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Southern Peripheral Road is fast emerging as the epicenter of Gurugram’s real estate market

Jun 11, 2024 by Mansi Praharaj 0 Comments #Gurugram's real estate market, #kushagr ansal, #NCR, #Ravi Aggarwal, #Southern Peripheral Road

The Southern Peripheral Road (SPR) in Gurugram is rapidly transforming into one of the most coveted real estate destinations in the National Capital Region (NCR). Spanning 16 kilometers, SPR has become the newest hotspot for both investors and homebuyers, drawn by its unparalleled connectivity, luxurious living options, and promising prospects.

Unmatched Connectivity: The Heart of SPR’s Appeal

One of the most compelling reasons for SPR’s rise as a real estate hub is its unmatched connectivity. This 90-meter-wide road serves as a critical artery linking various key destinations within Gurgaon and beyond. According to the India Real Estate Report by Knight Frank, SPR connects Gurgaon’s prime sectors with South Delhi through MG Road, Faridabad Highway, and the elevated road between Dwarka and Sohna expressways. This strategic connectivity ensures smooth traffic flow and easy access to major routes like the Golf Course Road, Golf Course Extension Road, and NH-8.

Moreover, SPR’s connection to NH-8 facilitates direct access to Jaipur, while its proximity to the Sohna Road enhances connectivity to the Delhi-Mumbai Industrial Corridor. Additionally, the corridor provides seamless access to the Indira Gandhi International Airport, making it an ideal choice for frequent travellers and businesses seeking well-connected locations. The integration of metro stations, particularly from the Millennium City metro station to Gurgaon sectors 71 and 72, further enhances public transportation options, reducing reliance on private vehicles and mitigating traffic congestion.

Premium Living Spaces: Catering to Discerning Homebuyers

SPR’s real estate landscape is marked by a surge in premium residential projects, catering to the growing demand for premium living spaces. According to the Cushman & Wakefield Q1 2024 Report, the corridor witnessed the launch of 3,614 new units in the first quarter of 2024, with the premium segment commanding a remarkable 61% market share. This surge underscores the region’s appeal among discerning homebuyers seeking quality and convenience.

Proximity to sectors like 68, 69, 70, 70A, 71, 72, 73, 74, 74A, 75, 75A and 76 has further fuelled SPR’s attractiveness. Esteemed developers have played a pivotal role in transforming SPR into a hub of luxurious & premium residential and commercial excellence.

Robust Infrastructure Development: Shaping the Urban Landscape

The robust infrastructure development along SPR is another key factor driving its real estate boom. The road’s strategic planning and development have created a well-rounded urban ecosystem that enhances liveability and productivity. Wide, well-maintained roads, state-of-the-art amenities, and ample green spaces contribute to SPR’s appeal as a modern urban corridor.

Further planned infrastructure projects, such as the upcoming metro line running parallel to SPR, promise to further elevate its status as a prime real estate destination. The Gurgaon-Manesar Masterplan designates sectors 71 and 73 for commercial development, adding to SPR’s appeal for institutional and commercial growth. This comprehensive development plan positions SPR as a lucrative investment destination, offering a blend of residential comfort and commercial viability.

Economic Prosperity: Job Creation and Ecosystem Development

SPR’s impact extends beyond real estate to drive economic prosperity through job creation and ecosystem development. The development and operation of residential and commercial projects along SPR have generated direct employment opportunities in construction, property management, hospitality, and retail sectors. Moreover, SPR has catalysed the growth of ancillary industries and services, ranging from transportation and logistics to healthcare and education.

Ravi Aggarwal, Co-founder & Managing Director, Signature Global (India) Limited said, “The Southern Peripheral Road (SPR) is undergoing significant new developments, including the elevated SPR and the cloverleaf at Vatika Chowk. These enhancements will ensure smooth traffic flow from the Sohna elevated road and SPR to the Dwarka Expressway, the Delhi-Mumbai Expressway, and NH48, thanks to the entire loop having controlled access for traffic movement. Additionally, the upcoming jungle safari further enhances the investment appeal of this location.

