Surging various real estate industry: Accelerating Growth Phase!
As an organization we, quoted by Puravankara Limited, have set aggressive growth targets for ourselves which in the current environment we are very confident of achieving.
What new real estate trends are emerging in the development market?
It has been a roller coaster ride for the entire real estate industry. Be it the pronouncement of demonetization or the introduction of RERA and GST, the last one year has seen multiple policies impacting the real estate industry.
The year 2017 has been privy to various trends in the real estate industry. Some of the key trends were a surge in the demand for affordable housing, greater focus on construction technology and sustainable/green buildings and co-working spaces taking over the commercial wing of real estate.
Affordable Housing
Affordable Housing is said to be the next trend setter in the industry. A constant increase in urban migration especially the white collar mass drifting to the bigger cities for better employment opportunities. This has pushed the overall demand for affordable housing projects in India in the last half decade.
Also with several initiatives being introduced by the government, like ‘Housing For All 2020’ program, granting infrastructure status to affordable housing projects, benefits to first home buyer under PMAY scheme etc. have further boosted the demand in affordable housing projects.
Co-working office spaces
India is today witnessing the rapid growth of start-ups, small businesses, etc., thereby creating a market for conducive economical work spaces. The co-working space is an answer to this and has created a new wave of office space demand in the commercial wing of the real estate sector.
Construction Technology – Technology comes as a boon to the construction industry by helping in continually improving quality and delivery of projects on time. Moreover, with an increase in interest and demand for affordable housing, precast technology will continue gaining popularity as it provides ready to build components.
Zero energy homes – Zero energy homes is the next big thing in the real estate industry, as the world moves towards a more sustainable planet. Zero energy homes use a method of construction which operates off the electric grid, utilizing renewable energy sources to produce energy – wind collector and solar pane.
Share with us your new projects and plans that are taking your business to a new level.
As an organisation, we are heading towards a phase of exponential growth, with the continuing commitment that we have made to our stakeholders, we intend to leverage our strengths and our Brand on the expressway of growth. Over the next few quarters we envision approx. 15 msft. of launches between both our brands, but of course Provident will have a larger share of the pie in terms of volume.
Here we could leverage our existing land bank or sign up new deals especially JDs & JVs. As far as trends in real estate go, ‘Ready to move in’ and ‘Affordable housing segment’ are expected to be the growth drivers for next couple of quarters. The burgeoning aspiration of the Indian middle class supported by various government sops and policies has accelerated the demand for affordable homes in India.
We have chalked out a plan to launch 14 new projects in the next 12-15 months entailing an investment of about Rs. 3,200 crore in construction over the next five years. A total of six new projects under the affordable housing brand ‘Provident’ and the rest under premium ‘Puravankara’ brand. These 14 projects will be spread across five locations — Bengaluru, Chennai, Mumbai, Pune and Goa with 13 projects being residential and one commercial.
As an organization we have set aggressive growth targets for ourselves which in the current environment we are very confident of achieving.
Explain your views on the potential growth in the rising sector and the way your business will get benefit from the market graph?
The real estate industry will undergo a consolidation phase on account of RERA and other factors. Strong brands with focus on execution and compliance will benefit disproportionately. As an organisation, our focus on execution, transparency and compliance puts us in accelerated mode to take advantage of this growth phase.
Over the next 3-4 quarters we have an exciting launch pipeline across the Puravankara and Provident brands. The launches have been planned in Bangalore, Chennai, Mumbai, Pune, and Goa.
With Provident Housing we will venture into cities like Mumbai and Pune and of course launch few projects in Bengaluru and Chennai too. As an organisation we have aligned ourselves to the nation’s vision of Housing for All and are committed to the cause.
