Hous­ing De­mand In Ncr To In­crease

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With the vi­sion to de­velop over one lakh af­ford­able hous­ing, Sig­na­ture Global plans to be part of the ‘Hous­ing for All’ ini­tia­tive. Pradeep Ag­gar­wal, chair­man, Sig­na­ture global shares his views on im­pact of var­i­ous re­cent de­vel­op­ments in the realty sec­tor.

Sig­na­ture Global (In­dia) Pri­vate Lim­ited was for­mu­lated in the year 2000, as one of the key stake­hold­ers of SMC Group, the lead­ing fi­nan­cial in­vest­ment group of In­dia with pan In­dia pres­ence. The com­pany plans to come up with sev­eral real-es­tate projects across the coun­try in com­ing years. It has en­vis­ages 1,00,000 units by 2022. In this fi­nan­cial year, the com­pany aims to con­struct 20,000 units un­der af­ford­able hous­ing pol­icy in Gu­ru­gram, Delhi, Mum­bai, Kar­nal, Ghazi­abad, Luc­know and Au­rangabad.

Q What will be the im­pact of Delhi’s land pool­ing pol­icy on NCR realty mar­ket?

Ma­jor­ity of dis­tricts un­der the NCR radar are Tier II cities where slum dwellings are quite prom­i­nent. With Land Pool­ing Pol­icy in place, the sub­urb re­gions will get de­vel­oped. The dream for a ‘Pakka Makaan’ is also on the way for as many as 50,000 units for the EWS cat­e­gory. NCR realty map in gen­eral might get heav­ily af­fected as price correction will be­come ev­i­dent in the long run. With grow­ing ur­ban­iza­tion, de­vel­op­ers might re­duce the prop­erty prices to stay in com­pe­ti­tion.

Delhi is al­most sat­u­rated with not many land parcels avail­able for fu­ture de­vel­op­ment but the de­mand in the NCR has al­ways been there due to the de­vel­oped in­fra­struc­ture and job op­por­tu­ni­ties, cou­pled with con­nec­tiv­ity with ma­jor cities. Thus, Land Pool­ing Pol­icy will bring in a fresh sup­ply to the real-es­tate mar­ket of Delhi. On the other hand, high land prices in Delhi will mean higher prop­erty prices once de­vel­oped which can be down­side for many cor­po­rates and MNCS en­ter­ing into the mar­ket. With large num­ber of of­fice and re­tail spa­ces present in nearby NCR, peo­ple who wish to stay closer to their of­fices will end up buy­ing units in NCR only.

Q How does RERA change the mar­ket dy­nam­ics?

In­dian real-es­tate sec­tor will shape up in a dif­fer­ent man­ner now. With a reg­u­la­tor in place to safe­guard the in­ter­ests of the buy­ers and pro­mote fair deal­ings in the sec­tor, the hous­ing de­mand will gain mo­men­tum which will al­low bet­ter per­for­mance of the sec­tor. The ex­ist­ing un­sold in­ven­tory is also fore­casted to clear in the next 30-36 months as buy­ers want to in­vest in prop­erty be­fore the in­tro­duc­tion of RERA and GST that will in­crease the prop­erty prices in short term. Low­er­ing of home loan in­ter­est rates has also en­cour­aged the buy­ers.

Q With the cur­rent pric­ing, is af­ford­able hous­ing a re­al­ity in NCR?

Af­ford­able Hous­ing is an en­tirely dif­fer­ent con­cept that should not be mixed up with reg­u­lar prop­er­ties of low prices. These prop­er­ties can be cat­e­go­rized as bud­get units as clearly de­fined by the Gov­ern­ment. Af­ford­able hous­ing has been picked up ex­ceed­ingly well by the de­vel­op­ers across the coun­try with NCR be­ing the big­gest con­trib­u­tor at present. Al­though, for the sec­tor to of­fer ‘Af­ford­able’ pric­ing, sub­si­dized land prices and re­duced rate of in­ter­est on home loans be­come im­per­a­tive.

the gov­ern­ment must work to­wards en­abling the pri­vate sec­tor through im­por­tant de­ci­sions such as, in­dus­try sta­tus, Sin­gle win­dow clear­ance and smooth im­ple­men­ta­tion of Rera & gst across the coun­try.

PRADEEP AG­GAR­WAL

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