Sales in this festive season is going to be better than last one: Mahagun MD Amit Jain
Real estate sector is going through a transitional phase in the country, especially in view of the corona pandemic and how the real estate companies are reaching oiut ot the customers. In such transitional times, RealtynInfra.com spoke to Amit Jain, MD, Mahagun Group about various factors including the upcoming festive season. Here are the excerpts of the interview:
Q) What are the expectations from the festive season this year? Will it at par with last year?
We are expecting more sales during this festival season as compared to last year. We managed to achieve good sales during the lockdown time and utilized various tools of communication to reach out to the public. The hard work done during the tough times is paying off well now, and this festival season will be better than previous years.
Q) What are the expectations from 2021?
Pandemic has been a blessing in disguise for the real estate sector as people have realized the importance of real estate assets. The sales have started picking up pace, and by the end of the year, it will likely be at par with last years. The speed is not going to slow down soon, and in 2021 we will witness more number of launches that will be according to the new norms being in vogue now. The demand is going to remain high for villas, penthouses, commercial spaces, and all residential segments.
Q) When can we see consolidation in the Indian real estate industry in major way and how bad/how good will it be?
It will be a good step for the health of the real estate sector. Many stuck projects are bringing a bad name to the sector as a whole, and if consolidation happens then only financially strong companies will remain in business. The sector needs to deliver projects on time continuously for a longer time to ensure that the optimism in the sector remains intact.
Q) What are the changes required from the governments’ side (regulations) that will remove bottlenecks and give further boost to the sector?
India is going through one of the biggest economic crises because of the global pandemic situation, and real estate is also facing the pinch like other sectors. A sector that contributes handsomely to the GDP needs handholding, and the developers are voicing their concerns in a bid to make the government pay heed to their demands.
One of the demands is of loan restructuring will help tackle the liquidity crunch that real estate has been struggling with for quite some time now. Developers are not getting fresh loans or even the top-ups, which are hurting the construction activities. Loan restructuring has been done for the MSMEs, and we are expecting that the Apex bank would consider it for real estate too. Liquidity is a big concern, and a halt in activities during the lockdown affected the cash flow. The government has to consider it to ensure the smooth functioning of infrastructural development.