Attractive, smart schemes for NRI buyers

India Post News Service

NEW DELHI: Raheja Group, one of India’s oldest and reputed real estate business houses, directly employs over 1200 employees. Raheja group of companies was created in the year 1990 by Mr. Navin Raheja, the self-made entrepreneur. The group has grown exponentially, not only in real estate development but the company now covers a range of business ventures which include construction, manufacturing, financial services, retail and wholesale, software and movie production. Operating throughout NCR, the company has created a well-established presence in every vertical.

In an e-mailed interview, Mr Naveen Raheja, CMD, Raheja Developers, Pvt, Ltd., speaks about the impact of demonetization and other issues connected with real estate. The following are edited excerpts:

Demonetization:

Demonetization will boost the image of the real estate sector. It will help it discard the image of a prejudiced segment, inducing more genuine people to buy homes and properties of their choice. Affordable and mid segment will remain unaffected. It will benefit developers who believe in practicing fair dealings and do not deal in cash/black money transactions.

Primary market is not affected at all by demonetization as developers are selling their properties through maximum banks loans. On the other hand, secondary market where cash transactions are involved, is hard hit to due to shortage of cash, resulting in price fall for categorized homes across India.

Prices in the secondary market will go down up to an extent as there will be fewer cash transactions. The people have to identify the difference between primary and secondary market. Primary market is not affected at all by demonetization as developers are selling their properties through maximum banks loans. On the other hand secondary market where cash transactions are involved is deficiently embellished due to shortage of cash resulting in a price fall for the categorized homes across India.

Scope for NRIs

The market for NRIs has become more lucrative as the prices have gone down compared to the prices before demonetization.

Looking at the current scenario and policies made by the government, the market will be led by developers with an intention to deliver on time making the investments safer in the country.

There is a lot demand of commercial investments in the NCR region along with office spaces in the other cities like Bangalore, Ahmedabad, Pune etc along with tier-2 and tier- 3 cities. Return on Investment is always on the higher side as we are expecting lot of foreign brands and companies to foray in the Indian market.

The current trend is of affordable housing. The developers are offering world class amenities nominal prices. As the Government has given infrastructure status to affordable housing which was long pending making the most preferred category amongst buyers.  Raheja Maheshwara and Vanya are to great options located at Gurgaon,  in affordable housing and are the greenest project with all amenities to attract buyers.

USPs of Rahejas projects

Rahejas are known for their premium products. We in our projects use latest technology with association with world class companies like Arabtec, Larsen and Toubro. Other than this our projects’ architecture as well as proximity makes it unique.

• We have an track record of on time delivery till date of all 11 delivered projects namely; Raheja Atharva, Vedaanta, Navodaya, Sampada,

• We also have projects catering to affordable luxury housing; Raheja Maheshwara and Vanya located in Gurgaon give you best of amenities at affordable prices.

• We do international tie-ups with industry specialists like Arabtec, Versace to meet international standards. Raheja Revaanta gives you premium residences with luxurious tiled floor to engineered wooden floor. Luxurious tiled floor gives you the possibility to imagine and build original and unique environments.

• Another USP is that all our projects are in the green area, taking care of environment. One such project Aranya City is fully integrated smart green township spread over 200 acres and is strategically located in Sohna, the south of Gurgaon, in Sec-11& 14, surrounded by the Aravallis. This township is having a mix of group-housing condominiums, penthouses, designer homes, plots and villas. It is designed to be the first Smart Green City in the private sector with features like solar power generation, rain water harvesting, solar street lighting, waste management systems, water recycling systems designed for zero discharge.

Following are some Questions from Realty Supplement:

1. What are the Major impacts of demonetization on Real estate?

Year 2016 bought some significant changes with demonetization and RERA. Demonetization in layman’s language means the act of removing a currency unit of its position and losing its status as legal tender for exchange. Since November 8, 2016, when Mr. Narendra Modi, Prime Minister of India addressed the nation, the country has been divided into two. One supports the decision and proclaims this as a historic move to curb corruption and the other believes it to be a decision to make things worse for the common man.

The effect of demonetization on the real estate industry has been seen as the banks have cut down on interest rates of loans. Less money to disperse in the economy led to higher interest loans. Since the banks now huge deposit base with so much money flowing into the bank accounts of people, it can lend money to a large number of people and at a lower interest rate. Liquidity in banks improve, banks will be compelled to lend aggressively.

The demonetization drive will prove to be an image booster for the real estate sector. It will make the sector come out of the image of a prejudiced segment inducing more genuine people to buy homes and properties of their choice. Affordable and mid segment will remain unaffected by this decision. The decision is a boon for organized buyers and authentic buyers. The demonetization drive will benefit those developers who believe in practicing fair dealings and do not deal in cash/black money transactions.

2. What kind of process filtration you expect due to demonetization in the current scenario?

The people have to identify the difference between primary and secondary market. Primary market is not affected at all by demonetization as developers are selling their properties through maximum banks loans. On the other hand secondary market where cash transactions are involved is deficiently embellished due to shortage of cash resulting in a price fall for the categorized homes across India.

