Narayan Neelakanteswaran, Executive Director (Operations) belongs to the team of exceptional techno-commercial personnel, technical experts, specialized project management professionals, skilled workforce and state-of-the-art technology that ensure timely and successful completion of projects entrusted to it. He shares his overview on the real estate sector of India.
“We expect robust activity in the real estate sector towards the end of this calendar year”
- To begin with, please share your thoughts on current real estate scenario?
We expect the demand in residential segment to pick up in the coming quarters, as interest rate reduction benefit is passed on and as developmental impact renews interest in home buying.
The shrinkage in availability of commercial space is expected to boost the development of commercial projects in the quarters ahead.
The Government’s initiatives to provide housing for all in particular and to promote growth and development in general are bound to increase construction activity in the building segment.
It was a matter of serious concern that construction permits were delayed and enforcement of contracts was poor, as reflected in the recently published World Bank report on ease of doing business. However, the Government has assured that approvals for construction projects in urban areas will be streamlined soon to enable time bound and hassle free clearances for projects. There have been positive developments already in this regard, benefitting end customers – which will in turn boost demand for housing.
Our business outlook is positive considering the above, particularly in the mature markets of Mumbai, NCR and Bengaluru.
We expect robust activity in the real estate sector towards the end of this calendar year.
We believe that there will be a positive boost in the upcoming Budgets of central and state governments. Ease of doing business, particularly in simplification of the processes for construction permits will happen soon. Furthermore, the enactment of the Real Estate bill is bound to expedite the construction phase with dedicated escrow accounts. This will boost the confidence of the end customers, leading to increased demand.
Demography combined with development is expected to fuel demand for real estate and resurgence to this effect should be visible by the year end.
- Tell us about some of your project taking place in different parts of India?
We have recently bagged building construction projects worth over Rs. 1000 Cr, spread across Mumbai, Noida, Gurgaon, Bengaluru and Pune. We are also executing some projects in Hyderabad and Patna.
Our clientele includes Lodha, Brookfield, Godrej, Rustomjee, Hiranandani, Wadhwa, Sheth, Emaar, Sattva, Provident,Ozone, Peninsula, T Bhimjyani, Century, KMB, Ramprastha, Paras, Patel Realty, Tridhaatu, Rohan, Ahuja, Transcon, RR, Radius, Unitech, ABIL, SiddhShekha etc.
We have been getting repeat orders from many of our Clients, reflecting the trust reposed on us.
- How has the revenue mix been so far in recent times?
We are a start-up actually, as we are yet to achieve three full financial years of operation. Our focus has been on construction of residential, commercial and institutional buildings. Nevertheless, we have been able to achieve Sales of over Rs. 600 Cr in FY 14-15 and we are on track to exceed Sales of Rs. 950 Cr in FY 15-16. Bulk of our Sales has come from residential building construction for private developers. Going forward, we expect to widen the portfolio to cover more of the commercial and institutional buildings, in both private and public sector.
- What is in store for near future?
We have had a good start, in difficult market times. With the boost in demand for real estate in the years ahead, combined with the mission for housing for all, we expect the opportunities to expand substantially. The potential to expand operations into other cities besides benefitting from Smart City projects is high. However, being agile and competent is key to leverage the opportunities for beneficial and sustainable growth, We are committed to build further on our robust project delivery mechanism across all zones and segments of our operation to this effect.