SPR well positioned as the heart of Gurugram, an upcoming metro station planned in 72 A, and various multinational brands across the segments are setting their office space or retail centres in the location indicating its potential. Besides, a proposed metro line running along SPR from Sector 55/56 to Vatika Chowk, featuring five new metro stations at Sector 56, Sushant Lok, Sushant Lok Phase-3, Rosewood City, and Vatika Chowk, also contributes to making this an ideal investment destination. Property prices are expected to surge around SPR, with sectors nearby such as 71, 72, 75, and 76 experiencing the highest appeal among homebuyers and investors.”

He further added, “More than just a transportation link, SPR is the backbone of Gurugram’s urban expansion. The corridor’s development showcases strategic urban planning, meeting the city’s growing demand for integrated living and working spaces. The ongoing projects and infrastructural enhancements are poised to make SPR a central hub for Gurugram’s economic growth. Investing in SPR today is like tapping into Gurugram’s future. The corridor’s blend of residential, commercial, and industrial spaces ensures continuous demand and rising property values. With the government’s strong push for infrastructure and connectivity, SPR is set to become one of the most coveted real estate destinations in the NCR region.”

Kushagr Ansal, Director of Ansal Housing said, “Southern Peripheral Road is rapidly becoming the heart of Gurugram’s real estate boom. Boasting excellent connectivity, modern infrastructure, and proximity to key commercial hubs, it attracts both investors and homebuyers, transforming the area into a sought-after destination for premium residential and commercial developments.”

Business

The RBI has once again opted to keep the repo rate unchanged

Feb 8, 2024 by Sujata Muguda 0 Comments #Ajendra Singh, #Ambience Group, #Amit Modi, #Ankush Kaul, #Ansal Housing, #Ashwinder R. Singh, #Axiom Landbase, #Bhartiya Urban, #CMD Gaurs Group, #County Group, #CREDAI NCR, #kushagr ansal, #Manoj Gaur, #Mohit Goel, #MRG Group, #Nayan Raheja, #Omaxe Group, #Pawan Sharma, #Pradeep Aggarwal, #Raheja Developers, #Rajesh K Saraf, #Rajjath Goel, #Sanchit Bhutani, #Sanjay Sharma, #Saya Group, #Signature Global (India) Ltd, #SKA Group, #Spectrum Metro, #Trisol Red, #Vikas Bhasin

The outcomes of the Reserve Bank of India’s (RBI) meeting have been announced by Governor Shaktikanta Das, confirming that there have been no changes to the repo rate, which remains steady at 6.5 percent. As a result, there will be no increase in loan EMIs. The real estate sector has welcomed this decision favorably.

Manoj Gaur, President CREDAI NCR and CMD Gaurs Group

Excellent decision by RBI. For the last one year, RBI has kept the repo rate unchanged at 6.5%. The real estate sector continues to exhibit a steady demand, the commercial segment is doing exceptionally well, and the country’s economy is growing from strength to strength. The residential segment will maintain the trajectory it took last year. I am sure that the sector will continue to show buoyancy as in the past quarters across the country.

Amit Modi, Director County Group

Once again, RBI has not made any changes in the repo rate, which is undeniably beneficial for the real estate sector. This will particularly uplift the morale of home buyers and investors. It clearly indicates that the country’s economy is consistently performing well.

Mohit Goel, Managing Director Omaxe Group

The RBI’s decision to maintain the repo rate at 6.5% aligns with its consistent approach and is welcomed. With a robust economy, high GDP growth, buoyant Sensex, stable crude oil prices, and easing inflation, the real estate sector is poised to sustain its strong performance in 2024. RBI’s decision aligns well with the country’s economic performance and signals stability, crucial for the ongoing realty sector’s robust growth.

