bal­anc­ing sim­plic­ity and op­u­lence

Realty Plus - - Contents -

In­cepted in 1987, Ashok Mohanani started with the con­struc­tion of mod­est stand­alone build­ings in western sub­urbs of Mum­bai. He was joined by his son, Vivek Mohanani, in 2001. From sin­gu­lar build­ings to res­i­den­tial lay­outs across Mum­bai and tier II & tier III cities, Ekta world to­day is a brand to reckon. Vivek Mohanani - MD & ceo at ekta world shares his views on their jour­ney as well as that of In­dian realty.

From a hum­ble be­gin­ning as a Real Es­tate Con­sul­tant to a stal­wart in the to­day’s Real es­tate fra­ter­nity, Ashok Mohanani has achieved it all. He has been in­stru­men­tal in the growth of the or­ga­ni­za­tion and has gone beyond the con­ven­tional and given struc­tures that per­son­ify fi­nesse. Ashok has been the driv­ing force be­hind the me­ta­mor­pho­sis the or­ga­ni­za­tion has had in the re­cent past. EKTA world, con­tin­ues to en­deavor to give the city struc­tures that one can be proud of. Each project is a land­mark and is a mem­o­rable part of the city sky­line; EKTA world has not just built re­mark­able struc­tures but has also built a rep­u­ta­tion that is as solid. EKTA world has sig­nif­i­cantly con­trib­uted to the re­struc­tur­ing and has pi­o­neered con­cepts in the Real Es­tate fra­ter­nity like Vil­las in the Sky, pri­vate plunge pools and el­e­va­tors etc

com­pany’s ge­o­graph­i­cal foot­print and land­mark projects

EKTA world has grown in leaps & bounds with about 20.08 mil­lion square feet of com­pleted and un­con­structed projects and over 14500 happy fam­i­lies that stand tes­ti­mony to our prom­ise of qual­ity, timely de­liv­ery and peace of mind. Famed for its thought­ful plan­ning, marvelous ar­chi­tec­ture and ex­cel­lent ex­e­cu­tion, the group’s suc­cess sto­ries in­clude Lake Homes, EKTA mead­ows, EKTA ter­races, Lake Su­pe­rior, EKTA Em­press, Ec­stasy I & II, & Emi­nente. These are few of the land­mark res­i­dences the group has built over the years.

The group has built choic­est res­i­den­tial com­plexes in the western sub­urbs be­tween Ban­dra & Dahisar in Mum­bai, the up mar­ket NIBM road at Pune and a global res­i­den­tial town­ship near the her­itage site of Pan­dav Leni at Nashik and 16 acres project in Vi­rar- EKTA Parksville. Some of our pre­mium projects in­clude, EKTA Tripo­lis in Gore­gaon West hav­ing lux­u­ri­ous 2, 3-bed­room apart­ments strate­gi­cally lo­cated off link road has been the most sought-after des­ti­na­tion. EKTA Parksville, Vi­rar of­fer its res­i­dents- “The Big City Lifet­syle” en­dowed with all plush ameni­ties like Swim­ming pool, lav­ish club house, open gym, mul­ti­pur­pose court, life size chess and many more. This par­tic­u­larly catered to the mid­dle-in­come group and el­e­vated their stan­dard of liv­ing to that of the big city lifestyle. Uber lux­u­ri­ous, projects EKTA In­vic­tus in Dadar, EKT Trin­ity in San­tacruz and West­bay in Ban­dra of­fer scenic life to its crème de la crème cus­tomers.

What are the Pros and cons of Rera for de­vel­op­ers as well as buy­ers?

RERA is touted as the har­bin­ger of change and is en­acted with the pur­pose to make op­er­a­tional & process rules and cre­ation of in­sti­tu­tional in­fra­struc­ture for pro­tect­ing the in­ter­ests of buy­ers and pro­mot­ing the growth of real es­tate sec­tor in an en­vi­ron­ment of trust, trans­parency, cred­i­ble trans­ac­tions and timely ex­e­cu­tion of projects. Per se there aren’t any disad­van­tages, since the premise of hav­ing such a law was to curb all un­de­sirous mal­prac­tices and elim­i­nate du­bi­ous de­vel­op­ers. More­over, con­sol­i­da­tion among de­vel­op­ers as well as large land own­ers is likely due to sub­dued mar­ket con­di­tions, with smaller play­ers ex­pected to look for av­enues for fund­ing. It has cre­ated a lev­eled ground for cred­i­ble de­vel­op­ers. Fur­ther­more, as per the Law, they have ringed fenced projects fi­nan­cially i.e. 70% col­lec­tions is de­posited in a ded­i­cated RERA ac­count. All per­ti­nent in­for­ma­tion is also up­dated on the web­site, such as Units sold, lit­i­ga­tions, ti­tle cer­tifi­cate, ameni­ties, com­ple­tion date etc. hav­ing all this in­for­ma­tion at a click of a but­ton has fa­cil­i­tated con­sumers to make in­formed de­ci­sions.

with af­ford­able hous­ing get­ting in­dus­try sta­tus, how com­mer­cially vi­able is this seg­ment for de­vel­op­ers?

