Rai Umraopati Ray interviews Pradeep Jain, Chairman, Parsvnath Developers on prevailing trends, challenges, projects, developments and demographics of the Indian realty industry and what lies in store for the sector.
What is the status of the real estate sector in the country?
The sector has witnessed a revolution and has come of age, with corporatisation and listed companies. The sustained high growth rate of GDP and increasing GDP per capita in the country, the huge demographic shift being witnessed in the country, urbanisation, rising income levels of a growing middle class along with the increase in nuclear families, low interest rates, modern attitudes to home ownership and a change of attitude amongst the young working population from that of 'save and buy' to 'buy and repay' have all combined and is boosting demand in the arena. The demand for real estate is outstripping the supply of real estate in almost all the economic hubs in the country.
What is the future (trends and growth) of the realty sector and its potential?
With the entry of global realtors in conjunction with national players, the sector is poised to experience a landscape change. Given the boom in residential housing, IT, ITeS, organised retail and hospitality industries, this industry is likely to see increased investment activity. With the economy surging ahead, the demand for all segments in the real estate sector is likely to continue to grow. Development is extending to Tier-II and Tier-III cities, making them preferred places for future realty prospects.
How is the Delhi and NCR placed as far as realty development is concerned in the country?
NCR along with the national capital is a prime economic zone of India. A great historical past, gateway to the northern India hill stations, excellent national and international connectivity makes the region one of the most favoured destination for trade, commerce and tourism.
Some of the most ambitious real estate projects in India are centred in the NCR region. Renewed focus on infrastructure, widening of national highways and expressways, the launch of the Delhi Metro Project and growth of the IT/ITES sector have also contributed to the boom in the real estate sector which had led to increased business trips to the capital.
To meet the long-stay demand from the corporate segment, service apartments have mushroomed in the NCR at a frenzied pace. . The growth of the industrial and service sector in the NCR has led to a surge in demand for star category hotels and this has had a positive impact on the hospitality business.
What are the issues and challenges before the sector?
Urban planning is the single biggest challenge for our cities. It is imperative that our urban infrastructure keeps pace with our economic growth. Land acquisition reforms also offer many challenges. Rising costs due to high taxation and land prices is one of the biggest challenges.
What is the position of the Indian real estate sector in comparison to the realty industry of developing and developed nations?
The scenario is broadly in line with realty development in other developing nations. India however has an advantage because of its near double digit growth year over year which is spurring the economic activity in the country.
While aligning ourselves with the trends we certainly need to adopt best practices and technology from developed countries while retaining our forte and living style.
Please mention the HR trends in real estate sector
The Indian real estate sector is seen as one of the fastest growing and promising sectors especially when many developers are heading towards making their businesses from being known as local players to regional to pan India operations, in all residential, commercial and infrastructure verticals.
Such corporatisation has triggered off a complete change in the management practices and workforce trends of this sector. The sector has absorbed high rated professionals into its cardre and is adopting IT based decision support systems.
Organised and professionally managed projects are the need of the hour and the remuneration has become competitive.