Ashwinder R. Singh, Co-Chairman, CII, NR Committee for Real Estate, CEO Residential at Bhartiya Urban

With policy rates unchanged @6.50% and the RBI MPC’s commitment towards stable lending rates bodes well for India’s real estate sector, particularly in terms of home sales and home loans. With steady rates, prospective homebuyers can approach the market with confidence, driving increased demand for residential properties and facilitating easier access to home financing. This positive environment fosters growth and opportunity within the housing market, benefitting both buyers and developers alike.”

Nayan Raheja, Raheja Developers

The realty sector welcomes the RBI’s decision to hold the repo rate. This move will foster stability and bolster confidence among stakeholders, including home buyers and investors. However, the repo rate at 6.5% remains at a 4-year high, and a rollback would have boosted the affordable housing segment.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd

As expected, the RBI kept rates on hold. The prolonged pause, for the sixth time, since February 2023, is aimed at keeping inflation in check without hurting the economic growth momentum. With the reduction in policy rates would have been the best scenario for interest-sensitive sectors like the real estate sector, policy continuity is the next best outcome for both borrowers and developers alike. The decision allows homebuyers to make informed choices, which is expected to result in enhanced demand across all housing segments in line with the country’s overall economic progress.

Kushagr Ansal, Director Ansal Housing

The RBI’s decision to uphold the current repo rate is greeted with approval. While the real estate sector hoped for a slight reduction, this decision underscores stability. It is poised to enhance confidence among developers and homebuyers, providing clearer long-term financial commitments and EMIs.

Rajjath Goel, Managing Director of MRG Group, comments on

The RBI’s decision to sustain the repo rate at 6.5% for one more consecutive time, anticipating a positive surge in the housing market. Despite the rising housing costs, the unchanged home loan rates offer a semblance of relief to homebuyers. Consequently, both buyers and developers stand to benefit from stable interest rates, fostering increased consumer confidence and investment in the sector. The RBI’s decision is expected to bolster new launches and the expansion of projects in emerging hotspots.

Ankush Kaul, chief business officer – Ambience Group

“A commendable decision by RBI. It has been one year since the RBI decided to hit the pause button and keep the repo rate at 6.5%. It is expected to stimulate growth and boost the realty sector, providing a fillip to the premium housing and commercial segments. This decision presents the picture of the country’s resilient economy.

Sanchit Bhutani, MD of Group 108

This move is seen as a positive development, anticipated to stimulate growth in the real estate sector. The decision is expected to provide relief to the middle-income group, as they won’t have to bear the burden of higher interest rates on home loans. Additionally, there is a prediction that both commercial and residential property sales will experience an upswing. The Reserve Bank of India’s choice to maintain the repo rate reflects growing confidence in the sector.”

Rajesh K Saraf, Axiom Landbase, Managing Director, Axiom Landbase

The RBI’s decision to maintain the repo rate at 6.5% brings positive implications for the Indian housing and home loan sector. With interest rates remaining steady, prospective homebuyers can benefit from a favorable lending environment. This consistent stance instills confidence in the market’s reliability.

Pawan Sharma, Managing Director Trisol Red, comments that

The decision not to increase the repo rate is once again good news for the real estate sector. The fact that the repo rate has not increased in the past year has proven beneficial for the real estate sector in every aspect. This is undoubtedly excellent relief news for both home buyers and investors. Indeed, this will further benefit the market.

Sanjay Sharma, the Director of SKA Group

He emphasized that any hike in interest rates could adversely affect the real estate sector. The decision not to increase interest rates is expected to boost investor confidence and contribute to a rise in demand for residential properties.

Vikas Bhasin, Chairman & Managing Director, Saya Group

The RBI’s decision to keep the repo rate steady provides optimism to the real estate sector. This move underscores both macro and microeconomic stability, fueling year-end housing sales and bolstering the sector’s growth trajectory for 2024. It showcases the resilience of the country’s economy, poised to spur growth, particularly in premium housing and commercial segments.