Like Lux­ury, af­ford­abil­ity per se is non-spe­cific, and the ac­tual mean­ing would change with the con­text, level of eco­nomic de­vel­op­ment and in­come lev­els. The gov­ern­ment’s fi­nan­cial and fis­cal pol­icy mea­sures cou­pled with reg­u­la­tory sup­port could con­vert the in­creased de­mand for af­ford­able hous­ing into a com­mer­cially vi­able op­por­tu­­ford­able hous­ing in­dus­try sta­tus has been an im­por­tant step in en­sur­ing that our Hon­or­able Prime Min­is­ter Vi­sion of Hous­ing for All 2022 is achieved. Af­ford­able hous­ing fi­nance is es­ti­mated to be a 6-lakh crore busi­ness op­por­tu­nity by 2022. It re­flected a growth of 27% be­tween Jan­uary to Septem­ber 2017 (y-o-y). Out of the to­tal sup­ply, the share of hous­ing sup­ply in the Hous­ing seg­ment with cap­i­tal value be­low INR 4,000 per sq. ft has in­creased to 28% in 2017 from 23% in 2016. It would be pru­dent to say that af­ford­able Hous­ing seg­ment is on an up­swing, the re­cent growth in the sec­tor can be at­trib­uted to the mis­sion-mode im­ple­men­ta­tion of the PMAY-HFA; af­ford­able hous­ing’s new-found in­fra­struc­ture sta­tus; as well as much-im­proved in­flow of for­mal credit (NBFCS and banks) to the seg­ment. Fur­ther­more, profit linked in­cen­tive gets 100% de­duc­tion in re­spect of the profit or gain de­rived from de­vel­op­ing or build­ing low cost hous­ing, (projects ap­proved after 1.6.2016 but be­fore 31.03.2019). Some of the other fis­cal in­cen­tives are re­duc­ing the hold­ing pe­riod of three years to two years for cat­e­go­riza­tion of the prop­erty as long-term as­sets. Goods and Ser­vices Tax (GST) has been re­duced to ef­fec­tive rate of 8% in cases of fol­low­ing cat­e­gories like, Low cost houses up to the car­pet area of 60 sqm per houses un­der the ‘scheme of af­ford­able hous­ing in part­ner­ship’ framed by the Min­istry of Hous­ing and Ur­ban Poverty Alle­vi­a­tion and low cost houses up to the car­pet area of 60 sqm per house un­der the af­ford­able hous­ing is a com­po­nent of the hous­ing for all ur­ban mis­sion/- PMAY

Real es­tate mar­ket­ing has un­der­gone a par­a­digm shift post the three-pronged trans­for­ma­tion, namely de­mon­e­ti­za­tion, Rera & Gst along with other pol­icy changes, al­beit, the im­pact is wan­ing off.

Brief on your sales & mar­ket­ing strate­gies

Prop­erty mar­ket­ing rou­tinely in­cludes mar­ket re­search, con­sumer in­sights, brand­ing, lead gen­er­a­tion, post sales mar­ket­ing ini­tia­tives among oth­ers. Post RERA, it is manda­tory that de­vel­op­ers have all ap­provals and RERA reg­is­tra­tion in place prior to mar­ket­ing the project. Larger than life im­agery and in­ac­cu­rate in­for­ma­tion is now pun­ish­able un­der the Act, hence it is im­per­a­tive that all com­mu­ni­ca­tion and mar­ket­ing col­lat­er­als are fol­low­ing the norm and de­void of mis­rep­re­sen­ta­tion. Chan­nel Part­ner’s con­tri­bu­tion has in­creased man­i­fold and with reg­is­tra­tion too in RERA has clearly made them more pro­fes­sional and man­date ori­ented. There are oc­ca­sions when de­vel­op­ers give chan­nel part­ners ac­cel­er­ated in­cen­tive pro­grams along with pref­er­en­tial pric­ing for lim­ited pe­riod. Such pro­grams drive them to per­form and achieve tar­gets within stip­u­lated time-lines. They are an ex­tended sales arm for de­vel­op­ers. Re­fer­rals too sig­nif­i­cantly con­trib­ute to the sales pipe line. Cus­tomer ser­vice and re­la­tion­ship man­age­ment is of para­mount im­por­tance, there is move­ment from mere trans­ac­tion-ori­ented re­la­tion­ship to more ful­fill­ing ser­vice-ori­ented re­la­tion­ship. This re­la­tion­ship con­tin­ues beyond project de­liv­ery and pos­ses­sion and tran­scends to al­most fa­mil­ial bonds.

