Single window clearance and simplified process for online approvals will result in more efficiency.

Pritam Chivukula

- Co-Founder and Director, Tridhaatu Realty

What is your outlook on the RE sector in Mumbai, the growth drivers, and how sustainable the growth trends?

Historically Mumbai real estate market has always defied the odds and it continues to do so. Having said that the infrastructure and connectivity was always a challenge. However, the last decade has witnessed major upgrades in the connectivity part with several infrastructure projects like Bandra-Worli Sea Link, Santacruz-Chembur Link Road, Eastern Freeway and other flyovers designed to reduce bottlenecks and ease out traffic movements. We are also optimistic about the Coastal Road and the Mumbai Trans Harbour Link Road which will ensure better connectivity. The percolation of Mumbai Metro services into the deeper suburbs of Mumbai will also help in further dissemination of residences thereby reducing the clutter in the city.

On the price front, we have seen prices remain stagnant over the last 3-4 years. We feel with the delivery cycle improving coupled with lower home loan rates and the need for a better lifestyle will lead to a decent growth pattern. We are already witnessing this for the last 2 quarters, and it looks to continue at the same velocity for the next 4-6 quarters.

What are the current challenges and what further regulatory / policy reforms do you expect for the sustainable growth of the sector?

We have seen a very proactive approach by both the Central as well as State level bodies to get to the root of the problem and act accordingly. Measures in sync with the central bank such as lower home loan rates, first time home buyer benefits, etc aided by local measures like reduced stamp duty, etc have ensured that the genuine home buyers are benefitted. On the developers' front, efforts such as the reduced premiums, etc are paying off the dividends.

Single window clearance and the need for a more simplified process of getting online approvals from various Government bodies will result in more efficient operations, saving both costs and time.

Also, the 'industry status' has been a long-standing demand by the sector, which was only partially fulfilled when the affordable housing segment received industry status in 2018. It's a known fact that developers have been experiencing major cash flow problems for a few years now. While this is mainly due to unsold inventory piling up due to an unstable housing demand, the Covid-19 pandemic has also had its impact, making the situation far worse. Industry status at this point would provide a much-needed relief to the developers and give them an opportunity to focus on increasing sales, offloading the existing unsold inventories.

The government has reduced the GST burden by rationalising the effective rate on residential projects. But the unavailability of Input Tax Credit (ITC) to developers has resulted in the minimal reduction in prices to the home buyers, largely offsetting the GST reduction measure. If the ITC is restored it can help developers to pass on the tax benefit to homebuyers which will lead to reduced cost to the buyers.

While steps have been taken in the right direction, there is still some way to go before these challenges are overcome.

How the Information Communication Technology - ICT - and digital platforms have impacted the sector in the entire ecosystem?

Covid has provided an impetus to the digital modes of communication across the entire stakeholder set across the entire spectrum. What was earlier a 60 - 90 day process from a lead generation to site visits to negotiations to booking and post sales has practically shrunk by leaps and bounds. With the integration of technology, the customer, from the comfort of his home is able to seamlessly get a feel of the entire project, features, and neighbourhood.

 We have seen the transformation via digital platforms - like video calling, e-meetings, virtual walkthroughs, etc aid the customer to make a more informed and a quick decision without stepping out of his residence.

 On the organizational / industry front, with the tech-enabled platforms a lot of data mining and insights are derived, which enable us to strategize and innovate to cater to the right demand. This will also help the municipal and other bodies to foresee the growing requirements and plan infrastructure accordingly.

 International investments into the sector have seen a shift in the way buildings are constructed. Most developers are adapting to the latest in building technology which is a major differentiating factor in the construction industry today. Elements like Virtual Reality, AI security, and BIM are transforming the trends today, both in the commercial and housing sector. It is necessary that all competitors start getting technologically efficient to live up to the present challenges faced in the industry.

Tell us about your footprint in Mumbai, and projects on the pipeline in Mumbai

We have always had a focused approach with our areas of operations being majorly at Chembur and Matunga. We have delivered around 1 million sq. ft. and are currently working on around 1.1 million sq. ft. to be delivered in a phased manner in 15-18 months starting next quarter.

Our business model allows us to offer a versatile portfolio of units right from contemporary 1 BHK in Tridhaatu Morya - a complete residential complex to Tridhaatu Aum which offer extra-large 2 BHKs with all amenities to ultra-spacious 5 BHK residences in Tridhaatu Aranya overlooking the evergreen BARC hills to the home buyer in Chembur. Similarly, our project Tridhaatu Kshitij offers curated homes overlooking the Arabian Sea, while the projects in Matunga (CR) offer lavish 3 / 4 BHKs in key neighbourhoods. Tridhaatu takes care of every minute detail and offers something for every home buyer.

Hits: 285