Ajendra Singh, Vice-President (Sales & Marketing) Spectrum Metro

Not making changes in the repo rate signifies that the Indian Economy is strong. Compared to the Global Economy, India’s economic situation is better. The steps taken by the RBI are beneficial for the commercial and residential real estate sector in every aspect. We hope that this entire year will prove to be suitable for investors.

Business World

NCR witness 111% jump in new launches

Apr 8, 2021 by Neel Achary 0 Comments #Ansal Housing, #Director, #kushagr ansal

Delhi NCR market has performed much better than all other major cities in terms of new launches as the region witnessed a jump of 111% in Q1 2021 over Q4 2020. The next close city is Chennai that saw a jump of 74% in the same period, and Pune with 57%. According to JLL Q1 Residential Market Update – Q1 2021 report, “The markets of Delhi NCR and Chennai witnessed a substantial increase in launch activity during the quarter. New launches are still at 84% when compared to the pre-Covid levels of Q1 2020. Developers across the markets under review remain focused on the completion of under-construction projects and clearing their existing inventory.”

Many realtors point this change to the increasing confidence in the market, reflected in the sales figures. According to the JLL report, recovery in NCR was 92% of pre-COVID levels, and sales volume in Q1 2021 increased to 23% over Q4 2020. “The continued increase in sales indicates that demand and customer confidence is returning to the market; this is due to historically low home loan interest rates, stable housing prices, attractive payment schedules and freebies from developers, as well as government incentives. The start of the vaccine campaign has also helped to attract consumers back to the market,” says Ashok Gupta, CMD, Ajnara India Ltd.

There were 33,953 new residential units launched in the first quarter of 2021, up 27% from the previous quarter. With 69 per cent of new launches in the sub Rs 1 crore categories in Q1 2021, the growth focus on mid and affordable segments continues. Harvinder Singh Sikka, MD, Sikka Group feels that “Stamp duty reductions, more home loan rate reductions by most banks, and continuing discounts and deals have helped the residential sector make a successful comeback. Several new projects were launched in the October-December timeframe, fuelled by strong sales and positive consumer sentiment.”

Compared with Q1 2020, NCR added approximately 6,750 units in Q1 2021, a Y-o-Y increase of 9%; out of the total, approximately 52% of the new supply was in the affordable segment, according to ANAROCK’s Q1 2021 data. The data also revealed that the top 7 cities saw around 62,130 new homes launched in Q1 2021 (as opposed to 41,220 units in Q1 2020) – a significant increase of 51% Y-o-Y. “With improved demand and supply in the affordable housing market, the real estate sector, which has been going through a rough patch for the past few years, is gaining traction in Delhi-NCR. In 2020, affordable housing accounted for 40% of demand. Nearly 38 per cent of the overall affordable housing demand in the country came from Delhi-NCR. Gurugram accounted for 32 per cent of total demand in the Delhi-NCR region. Homebuyers have been much more circumspect in their decisions. There is an increasing preference for affordable housing premium projects built by developers with impeccable track record. The new launches by established developers, who have the capability to execute high-quality products, are thriving in the post-covid period,” says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global, and Chairman, National Council on Affordable Housing, ASSOCHAM.

With 43% share, mid-segment housing saw the maximum new launches in the quarter, while the affordable housing segment accounted for 30%. According to the Anarock data, the supply of luxury housing (priced >INR 1.5 Cr) also rose by 31% in Q1 2021 against the corresponding period in 2020. “Throughout 2021, housing affordability is expected to remain extremely favorable. If the current perks and benefits continue, we should expect more development in the coming quarters. The uncertainty surrounding employment and income stability is expected to decrease in the coming quarters, based on the expected economic growth trend. Increased consumer trust will have a direct positive effect on the housing market. Maximum demand would be driven by end-users,” says Kushagr Ansal, Director, Ansal Housing.

