Real estate sector was more prepared in second wave: Sachin-Rise Infra
The The vaccination drive is also instilling confidence in people as more than 5% of the population have been fully vaccinated, says Sachin Gawri, CEO-Founder, Rise Infraventures Ltd. In an exclusive interview to Realtyninfra.com, Gawri talks about various aspects of the industry. Here are the excerpts:
Ques 1 With the third wave expected in the coming months, do you think there will be any impact on the real estate segment?
After the initial shocks in April and May, the economic activities across sectors have picked up in June 2021 amid the falling infections and gradual relaxations in lockdowns which is vital to boost confidence in employment and income stability, factors vital to increase demand. The vaccination drive is also instilling confidence in people as more than 5% of the population have been fully vaccinated, which accounts for around 6.82 crore people.
Unlike the first wave, the real estate sector was prepared during the second wave, which resulted in arresting the drastic downward graph of sales. If the third wave comes, the sector will not be affected much as the country is prepared with the vaccination drive and the necessary infrastructure to curtail the ill effects. Positivity comes from the fact that people have started to look at real estate to stabilize the financial situation. The impact would be less on the residential segment than commercial.
Ques 2 How do you see residential growth in coming quarters? When do you expect it to reach pre-COVID levels?
The figures from Q2 2021 throw some positive trends in the market, such as demand for larger homes. Fortunately, the real estate sector has also realized the configurations that it has to work on and accordingly, the developers have maintained the ratio. The ratio of the affordable segment in new launches was 56% in Q2 2021, which was higher since 2018. Also, the percentage of new launches in the premium segment reached 15%, which is close to the 18% share it had in 2018. The rationalization of launches in sync with the demand will work well and help the sector achieve decent sales numbers in the coming quarters. Sales will take some time to reach the pre-COVID levels, depending on the pandemic situation.
Ques 3 Has the commercial suddenly picked up pace in the post-pandemic scenario? Which sub-segment in commercials is being preferred by the investors?
Some new segments have entered the commercial segment, such as pre-rented units that assure the investors of assured income. There is no sudden increase in demand, but a certain momentum is being witnessed that might lead to sunny days ahead for the commercial segment. People who are considering real estate as an investment strategy choose the commercial segment as it offers attractive rent and appreciation returns.
Ques 4 What changes have you witnessed in the Gurugram market in the last one year?
The demand for properties in the peripheral regions has increased dramatically, including Golf Course Road and Dwarka Expressway. Not only the affordable segment buyer, but the buyers of other segments are also looking for properties in these areas. However, the movement cannot be attributed to the COVID, as the work on improving the areas has been taking place for over a decade. As infrastructural development is taking place, buyers realise the reality behind the promise of a better lifestyle here. Connectivity is the primary concern of the buyers, and with multiple roads and expressways coming around these areas, the acceptance has increased.
Ques 5 You have plans to expand your business to Delhi? What made you choose the region? Isn’t there stagnation in Delhi real estate market?
In the second quarter, we would be expanding our footprint to Delhi with a dedicated office. We see huge scope in Delhi’s real estate market, especially after the announcement of the land pooling policy. We are expecting a gross sale of Rs 30-50 crore starting from the third quarter from Delhi. There is no stagnation in the market, as there are areas in Delhi untouched earlier, but now the real estate development is taking place. The market in Delhi is completely different from neighbouring areas, as a large number of big-ticket deals makes it a lucrative option for a real estate consultancy.