Well-designed gated communities are gaining preference from customers.

Vineet Goyal

Joint Managing Director, Kohinoor Group

How has the Pune realty market evolved in the last over two decades in terms opportunities for residential and commercial real estate?

One of the most promising and popular metro cities, Pune, known as pensioner's paradise and 'Cultural capital of India' has rapidly transformed to a bustling economic centre of India in the past two decades. Pune is considered as one of the fastest-growing cities in the Asia-Pacific region, and the second largest in the state of Maharashtra. Emerged as a new start-up hub, the Detroit of India has ranked 2nd on the 'Ease of Living Index 2020' by the ministry of housing and Urban affairs. In the past few decades, along with the city, the peripheral area such as Talegaon, Chakan, Pimpri-Chinchwad, the city has seen tremendous growth and has also emerged as prime development nodes due to the enormous industrial growth potential in these areas. Owing to the constant rise in population, growing real estate, socio-economic growth, infrastructural advancements, migration, and fast-growing industrialization, Pune has grown exponentially. The city has offered promising micro-market, and it mainly comprises people working across IT companies, BFSI, motor and automobile industry , students and others. To further support the growth of Pune, the government has granted Rs 650 billion over the next 7-8 years for the construction of a metro rail link, a new airport terminal and a ring road, which will further lead to the development of new flyovers and roads, International exhibition and convention centre, Mumbai-Pune Hyperloop one, Satara economic corridor along with other regional infrastructural developments.

Tell us about the impact of the Covid-19 pandemic on the residential sector in terms of demand and supply as well as the property prices?

With the second wave and amid a dramatic spike in the number of new coronavirus cases in India, the demand for residential real estate in India is being thrown off track. With many states being under lockdown curbs, the in-availability of logistics and supply chain support and migrant labour being off- sites has  affected the sector badly. Last year, when the country went under strict lockdown, the pandemic forced the real estate sector to employ digital business strategies, which led to a rapid transformation of sorts and rise in PropTech companies too. Factors such as partial lockdown limiting the movement, shortage of vaccine, difficulty in the movements of migrants, the safety of construction site workers all these factors considered, the sector has shown remarkable firmness in 2020, against unprecedented odds that have caused the economy to sink which later impacted consumer spending. Since housing sales in India's key markets and metro cities have started to bounce back, despite the general gloom caused by the pandemic. This shows  the immense potential of the real estate sector, which employs the highest number of unskilled workers across the nation. Overall, the sector is not new to challenges, be it the slowdown of 2008, inflation, the infamous NBFC crisis and the pandemic, the sector has seen it all and has always bounced back and faced the challenges head-on.

What is your take on the scope of redevelopment projects in Pune, like that in Mumbai? Also, how do you see the growth in the rental market, especially in the backdrop of the implementation of Model Tenancy Act?

When it involves redevelopment, cities like Mumbai and Pune has seen growth in the number of self-redevelopments in many aged housing societies. The building aged beyond 30 years is considered to go under redevelopment as per the government's rule. In this case, even if few members of the society oppose often it becomes difficult to pass the proposal even if others are in favour of the decision. With the state government's decision to require only 51% of the members to allow their approval for a housing society to be redeveloped, this decision has given a boost to the housing redevelopment activities within the city. Major pros for societies that opt for redevelopment are the benefits such as new amenities, better construction and additional facilities like elevators, fire systems and recreational centres. Along with the redevelopment, the Model Tenancy Act has geared towards creating a vibrant, sustainable, and inclusive rental housing market within the country, and to enable the creation of adequate rental housing stock for all the income groups, thereby addressing the difficulty of homelessness despite the consequences of the ongoing pandemic. The Model Tenancy Act will further help in unlocking vacant houses for rental housing uses. It's expected to offer a fillip to private participation in rental housing as a business model for addressing the large housing shortage.

The concepts of senior living, student living, co-living, co-working, were more prevalent in here as compared to other cities. How has Covid-19 impacted these segments & what is the future for them?

Covid-19 has severely impacted the current business. Colleges as well companies are yet to start on Campus. Many businesses are on ventilator. Occupancy has become zero at some of the properties and is just like hospitality many co-living and student housing businesses are shutting shop. Post covid-19 we would see organised operators in the co-living industry with hygiene and safety standards becoming the preferred choice for students and professionals. And that's when the Industry would again see revival and growth.

Pune has a significant number of township projects. What is your take on the changing consumer sentiment towards staying in a gated community especially in the wake of Covid-19 where movement was restricted due to the lockdowns imposed?

A lot has happened during the year, which was hitherto unprecedented, which changed the natural course of business uniquely impacting the way the realty sector moved in 2020. The year 2020 had reflections of both Covid-19 pandemic associated disturbances and further with the resurgence of houses in gated community demand in the latter part of the year. The lockdown and social distancing situation have forced residents of large apartment complexes and gated communities to adapt to a new routine and devise norms to make sure everyone stick to the government guidelines to check on the spread of Covid-19. In such societies where there are few grocery and fruit and vegetable stores within the community, crowding of residents at these places will defeat the very purpose of social distancing raising the fear in the rise of covid cases. Thus, management of the societies are setting stringent measures to tackle the Covid-19 outbreak. Covid-19 has impacted what people desire from their homes. There is also an increased emphasis on hygiene and security. Well-designed gated communities are gaining preference from customers. Few developers who have  gated communities which provide high-end amenities, innovative technology and have made no compromise in the safety of the occupants have garnered more attention lately.  The need for safety and health of the home buyers and the residents will be a serious reason behind the expansion of gated community projects in the post-Covid era.

What is your current portfolio & what are your expansion plans for the next 3 years?

We have successfully delivered 15+ projects in the last 10 years with 6000+ happy families. Currently, we have 10 ongoing residential projects, primarily located in the western, southern and eastern parts of Pune – Hinjawadi, Shirgoan, Pimpri, Tathawade and Ravet.

Kohinoor Group is expanding its market with 7 million sqft in the next 3 years (15+ new projects across the city). Moreover, Kohinoor World Towers, our commercial project, will be one of the largest commercial spaces in the Pimpri region comprising of grade A office spaces, high street retail, alfresco & allied best in class amenities, in Pimpri. The prime project is spread across 1.8 million sqft,  including future development.

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