Business World

Tier II-III cities are key drivers for realty growth

Mar 24, 2021 by Neel Achary 0 Comments #Ansal Housing & President, #CREDAI Haryana, #Director, #kushagr ansal

By Mr.Kushagr Ansal, Director, Ansal Housing & President, CREDAI Haryana

Tier-II and -III cities are hotbeds for growth; as per a recent report by consulting firm Kearney, these cities are opening up opportunities for businesses and industries to expand. For a long time, these cities with abundant resources have been untapped. The country’s major developers flocked only towards the metro cities to establish world-class infrastructure. However, the pandemic has reversed the wave and initiated a trend among the real estate stalwarts to rethink their strategies and shift their focus from metros to Tier II-III cities.

Meanwhile, the sector is optimistic about the real estate scenario, particularly in Tier-II and Tier-III cities, especially after a KPMG survey that found that 22 per cent of consumers in Tier-II cities and 30 per cent of consumers in Tier-III cities believe their spending would increase or remain the same as before the COVID-19 pandemic spread. Currently, the top seven cities account for nearly 70 per cent of India’s residential market, with tier II and III cities accounting for the remaining 30 per cent.

Now, with pandemic emphasizing the value of a home, people have started becoming more cautious about the regular choices they make. It begins right from their homes; Tier-II cities have limited options in organised living, and only a few seasoned players were able to identify these cities ahead of the time. Self-sustainable integrated townships are becoming the centre of attraction, demand for organised living is on the rise, and people are keen to spend more for a better lifestyle.

The government and industry bodies have also realised the urgent need to distribute industries, capital, and population to these towns to utilise resources. There have been multiple schemes like Smart Cities Mission, AMRUT, construction of a network of new expressways, airports, transit systems for these cities’ uplift.

The face of real estate is constantly evolving, and the return of investments promised in Tier II-III cities is much higher and stable due to the developing infrastructure; this leads to developers venturing into more than one segment of real estate. As per the announcements made in the Union Budget 2021-22, the setting up of a Development Finance Institution (DFI) backed by government support and initial capital contribution will pivot better opportunities for the sector.

Also, the price fluctuation in Tier II-III cities is slightly slower than the metro cities, making them an ideal choice for investors looking to enter a long-term investment agreement, especially in volatile market conditions like now. Although tier-II cities will have lower real estate prices than tier-I cities, residents will enjoy benefits such as wide-open spaces, the freedom to remain close to home, low noise, etc. The majority of tier-II cities now have strong infrastructure advancements such as metro stations, excellent public transportation, and critical services such as schools, hospitals, banks, and shopping markets.

Many companies are relocating to tier-II cities as a result of the Coronavirus pandemic. It is expected that demand in these cities will increase by the second half of 2021 due to improved employment opportunities, infrastructure development, and enhanced connectivity. Nonetheless, there are a few stumbling blocks. For example, attracting FDI for projects in these cities has proven difficult. On the other hand, the government can help by enticing people to invest and develop living and working bases in these high-potential tier II-III cities through policies, tax initiatives, and benefits.

Business World

Sohna is emerging as top real estate destinations

Mar 23, 2021 by Neel Achary 0 Comments #Ansal Housing, #Director, #kushagr ansal

Sohna has risen steadily on the livability index over the last few years; the city and its vicinity show promising progress on many of the key parameters of the livability index that have made NCR a promising urban centre and satellite area. It scores well on key factors such as current and potential access to other cities, health and education services, the location’s proximity to business growth and development centres, civic amenities, etc. By 2031, the total population of 6.4 Lakhs is estimated to reside in South Gurugram. Increased habitability has a beneficial impact on perceived wellbeing and the overall socio-economic climate.

