Interview: Single window nod has still not materialized-Bhushan Nemlekar-Sumit Woods Ltd

The demand is coming back to the real estate market and the developers are witnessing lot of footfalls and queries from buyers. Ready to move properties are in demand and the fence sitters are also adding to the total number of buyers. But the long standing demand of real estate developers of single window clearance has not been met so far. In an exclusive interview with, Bhushan Nemlekar, Director, Sumit Woods Ltd talks about various aspects of the real estate indsutry right now. Here are the excerpts: 

Q) What are the expectations from the festive season this year? Will it be at par with last year?

With opening of economic activities, we see renewed interest coming back in real estate market. Ready possession homes are in demand and lot of customer are looking for ready possession properties. The real estate industry has hopes with this festive season as many reputed developers are taking efforts to win back their customer’s confidence. For Dussehra and Diwali, developers have rolled out many offers and discounts to lure buyers making it an opportunity for all the fence sitting customer to grab the best possible deal available in the industry. We see a positive demand this festive season as compared to the previous year.

Q) What are the expectations from 2021?

Though the impact of novel Covid 19 on real estate sector has been severe this year but gradually we see an uptick in the demand of sales due to plenty of initiatives taken by Maharashtra Government to spur the growth. Current scenario is getting better each day for the sector and I feel 2021 will be much better and a lot of pick up in real estate will take place. Much thankful to the government as I see home loan rates at historically low in last 15 years that will help boost the confidence of the fence sitters. We also expect the job market to stabilise soon that will result in bringing back the majority of service class customers who contributes the highest to the demand for affordable segment. Overall, we expect the sector to develop much faster in 2021.

Q) When can we see consolidation in the Indian real estate industry in major way and how bad/how good will it be?

Nowadays, we have been witnessing a lot of consolidation happening among the developers especially in major cities to create a strong foundation for themselves in the Indian real estate industry. Developers are joining hands and collaborating to form joint ventures, monetising land and extending development management contracts across large areas. Such consolidation maintains drives the ability to maintain cash flows leads the project to benefit on the execution and marketing front. We have noticed a rise in development management opportunities among the stronger brands that will do better in the current market scenario. We will see professional and efficient developers doing really well in coming years.

Q) What are the changes required from the governments’ side that will remove bottlenecks and give further boost to the sector?

The Government has already provided a GST relief to the real estate sector. Rationalization of taxes is another important issue as the Government has to decide either between GST or stamp duty as they cannot charge on same product. Also, single window clearance is a long pending demand for real estate which has still not materialized on ground. Although the online approvals has become faster but the cost of buying home has to come down by the reduction in premium and charges. Hope the Government will come with a positive outcome on the above-mentioned points.

Sumit Woods Ltd is realty player operating in Mumbai and Goa markets.  It has been focusing on budget homes for mid-income and low-income groups. It has completed 60 residential and commercial real estate projects including 9 re-development projects and handed out 5,000 homes so far.