3. Will property prices go down after demonetization in India? If yes, how?

As I had mentioned, the prices in the secondary market will go down up to an extent as there will less cash transactions. As mentioned earlier also, the people have to identify the difference between primary and secondary market. Primary market is not affected at all by demonetization as developers are selling their properties through maximum banks loans. On the other hand secondary market where cash transactions are involved is deficiently embellished due to shortage of cash resulting in a price fall for the categorized homes across India.

4. Demonetization Brings Happy Days for Residential Property Buyers?

It’s a positive move as the prices are stable and will open the door for the unsold inventories with the developers. Also developers are floating attractive schemes for the potential buyers which will provide a handsome deal or package to them.

5. What should any NRI keep into consideration while Investing Back Home?

NRI or any other potential customer must check the credentials of the developers as in the delivered project, ongoing project, project status along with the time frame of the hand over. We believe that the customer has to understand his requirements like budget, location, amenities what he is looking for as it will fasten the buying decision.

The market for NRI has become more lucrative as the prices have gone down as compared to the prices before demonetization.

6. Do Indian Developers delivering Realty at par with the quality available oversee?

I must say that in the current scenario, the Indian developers are bringing loads of new techniques to fasten the construction without compromising the quality. Following the building norms and working with renowned team of architects and contractors made the developers to deliver quality product. We at Rahejas have also tied up with the makers of Bhurj Khalifa, Arabtec. Also talking about the technique we use precast technology for fast construction without compromising on quality of the product.

Amenities like infinity pool, sky beaches and jogging tracks, open area gym are special highlights to match up with international standards. Tie ups with international brands like Versace for architecture and interiors are unique features to attract international buyers.

7. How safe is Real Estate Investment in India today after such a big jolt to the Industry?

Investment in real estate is always considered the top most priority in India after gold. Looking at the current scenario and policies made by the government, the market will be lead by the developers with an intention to deliver on time making the investments safer in the country.

8. India’s Real Estate Market: Time for the bubble to burst! What are your views on this statement?

Indian Real Estate market has matured over the years as prices are at realistic level. The dream of buying a house is much easier than before as the prices are affordable now.

9. Scope for NRIs to Invest in Commercial Properties in India, what kind of Returns they may expect after Market Corrections?

There is a lot demand of commercial investments in the NCR region along with office spaces in the other cities like Banglore, Ahmedabad, Pune etc along with tier-2 and tier- 3 cities.

The ROI are always on the higher side as we are expecting lot of foreign brands and companies to foray in the Indian market.

10. What are the Initiatives Government is taking to boost Foreign Investment in Indian Realty Market? What are your suggestions?

Demonetization is the latest in a series of moves taken by the government in the last few years. The others include the introduction of the Real Estate Regulatory Act (RERA), improving the policy framework for real estate investment trust (REIT) regulations and liberalizing the foreign direct investment (FDI) policy. These moves will make India more attractive for foreign investors and developers, as transparency is important. Earlier, they were competing with local developers and it was not a level playing field. This will send out a positive message about India to the world, with its move towards a transparent economy.

11. What is the current trend in Real estate in your region?

The recent trend is of affordable housing. The developers are offering world class amenities nominal prices. As the Government has given infrastructure status to affordable housing which was long pending making the most preferred category amongst buyers.  Raheja Maheshwara and Vanya  are to great options located at Gurgaon,  in affordable housing and are the greenest project with all amenities to attract buyers.

We have received an overwhelmed response for the project and we are coming up with more such projects in future.

12. What are the major USP’s of your project? Why do you feel that it could be the trend setter in your region?

Rahejas are known for their premium products. We in our projects use latest technology with association with world class companies like Arabtec, Larsen and Toubro. Other than this our projects architecture as well as proximity makes it unique.

• We have an track record of on time delivery till date of all 11 delivered projects namely; Raheja Atharva, Vedaanta, Navodaya, Sampada,

• We also have projects catering to affordable luxury housing ; Raheja Maheshwara and Vanya located in Gurgaon gives you best of amenities at affordable prices.

• We do international tie-ups with industry specialist like Arabtec , Versace to meet the international standards. Raheja Revaanta gives you premium residences with the luxurious tiled floor to engineered wooden floor. The Luxurious tiled floor celebrates the decoration, tradition, re-interpreting it through innovative decoration techniques. Luxurious tiled floor give you the possibility to imagine and build original and unique environments.

• Another USP is our all projects is the green area. All our projects take care of green environment. One such project is Aranya City is fully integrated smart green township spread over 200 acres and is strategically located in South of Gurgaon, Sohna in Sec-11& 14, right in the lap of the nature surrounded by Aravallis. This township is having a mix of group-housing condominiums, penthouses, designer homes, plots and villas. This township is designed to be the first Smart Green City in the private sector with features like solar power generation, rain water harvesting, solar street lighting, waste management systems, water recycling systems designed for zero discharge

13. What kind of special support you are getting from the Indian Banks facilitating the home loan for NRI’s?

14. Do you offer some special schemes and incentives targeting NRI’s?

Yes we do have offers and initiatives but they keep changing time to time.

15. What is your opinion on the future of Real Estate in India?

Well the future of real estate in India is bright as we have got infra status to “affordable housing.” The dream of owning your own house is now become true with plenty of options.