With the ease of fund­ing norms how do you see the in­vest­ments in real es­tate chang­ing.

The year 2017 can be best de­fined as a land­mark year for the in­dus­try as var­i­ous game chang­ing reg­u­la­tory devel­op­ments and struc­tural re­forms in­clud­ing RERA, GST and in­dus­try sta­tus to af­ford­able hous­ing, were rolled out. Like­wise, 2018 & 2019 will be the year of large-scale con­sol­i­da­tion of de­vel­op­ers and bro­kers, re­sult­ing in a drop in un­sold in­ven­tory. Gov­ern­ment’s push in pro­mot­ing af­ford­able hous­ing will con­tinue. Pri­vate Eq­uity in real es­tate is es­ti­mated to rise tak­ing the cu­mu­la­tive in­vest­ments to US$ 100 Bn by 2026. The next 10 years will at­tract a high amount of PE for the sec­tor ow­ing to some strong growth points. The es­ti­mated growth for PE in real es­tate will be at 10% CAGR with Tier 1 and Tier 2 cities be­ing the prime ben­e­fi­cia­ries of the the past 12 years, In­dia has seen in­vest­ments of US$ 42 Bil­lion. “Given the re­newal of the sec­tor with new pol­icy changes bring­ing in trans­parency, ma­tu­rity of the mar­kets and the an­tic­i­pated growth in the sec­tor, the next 10 years is ex­pected to see in­vest­ments to the tune of US$ 58 Bil­lion.”

How do you feel the new Mum­bai dp plan will im­pact the realty de­vel­op­ment of city?

With the Mum­bai De­vel­op­ment Plan 2034 un­mark­ing 3,700 hectares of land that was ear­lier des­ig­nated as no-de­vel­op­ment zone (NDZ) for con­struc­tion of res­i­den­tial real es­tate and terming them as Spe­cial De­vel­op­ment zone. with more hous­ing stock get­ting added in the af­ford­able cat­e­gory, prices may cor­rect by 5 to 6 per cent but this is pos­si­ble only if the in­creased FSI, promised un­der the blue­print for the city’s de­vel­op­ment for the next 16 years, is avail­able at ra­tio­nal prices and not at a pre­mium. Un­der the new De­vel­op­ment Plan, over 3,000 hectares of land would be avail­able for build­ing af­ford­able houses after un­lock­ing the NDZ land. Apart from this land, an ad­di­tional 300 hectares of salt pan land will also be avail­able for af­ford­able hous­ing. About 10 lakh af­ford­able houses will be built on these lands by 2034. Once im­ple­mented, the new Mum­bai DP is ex­pected to sig­nif­i­cantly al­ter the city’s real es­tate land­scape. Pro­vi­sion of ad­di­tional FSI for both com­mer­cial and res­i­den­tial seg­ments is ex­pected to re­lease ad­di­tional sup­ply across var­i­ous pock­ets in the city. The rise in FSI and in­fu­sion of fresh land, as en­vis­aged by the DP, will help ac­com­mo­date more pop­u­la­tion into the is­land city, even though the city is al­ready burst­ing at its seams with a pop­u­la­tion den­sity of nearly 20,000 peo­ple/sq. km. “As a premier realty com­pany, we have cho­sen to fo­cus on res­i­den­tial devel­op­ments in MMR across gen­res i.e. af­ford­able, pre­mium cat­e­gory, lux­ury and uber lux­ury homes. In the last few years we have suc­cess­fully com­pleted over one mil­lion square feet on an an­nual ba­sis and in the com­ing years we want to dou­ble this fig­ure. We are ac­tively pur­su­ing ac­qui­si­tions in the most sought-after lo­ca­tions in Mum­bai like Mahim, Ban­dra, Khar, Chem­bur, Oshi­wara, Vi­rar etc. All these up­com­ing projects will pan across gen­res of res­i­den­tial devel­op­ments that will fuel ac­cel­er­ated growth.”

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