With over two and a half decades of experience, Salarpuria Sattva is one of the leading names in the Indian real estate sector. We had an opportunity to interview Bijay Agarwal, Managing Director of Salarpuria Sattva.
In an exclusive interview, he spoke about the current real estate market, the company’s expansion plans, and much more.
Here are the excerpts.
How is the Indian real estate market positioned currently?
After a period of uncertainty in view of demonetisation, the introduction of GST, and RERA, Indian real estate is now heading towards stability.
In terms of transactions for developers, though the volumes are yet to catch up to the 2015 levels, there is a remarkable improvement in other sectors, which will contribute to long-term sustained growth.
A recent research report revealed that the inflow of international capital into the real estate market increased by 31% to $2.6 billion in 2017. Another report revealed that High Net Worth Individuals (HNIs) are gradually enhancing their portfolio exposure to the real estate sector. These developments clearly demonstrate that the slew of initiatives launched by the government to streamline the sector has increased the confidence of the investors.
Meanwhile, a stable economy is contributing to the growth of the real estate sector, both residential and commercial. Inter-city and rural-urban migration continue to propel demand for housing.
What are your expectations from the new government in Karnataka?
Successive governments have been progressive in their approach and we expect this government to continue the same. With respect to Bangalore, we hope the infrastructure projects will get fast-tracked to decongest the city.
There are indications of satellite towns being planned for Bangalore, and this is the right direction, as it will further boost residential and commercial real estate.
Homebuyers are sceptical about developers’ professionalism in India. What are the reasons for this?
Do you think recent policy changes like RERA and GST have been a success in instilling confidence in buyers?
The scepticism about developers’ professionalism in India may be restricted to a few players, especially related to the pre-RERA era. Some big names, along with regional developers, may have contributed to this perception. But for tier-I developers, the perception among buyers has improved significantly following RERA and GST.
Greater accountability, transparency and clarity, and commitment are what home buyers look for among developers.
These initiatives have definitely instilled confidence among buyers, who are now exploring multiple options.
What are your views on Housing for All by 2022? How does Salarpuria Sattva fit into it?
The ‘Housing for All by 2022’ is a revolutionary and game-changing vision for India.
Salarpuria Sattva is primarily known for premium and luxury residential development, along with commercial portfolios.
However, we are also entering into budget homes with the launch of three large-scale affordable housing projects towards the end of this financial year.
Housing being the basic need of any family, we wish to contribute to the vision of our government PMAY mission. We will continue to plan and execute a number of affordable housing projects with this concept.
What is your market differentiator?
We have been in the real estate sector for the last 27 years, and we couldn’t have completed 24 million sq. ft. without building trust, which is our driving force.
Our customers still vouch for our quality and reliability, as quality, reliability, consistency, innovation, and stability are some of the prime movers of building their trust and satisfaction.
We have also obtained one of the highest financial ratings of “A/stable” from CRISIL.
How do you expect the second half of 2018 to be? Which cities are you planning to launch your projects?
The Indian real estate market is recovering in 2018, and we expect the second half of the year to see greater stability. The present momentum will continue in the volume housing segment and affordable housing, as homebuyers continue to explore various options.
The residential sector will continue to perform positively, as there is adequate inventory in all the major metros to meet the demand.
The market is also optimistic; as more genuine homebuyers are looking for homes from an owner-occupier perspective.
At present, we are present in seven cities in India. We will be primarily focusing on new projects in Bangalore and Hyderabad in this financial year. Soon, we also plan to launch more projects in Mumbai and Pune.
Do you think this is the right time for homebuyers to take the plunge?
This is the most appropriate time for homebuyers to pick a property in any of the metros. RERA is in place, and banks are offering home loans at interest rates that are affordable.
For salaried employees, conditions are ripe because there is a good supply of ready-to-move-in homes across the major metros.
Lastly, your advice to our readers
As people say, one should invest money into something which would grow over a period of time. With the track record of real estate, one should invest money into this sector to yield better returns.