Co-working emerged as the new interest in commercial real estate
Consolidation via mergers and acquisitions was rife in all sectors, completely redefining the concept of 'financial health' among players and drawing clear lines on who will survive the heat. This process will continue throughout 2019, as well, says Vaibhav Deo - Vice President, Residential Sales, Raheja Universal
Given the major government policies implementation such as GST and demonetization how was the performance in 2018
The real estate sector in India entered a recovery mode during 2018 where the initial challenges posed by various regulatory reforms started settling in. In the last few years, the central government introduced several landmark reforms (such as RERA, GST, demonetization, Insolvency and Bankruptcy Code, adoption of REITs, etc.) initiate a healthy ecosystem infused with greater transparency, accountability and customer assurance. The implementation GST from July 2017 has disturbed real estate transactions. While earlier, a service tax had to be paid for under-construction properties, now GST has to be paid. The effective rate of service tax was 4.5% of the property’s value, while the effective rate of GST is 12% with inputs tax credit. The Securities and Exchange Board of India (SEBI) had also given its approval for the Real Estate Investment Trust (REIT) platform which will help in allowing all kinds of investors to invest in the Indian real estate market
- Can you give us an outlook of the real estate market?
The Year 2018 had lot of ups and downs for the Indian real estate. In spite of any recovery signs across different sectors, the liquidity crunch – further worsened due to NBFC crisis – put all industry stakeholders on tenterhooks. Consolidation via mergers and acquisitions was rife in all sectors, completely redefining the concept of ‘financial health’ among players and drawing clear lines on who will survive the heat. This process will continue throughout 2019, as well.
The affordable housing saw a rise in residential, co-working emerged as the new interest in commercial real estate.
- What impact does present regulatory environment have on the developers?
As the developers and brokers started to accept the new market truth and beginning to fall in place, the residential sector began to recover visibility and viability. Regulatory norms of the real estate sector presently have rejuvenated the industry. This part which was pressed with getting initial issues presented by the common regulatory standards has now settled and turned out to be progressively restructured. We can see these shifts like there have been fewer project launches and the focus has been on execution. Developers have tried to follow to compliance’s, to avoid litigation’s, led to developing better relationship with the buyers, taking initiatives towards a healthy environment and overall contributed to making real estate a more mature and consolidated market.
- Please brief us on some of the major projects that have been commissioned or in the advance stages of completion?
Founded in 1980, Raheja Universal Pvt. Ltd, a leading conglomerate real estate company headquartered in Mumbai, the country’s financial capital. Raheja Universal has completed development of over approx. 8.34 mn sq. ft. of real estate in the Mumbai Metropolitan Region (MMR) across 53 projects Landmark premium buildings across the Mumbai Metropolitan Region (MMR) region. Focusing on Mumbai, Raheja Universal launched Raheja Imperia-I, located in Worli, the 60 storey tower offers 3, 4 & 5 BHK homes with prices starting from 8cr. With Raheja Imperia-I, Mumbai will soon get Asia’s highest residential infinity pool, “Aeon”. The 50- foot long rooftop infinity pool will be located on top at the 60th level. In addition to “Aeon”, the project offers various lavish handpicked amenities namely, Horizon60 – The Private Club, Atmosphere – The Party Deck, Luna-The Sky Media Zone at the rooftop, an amphitheater, a ballroom, The Imperial Park – for strolling and enjoying delicacies at Café Laguna while you watch your children swim in the exclusive pool, and Club Imperia for fitness and sports enthusiasts. With an unparalleled view; float atop the city in Aeon, dine with your companion at a perfect setting in Atmosphere-the Party Deck or Horizon 60 – the Private Club and engage in an immersive experience of watching movies at the apex in Luna – the Sky Media Zone.