“Today, Sohna micro market has both affordable and big ticket residential developments, besides prominent commercial and hospitality developments in South of Gurgaon and neighbouring micro markets. As a result of this Sohna has emerged as a real estate hub, particularly affordable mid-segment hub for both end- users and investors , offering variety in the form of group housing, builder floors and villas. The biggest advantage is that property here is much affordable compared to neighbouring micro markets. This lower entry point makes it attractive market for investors. According to Anarock report, prices here have appreciated in double digit since 2014. So much so that it has beaten Noida West , another affordable housing hub in the NCR,” says Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, National Council on Affordable Housing, ASSOCHAM.

The affordability of housing is currently highly-priced as the cost of the majority of residential houses here varies between Rs.37-58 lakh for 2-BHK and Rs.61-89 lakh for 3-BHK. “In NCR, Sohna Road has emerged as one of the top-performing real estate markets as it has witnessed an appreciation of around 19% since 2013. The appreciation is much more than the appreciation in other markets of NCR, which is an indication of the livability and affordability of the area. Sohna Road has emerged not only as one of the best investment destinations, but also as the place where people can immediately move in,” says Ankit Kansal, Founder & MD, 360 Realtors.

Connectivity, in particular road connectivity, education, and infrastructure initiatives, which provided access to the location from across major business destinations, are the criteria on which the livability index has emerged favourably. Such criteria provide a strong framework for the location to grow its future potential. It is also connected very favourably to different primary employment locations, be it the service sector or the manufacturing and development sites.

As economic activity in services picks up and hits its critical mass towards southern vectors within Gurugram, some capital appreciation for existing housing or new launches, including South Gurugram, may be seen within accessible limits. The relative benefit of affordability will remain but will be steadily decreased. “The area is developing faster than expected as some of the government’s recent schemes and initiatives have given an impetus to the development of affordable units. The market here is at a nascent stage and most of the projects are in the under-construction stage. Coming years will see the delivery of many previously-launched units and a majority of these projects are group housing apartments,” says Kushagr Ansal, Director, Ansal Housing.

South Gurugram emerges as an autonomous self-supporting city, with robustly planned and maintained infrastructure and civic requirements by the civic authorities of the location and the construction of adequate retail and recreation centres within the region to reduce sites dependent on Gurugram and NCR nodal locations. The proof of the location’s potential can be measured by the fact that the Delhi-Mumbai Freight Corridor covers it, ensuring that secondary and tertiary industries are developed (or already existent). As the property prices are as low as half of the prevailing prices of the Gurugram, the area’s popularity is also rising as it becomes one of NCR’s economically sensitive real estate destinations.

Business World

Unchanged repo rate, Realtors rely on high consumer confidence

Oct 10, 2020 by Gouri Achary 0 Comments #Amit Jain, #Harvinder Singh Singh Sikka, #kushagr ansal, #Rajat Goel, #Raman Gupta, #Realtors, #Vikas Bhasin

The RBI today kept the repo rate and reverse repo rate unchanged at 4% and 3.35% respectively. The Apex Bank also announced on-tap TLTRO for Rs 1 trillion at 4% till March 2021 and will conduct OMO worth Rs 20,000 crore next week. The RBI governor also announced that the RBI will take steps that will infuse liquidity to improve financial conditions. With the optimism of RBI for a strong rebound of the GDP and inflation to ease to projected target by Q4 of FY’21, real estate sector too is upbeat about economic growth. Prateek Mittal, Executive Director, Sushma Group, said, “At this time when the buyers are seeking stable investment options, real estate sector with low-interest rates emerges as the safest investment proposition and the all-time low repo rate is adding impetus to the same.”

Uddhav Poddar, MD, Bhumika Group & Founding Member, SCAI, said, “The real estate sector is badly affected due to the pandemic, and it needs support from the banks. One of the biggest issue with some of the realtors is the liquidity issue, and we hope RBI will address it as it has announced to take steps to ease liquidity. One of the announcements that are beneficial for the sector is that the new housing loans to be linked to LTV only. We hope that the buyers will take advantage of the situation and realize their dream of owning a home.”

