We foresee sustained growth in the housing sector, with robust demand expected in the future.
Aman Sarin,
How is the real estate sector performance this year? What are the key trends to look for in 2024-25?
The real estate sector, particularly the mid high, luxury and ultra-luxury residential segment, has been thriving in recent years, and demand is expected to remain strong. Factors such as a better economic scenario, improved income levels, the desire to upgrade, and modern designs and amenities offered by developers contribute to this trend.
We believe that in the current fiscal year, homebuyers will continue to prefer projects from reputable developers. Key considerations will include good location, design, layouts, and green spaces. Additionally, amenities like clubhouses and recreational areas significantly influence homebuyer decisions, driving demand for projects that meet these criteria.
Our latest luxury project, ‘The Estate Residences’, exemplifies this trend of being developed with all attributes/amenities required for an ultra-luxury housing project showcasing our commitment to providing unparalleled leisure and recreational facilities as per homebuyers’ demand.
How is the company doing this year in terms of project execution and sales? Which are the key projects?
At Anant Raj, we prioritize timely project execution and completion without compromising on quality. All our projects are progressing as scheduled.
We are experiencing strong demand in all our verticals/products being developed in the township namely Anant Raj Estate be it plots, villas, ultra-luxury villas, independent luxury floors and the latest ultra-luxury group housing, ‘The Estate Residences’.
Our main focus is this integrated residential project, spanning nearly 200 acres in Sector 63A, Golf Course Extension Road, Gurugram. This development includes villas, floors, commercial spaces, and group housing, all designed with contemporary trends and aesthetics in mind.
In addition to this, we have commenced another project called Anant Raj Aashray-II in Tirupati, Andhra Pradesh, spans approximately 10 lakh sq ft of saleable area and features nearly 1,900 apartments and started construction for expansion of our hotel-cum-commercial property spread over 5 acres in South Delhi with an additional leasable area of about 5 lakh sq ft. The construction is going on in full swing.
As far as our data center development is concerned, our next phase is almost ready for operational use and target it to achieve substantial capacity by the end of this financial year. The work for setting up the data center is going on as scheduled.
What difference do you experience this year in buying trends in residential and commercial segments?
In the residential real estate sector, demand is primarily driven by end-users, although investors have also returned to the market due to its promising outlook. Both groups are showing a preference for luxury properties with extensive amenities but only from developers who have an excellent track record of delivering the projects on time with good quality. The buyer is willing to pay a premium for the reputation and good track record of the developer.
In the commercial segment, there is significant interest as the economy performs well. Many global companies are establishing their Global Capability Centers in India, and domestic companies are expanding and upgrading to better office spaces. Secondly, IT/ITes companies are now again promoting the work from office and offering incentives to the employees to work from office. Consequently, the demand for Grade A offices in metro cities is rising and is likely to continue.
What are the key challenges faced in the project execution on various fronts?
While we encounter challenges typical of the real estate industry, we are fortunate that our projects have garnered significant favour among homebuyers. Like many developers in the real estate sector, we navigate obstacles inherent to the industry with resilience and adaptability. Yet, our distinct advantage lies in our more than 5-decade long experience of execution and development and track record which helps us to perceive the challenge in advance and thus mitigated well in advance.
Secondly, Real Estate Regulatory Act (Known as RERA) has been a great game-changer, which was passed by the Government in 2016. The statute encourages developers to complete projects on schedule, uphold high standards, and follow the established rules which helped developer like Anant Raj to distinguished from others and thus, reduction in some of challenges.
What are your plans for the year 2024-25 and beyond? Which are the key projects coming up?
We have achieved remarkable pre-sales from our projects and have strategic plans to launch multiple new projects in this category within the next 12-18 months in Sector 63A, Gurugram for which we already hold fully paid land and approvals are at various stages. Additionally, we possess about 100 acres of land banks in prime areas of Delhi and plan to introduce further projects in these locations in coming times.
How do you look at the future market opportunities?
With the current economic landscape and the supply dynamics of luxury and ultra-luxury housing, we foresee sustained growth in the housing sector, with robust demand expected in the future, especially for developers with strong track records. In addition to the demand for retail and commercial spaces too will go up to supplement the need of growing housing population in new developments. This positive outlook underscores the resilience and potential of the real estate market, offering opportunities for investors, developers, and homebuyers alike.
