In an exclusive interview with Dr Niranjan Hiranandani, Found & CMD, Hiranandani Communities, various aspects of Real Estate markets and development were detailed. He is also President (Nation), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India. In the interview, he emphasized the several schemes and policy which gave a boost to the Real Estate Industry. Dr. Niranjan Hiranandani has bagged many awards, recently Accommodation Times awarded him for ‘Commercial Project of the Year- Olympus TCS’
1) How do Hiranandani Communities foresee Indian Real Estate Market?
The future of the Indian real estate market is promising, with both, Commercial and Residential segments showing potential to play their part in scripting the Indian economy’s success story. It is positive, but the rules of the game have changed – and drastically. The paradigm has changed, the Indian Economy and indeed, real estate have experienced a ‘Systems Reboot’. The new paradigm includes various encouraging initiatives by the government, along with a new regulatory regime. This has completely changed the face of the Indian real estate sector. Initiatives by the Indian Government have created the ideal foundation for real estate to look ahead at a positive future, with the promise of potential growth. The positive effect is becoming apparent as we move ahead, and I feel it will enhance growth for the Indian real estate market.
The positive aspect of the new regulatory regime is largely about streamlining approval processes, simplifying taxation (GST), building institutional capacity, as also introducing urban planning and real estate-related reforms (RERA). Initiatives, such as ‘100 Smart Cities’, the Delhi–Mumbai Industrial Corridor (DMIC) and Pradhan Mantri Awas Yojana (PMAY) offer the perfect platform which will create investment opportunities across projects, across the country. Transparency, financial discipline and customer safety mechanism is in place with reform-led policies comprise the new paradigm. Going into the future, it looks good.
So, to answer the question, how do we at Hiranandani Communities foresee the Indian real estate market, the answer is simple: Indian real estate will build a growth story, based on the ideal foundation which has been created and looks ahead at a positive future. For Indian real estate, the future comes with the promise of growth amidst home seekers getting their ‘dream homes’ while for investors, it should reflect enhanced attractiveness as an asset class.
2) Is Real estate market seeing growth currently?
Yes, and let me share how – beyond the obvious factor of increasing residential real estate demand. The growth in Indian real estate comes from attractive options: commercial spaces have come up as an attractive alternative. In terms of growth trends, if 2017 witnessed commercial real estate doing better than in the past, industry pundits suggest this positive will continue well into 2018 and beyond. These include retail, warehousing and logistics parks.
Given that the new regulatory environment enhances safety and security for investors, new investment options should create newer success stories in Indian real estate investments.
These are large, macro factors, but even at the individual level, the picture, going into the future, is just as positive. In a country where there are other asset classes that offer alternatives to investors, Real estate is back to being preferred option to grow wealth.
The investor protection which the new regulatory regime offers has enhanced its attractiveness as an investment class. Real estate, as an investment class, has always delivered consistent returns to investors and has largely seen repeat investments by investors over the years. As we enter the second half of 2018, I would say Indian real estate is the best asset to invest in, with better ROI in the long run. Obviously, the market is witnessing growth.
3) What is the future real estate of Thane and Panvel?
In one word, ‘excellent’. From urban conglomerations on the periphery of Mumbai to real estate hot-spots that are evolving into global cities, Thane and Panvel are ideal for both, commercial and residential real estate purchase and investment. Thane offers a vibrant lifestyle, it is a city powered by corporate and IT/ITeS sectors. It is a city where infrastructure is excellent, making it an ideal city for corporates re-locating as also consolidating from different locations in Mumbai city and suburbs. Retail in Thane is buzzing, with Malls being the success story while its high-end homes are gaining favour with premium home seekers. If Thane is present-perfect, Panvel is future ready: it has the advantage of multi-modal connectivity, in form of Navi Mumbai International Airport (NMIA), the Jawaharlal Nehru Port Trust (JNPT), the railway junction which links Mumbai, Thane as also the Konkan Railway, with Panvel-Karjat passenger line opening up a closer route to Pune and beyond – plus the inter-state bus terminal.
The Mumbai Trans-Harbour Link (MTHL) will bring SoBo closer to Panvel. Planned transport linkages include metro and railway inter-connectivity, and by the looks of it, in the near future, it will end up being the new centre-point for the Mumbai Metropolitan Region (MMR). In both cities, the potential for future growth is excellent, and Brand Hiranandani offers choice residential and commercial options in both cities for the discerning buyer as also the aspirational buyer.
4) Alibaug real estate is booming right now, tell us the product mix and what are you developing in Alibaug?
On the shores of the Arabian Sea, situated a short distance away from the Mumbai shoreline, Alibaug is a tourist destination which for years has been a sleepy hamlet. This is set to change; Alibaug has the potential to be the socio-cultural and economic hub across Mumbai’s shoreline. One can see the potential for Alibaug to grow into an extended trans-harbour economic hub across Mumbai’s redefined shoreline. This evolution will happen as a result of enhanced round-the-year operational waterways, which will redefine the paradigm of connectivity.
For the space-starved Island City of Mumbai, Alibaug offers the potential to develop into an economic powerhouse. This may shift the balance of power to the ‘triangle golden corridor’ of Navi Mumbai-Panvel-Alibaug. Work and business-related travel from SoBo to Alibaug will become easier and enhanced connectivity will witness a radical shift in economic growth, and what is today’s second home i.e. Alibaug, will soon be a first home location, similar to what happened in the New York-New Jersey scenario.
Alibaug offers luxury real estate options with a global twist: the ‘Riviera Tourism’ concept, which has remained largely unexplored in India. For those looking for options to buy a second home in the Alibaug region, Hiranandani Sands is a premium project where ‘Beach Life Beckons’. Positioned as a community comprising of 43 exclusive villa plots, a project and surrounded by the charm of the Nagaon coast, Hiranandani Sands could be the exclusive beach home for a lifetime.
Hiranandani Sands with its 43 exclusive villa plots is snuggled in the Alibaug region, a picturesque locale surrounded by tropical flora and fauna. It is one of the rapidly developing zones in Maharashtra, which thanks to enhanced year-round connectivity, will also give a fillip to tourism development, especially ‘Riviera Tourism’, which has the potential to create new tourism-based economic development.
5) What you foresee about real estate post RERA?
The Real Estate (Regulation and Development) Act, 2016 (RERA) has brought in transparency and accountability to real estate and enhanced home buyer confidence. The need for RERA stems from persistent complains from home buyers over the years, that real estate transactions were biased and mainly in the favour of the real estate developers. RERA, largely, endeavours to create a more equitable environment and bring about the fairness of transaction as regards sellers and buyers of properties, particularly in the primary market. In that sense, RERA has been implemented with the aim to make real estate purchase easier, by infusing improved accountability and transparency.
Any paradigm change brings about the positive impact which might take some time before advantages become apparent, and Indian real estate will reap the benefits of the various policy initiatives and economic reforms. Indian real estate has undergone a ‘systems re-boot’ that began with demonetization, the legislation on benami properties, RERA Act and, the Goods & Services Tax. Real estate sector will benefit owing to the cumulative effect of reformist and progressive policies. These reforms, in the long term, will surely reinforce trust and enhance assurance among the home buyers and enable healthy growth of the real estate industry in India.
For the home buyer, RERA has brought in lucidity and accountability on part of real estate developers, which has boosted confidence and assurance on part of prospective buyers. And yet, one would not go so far as to already coin it as an accomplishment – it is an achievement that is in the creation, something that is work in progress. We need to see how things work out in the coming months, but at present, I would say the performance of RERA has been encouraging. A lot of work is still to be done in a few states to get the existing and new project registered.