The realtors feel that the RBI should have made some announcement to improve liquidity in the real estate sector, as many developers are facing the heat after COVID-19 led to complete shutdown of operations. Nagaraju Routhu, CEO, Hero Realty, said, “Decision of the RBI to keep repo rates unchanged is along expected lines. RBI’s commentary on the economy gives hope for the revival of the real estate sector in the coming quarters. The sector, however, needs handholding by the Government and the RBI to tide over this difficult period. Measures to boost liquidity for the sector are urgently needed. The optimism about economic growth cannot ignore the needs of the common man who is still in ‘cautious spending’ mode. The good part is that the real estate sector is getting attention by the buyers as they have realized the safety of real estate asset, but they do look towards sops from the government that can help them in realizing their dream of owning a home.”

Ashish Bhutani, MD & CEO, Bhutani Infra, said, “The bank should have taken into consideration the need for liquidity. The apex bank has also talked about improving liquidity in the market, which will have a direct bearing on the real estate too. Like the RBI we too are optimistic about the economic growth. Having said that we were hoping for announcements that can specifically talk about various sectors and how banks are going to help improve growth. However, we are upbeat as the consumer sentiment is high, especially after they witnessed the brittle nature of other investment vehicles as against real estate.”

Saying that the decision to keep the repo & reverse repo rate unchanged underpins the accommodative policy by the government alongside reining the inflation rate, Ankit Kansal, Founder & MD, 360 Realtors, pointed out “This should have an overall positive impact on the recovering Indian Real Estate industry as the accommodative stance should plug-in the liquidity crunch in the market. Likewise, managing inflation will control the cost. At the same time, the RBI has announced a sharp GDP decline of 9.5% for FY 21, which is in line with what has been predicted by most of the major international & domestic rating agencies. Now all eyes would be on how the government plans to combat the economic slowdown and boost demand. A host of steps in the form of capital injection, refinancing of banking institutions, policy impetus, subsidies, and discounts are required to see a faster recovery.”

Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, was of the view that “It was an expected move by the RBI to keep the repo rate unchanged, and it is commendable that it is doing its part to ensure that the economy stays on the right path. Loan on LTV will be helpful for the real estate sector, and it will help them get more loan amount.”

Abhishek Bansal, Executive Director, Pacific Group, said, “The real estate market has started picking up as people are enjoying the low-interest rates and subdued pricing. The sector is also enjoying the fruits of the changed mindset of people towards owning a real estate asset, be it for living or earning extra income. The safety of real estate investment that came to the fore will gain steam during the festival season as fence-sitters too will come out in great numbers.”

Maintaining that the real estate sector is enjoying the fruits of high consumer confidence, Yash Miglani, MD, Migsun Group, said, “We were expecting the repo rate to remain unchanged, and the decision of the RBI will have no impact on the sector in the current scenario. In the latest announcement, the provision of housing loan to be linked with LTV is going to help the buyers, and hence the sector will see more sales.”

While saying that he understands the reasons for keeping the repo rate unchanged Harvinder Singh Singh Sikka, MD, Sikka Group, added “One favourable measure for the real estate in the latest announcement by the RBI is that the new housing loans will be linked on to loan to value (LTV). It will help the buyers get loans easily and realize their dream of buying a home. The buyers are already coming back to the sector and the coming festival season would be a lot better than the previous years.”

Agreeing with others Kushagr Ansal, Director, Ansal Housing & President, CREDAI Haryana, said, “The decision of the RBI to keep the new housing loans only to loan to value will encourage more buyers to come forward. The real estate market was looking good after the Unlock, and this particular step will make more fence-sitters to decide on buying a home. Apart from that, the good sign is that the apex bank is optimistic about economic growth. The measures that the RBI took in the last few months are showing a positive impact, and we hope that the latest decisions will help the economy recover faster.”

