The accelerated market consolidation is creating an opportunity for organized developers.

Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd

What are the key continuing challenges which you foresee impacting the economy as a whole, and the Real Estate Sector post easing out of lockdown in stages?

The economy continues to face key issues of employment generation, debt servicing and management by companies. For diversified developers like us, brand equity, differentiated products with luxury being the prime focus and financial prowess support the buyer interest.

Are there any green shoots visible after the announcement of the stimulus packages / and RBI's rate cuts on the realty sector?

We are observing a trend of enhanced interest and increased demand for some of our ready-to-move-in projects. By and large, there is a renewed interest in high-quality products offered by large organized developers, especially those with a strong balance sheet and high brand recall. A combination of favourable factors such as the reduced stamp duty and low-interest rates is expediting the decision time cycle for prospective customers.

What further measures should be undertaken by the states / central governments?

The government and the Reserve Bank of India (RBI) have taken numerous measures to give a boost to the real estate sector over the past few years. However, there are certain pain-points which are still hampering the growth of the real estate sector. The demand is gradually seeing some green shoots of revival, especially in the wake of reduced stamp duty charges (in Maharashtra), further reduction in home loan interest rates would improve the flow of credit and encourage the buyer's interest and boost demand. Further, single-window clearances for residential projects and restoring the input tax credit benefits would, therefore, increase demand for under-construction properties.

What steps should be taken to address the challenge of scarcity of labourers?

Migrant labourers need up skilling, social security and insurance as a primary state support besides a quick implementation of the development of affordable rental housing complexes so that they could work and live comfortably in big cities.  Importantly, states should work seamlessly to ensure the availability of quality labour in places where it is needed the most so that projects don't get delayed and investors get encouraged.

Brief us on your outlook for the next couple years in the realty segment.

As we have seen from reports and surveys, prices in most markets have held steady or seen marginal correction amid the pandemic and NBFC crisis. The trend since September has been encouraging in big markets like MMR where buyers are coming forward to take advantage of the price correction and stamp duty reduction.

Going forward, property price may see further stabilisation or a marginal upward movement in select geographies before settling at higher levels. Land prices may see a reduction due to reluctance on the part of buyers. Thus, we believe the room for correction has been fully exploited in markets like MMR hence the value proposition is much higher in branded properties today.

As far as trends are concerned, health, safety and work-from-home trends have brought the focus back to the living space. People are willing to upgrade to a project with holistic amenities and lifestyle offerings. The rise in demand for additional space to convert to the workstation and efficient layout to customize the interiors for all members of the family due to privacy needs is quite evident. The pandemic has created an opportunity for the sector to become tech-savvy in terms of sales and marketing along with a focus to be automated at the project sites. Additionally, the accelerated market consolidation is creating an opportunity for organized developers who have shown resilience amid economic doom and pandemic.

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