Raipur, May 18: The ready-to-use housing market is at present in demand in real estate sector and mid segment client in the range of Rs 30-50 lakh. Those, who are need based clients and floating population, are investing in real estate sector right now, said Kishore Virani, MD, Vinayak Homes and JV Realty while speaking to this newspaper. The mid segment residential project with modern amenities, gated community, good society, club house and infrastructure at prime locations is now the first choice of the customers and investors, he added. The aspiration for a better standards of living and the economic growth over the last decade is a great factor which has created this demand, said Kishore. People now prefer well developed projects at good locations and even if it comes at a cost, they are investing in the project. After demonetisation and GST there was impact on real estate sector but it is showing better improvement from past one year, said Kishore. After demonetisation and RERA the slowdown was witnessed in real estate sector which has halted the launch of new residential project in the market, the builders and real estate developers were clearing the old inventories. Almost the old inventories have now cleared up and after the completion of RERA formalities; I think real estate sector will get a boom in the coming days, added Kishore.
After completion of his M.Com degree, Kishore joined the Finance and Automobile sector in 2002-03 and continued for 5-6 years. He ventured into real estate sector in 2008 and was involved with various residential projects in city. Regarding the challenges faced by Realty Sector, Kishore said that earlier people use to invest in real estate and gets good returns but in between due to market slowdown investors have not got expected return as a result the trend towards investment in real estate sector was down. Kishore said that people invest in real estate sector to get good returns. As RERA was not implemented the builders delay the projects resulting in investor loosing the charm towards the project. After the implementation of RERA, builders and developers will be bound to finish the project within the specified time. Earlier the amenities used to be mismatch which irked the customers but now builders will have to fulfill what they commit. Even though the real estate rates will go up but if the investment is done in a planned way, customers can expect good returns as compared to other sector, he said. Mid segment residential project will give good return as compared to other segment. In luxury segment there will be limited buyers restricted up to 2-3% but the mid segment in the range of Rs 30-50 lakh will get good response with buyer’s ratio of 70-80%.
The Government’s motivation and subsidy to affordable housing sector is also a good move for the investors as it fulfills the dream of owning a house. Today with easy EMI option and improved purchasing power, people are now investing in their dream home instead of paying the rent, he said. Now mid segment residences are available at affordable prices which ensure quality living.
The companies must makes sure that all the approvals required for the development of the project are in place so that the buyers do not face any problems while applying for a loan.
Due to government initiatives and banking support the real estate sector will witness good growth in the coming days. After implementation of RERA the sector will be more transparent now. On expectations from government, he said that there should be speed and clarity in the approval and regulatory process. The approvals should be made easy with single window system as the project cost will reduce providing more benefit to the customers. Other initiatives like Solar Energy and Waste Material Management, government should support the builders in implementing this to build the concept the green buildings.