Raman Gupta, Director- Branding & Construction, GBP Group, was of the view that “It was an expected move to keep the economy on its path to revival after being hit by Covid-19. Over the past few months, people have realized the importance of owning a home and at this time when people are adjusting to the new normal, they have been seen exploring the stable investment options and real estate is topping the chart. The low-interest rates and onset of the festive season will bring cheers to the real estate sector. Apart from keeping the repo rate at as low as 4 pc, RBI has also announced that it is ready to take steps that will infuse liquidity to improve financial conditions and we are looking forward to its positive impact on the recovering Indian Real Estate sector.”

Rajat Goel, JMD MRG World, said, “RBI has kept the repo rate unchanged at 4% and reverse repo rate at 3.35%, during its recent announcement with the prediction of GDP decline about 9.5% for FY 21, which is on similar lines with the prediction from rating agencies. Affordable housing segment has seen a good number of enquiries from end-users amid the uncertain market conditions which is a sign of positivity. Apart from this, RBI’s decision to take steps for infusing liquidity remain awaited, which will prominently affect the overall sentiment of real estate sector.

Amit Jain, Managing Director, Mahagun Group, said, “The announcement was on the expected lines; the good thing is that the RBI looked optimistic about the economic growth, which is a good sign. Real estate sector has already started witnessing positive growth and is speedily recovering from the loss of lockdown. The momentum is picking up pace in this festival season as buyers are enjoying low home loan interest rates.”

Vikas Bhasin, CMD, Saya Homes, said, “We are optimistic that the measures announced by the RBI will help revive economic growth. Multiple announcements were made that will help other industries to go on a growth trajectory; this will have an indirect impact on real estate growth too as the sector is susceptible to economic changes. However, after the Unlock, the real estate is on a high note as people swarmed real estate sites to get hold of a property.”

Business World

Expert Perspective: Real estate tackling crisis & growth opportunities In Tier II cities

Aug 21, 2020 by Gouri Achary 0 Comments #‘Local for Vocal’, #AMRUT & PMAY, #kushagr ansal, #real estate, #Smart Cities, #Tier II and Tier III cities from metros

Real estate has time and again proven to be the most valuable capital asset. Crisis situations like the ongoing contagion leading to market uncertainty has strengthened its status further due to the appreciation and future returns promised. The lockdown did give a direct setback to the sector in terms of halted construction, which further impacted the delivery and possession of projects. However, looking at the current scenario government’s timely aid of extensions and relief packages is helping realty in picking up some pace as industries began to reopen and function as per the new normal.

Quality of lifestyle has undergone a drastic transformation for every section of society, which has driven a change in preferences for the residential segment. In order to map these changing trends amongst different demography of buyers, the real estate sector has become more adaptive and competent with technological integrations such as digital marketing, virtual tours, drone views, live project launches, online booking etc. Only reputed developers with years of experience who believed in maintaining a transparent and accountable relationship with their buyers and investors quickly get accustomed to these changes.

Additionally, the migration to Tier II and Tier III cities from metros has spurred growth in infrastructure and development, making these regions the new hotspots for realty. Controlled and well- maintained integrated townships are comparatively less in number here. The cost of land is lower and availability is higher than the metros, making it favourable for seasoned developers to venture into this market. Commercial projects with a horizon of 2-3 years also hold the potential to redefine the overall status of the city. It would become a channel for better job opportunities, which will be subsequently boosting the economy of the region. Few tier II-III markets would be getting their first of its kind modern residential and commercial property, this USP will be able to attract investors readily.

The government is also supportive of development and robust infrastructure in these cities with campaigns like Smart Cities Mission, AMRUT & PMAY. Repo rate cut announced by RBI has brought down the home loan interest rates, & relief package allotted to HFCs are all steps taken for the upliftment of the real estate sector even in smaller markets like Tier 2-3. The ‘Local for Vocal’ campaign by the government would be another boost to industries and manufacturing plants in smaller cities. It will be helpful for them in increasing their supply chain, thus directly impacting their growth. Need for better living and entertainment would follow, as the scale of businesses will rise.