By Accommodation Times News Service
Brotin Banerjee has been instrumental in the success of Tata Housing Development Company Ltd. and mentoring the company to scale greater heights. An exclusive interview with Nimisha Gupta shares the formula of affordable housing and sustainable green developments that has been an ace for Tata Housing
Q1. What is the current market condition for Affordable Housing?
Ans. With economy witnessing a downturn, interest rates and inflation reaching all-time highs, 2013 has been one of the most eventful years for Real Estate in India. While introduction of Real estate regulatory bill and land acquisitions bills in the parliament was positive for the real estate industry, end users sitting on the fence expecting a fall in prices lead to a contraction of demand in the past few quarters.
Real estate sector is expected to stabilize in the next two to three quarters with the Indian economy getting back on track. We would anticipate this sector to grow, albeit at a slightly lower pace, as the demand for housing still appears to exceed supply, and the weakening rupee makes India an attractive real estate investment destination for non-resident Indians. As per the recent industry reports, the sector is expected to grow at the rate of 30 per cent over the next decade. The key reasons responsible for the growth seen in the real estate industry in India include liberalization of Government policies. Furthermore, FDI in multi brand retail will also give a push to the growth in the real estate sector. It will trigger the opportunities for retailers thus leading to an increase in demand for real estate. Ancillary and service industries such as IT/ITes, manufacturing industries which are being set up in tier 2 and tier 3 cities also play an important role for rise in property demand.
Q2. How big is the Affordable Housing market?
Ans. With a shortage of around 24.7 million units and 70% of it in the affordable housing space, we see this growing at healthy rates in next 3-5 years. There is a huge demand for quality residential development across the country and this demand outstrips supply by a large number and would continue to do so until next decade as a large part of Indian population is still un-housed. The data and research done by various institutions clearly points out the huge shortage of affordable home in India, it is this shortage and the need to own a home for the first time buyers will continue to sustain the demand in the value and affordable housing segments.
Q3. What are your future plans and targets in 2014? How you look Affordable Housing segment?
Ans. We have aggressive growth plans for both Tata Housing and Tata Value homes (100 % subsidiary of Tata Housing) and both the companies will continue to expand their portfolios in their respective customer segments. In the premium and luxury segment we aspire to be India’ most preferred brand and in the value & affordable segment we aspire to be India’s largest home provider. As a company on the whole we see Tata Housing as one amongst the top three players in the Indian realty space by 2017. With the huge potential for growth in affordable housing, in 2009-10, we launched a 100% subsidiary of Tata Housing – Tata Value Homes Limited to exclusively focus on value and affordable housing, which is currently developing around 350 acres with develop able potential of 23 million square feet.
Read full interview in current issue of Accommodation Times of 1st February…