Sophistication has come about in approach of home buyers: Akash-Elante Grp
A kind of sophistication has come about in the approach of home-buyers, who want to get a lifestyle that can seamlessly encompass the work-from-home concept, while not giving up on the opulence and comforts of luxury living, says Akash Kohli, Founder & CEO, Elante Group, in an exclusive interview with RealtynInfra.com. Here are the excerpts:
Ques: How do you see the upcoming festive season for the real estate industry in general?
The festive season has historically been the highest point on the sales chart of the real estate industry with Navratri and Diwali are real soon in the next quarter, considered auspicious for home buying. Potential homebuyers associate the festive season with security and prosperity making them sanguine about availing lucrative offers available in the real estate market through this period.
Current trends suggest that there will be at least 30-40% growth in both new launches and sales in the ongoing quarter (July-September) as against the preceding one. So, I foresee a promising festive season, especially for the luxury segment. This is backed by various facts including the evolution of real estate as the preferred investment class, and the need for a bigger and better space given the massive change in work dynamics.
Ques: How do you see any change in the perception/requirement of the home buyers in recent times? If yes, what?
Latest trends in customer preferences when it comes to premium real estate point to a sophisticated approach by home buyers, who want to get a lifestyle that can seamlessly encompass the work-from-home concept, while not giving up on the opulence and comforts of luxury living. The checklist of features, facilities and amenities that home buyers are looking for in the project reveal the importance they place on community, neighbourhood and hospitality services. Work-from-home culture has changed the paradigm for most home buyers.
Owning a home is no more a matter of investment preference, but a necessity, given the elevation that a luxury residence has come to occupy in the broader sense of work-life choices.Residents are far evolved, sharp and are looking for that home by a reputed developer who can cater to their wide range of specific demands, and is open to providing custom-made solutions to maintain their everyday work-life balance. This is a significant change from how luxury home buyers used to value and estimate properties in their shortlist of preferred projects.
Ques: Has RERA served its purpose? What changes can be brought about in RERA?
The impact of RERA has been different across States depending on the implementation status and the response of stakeholders towards increased compliance.
The implementation of RERA has been a boon for the state’s real estate landscape. The Act has projected the sector on a growth trajectory in terms of buyer sentiment, new launches, quality construction, transparent dealings and price appreciation. The long-envisioned impact of a transparent and credible business environment has started appearing in realty market. With buyers regaining confidence in real estate investments, sales are expected to hit a peak in the coming years. Going forward, the market will only witness positive movement on the back of RERA.
Equity and liquidity continue to be the major challenges in the face of developers. While RERA has come far in both streamlining itself as well as regulating the real estate industry, there is still a lot to cover. For instance, it lacks pricing information of apartments on the escrow account. Moreover, keeping the builders compliant of the law, taking charge of stressed projects and meeting liquidity issues are also some of the challenges faced by the regulatory authority.
Further, the non-establishment of a single-window clearance mechanism under RERA, a much-awaited proposition, continues to impact project timelines due to elongated delays in granting approvals, defeating the very purpose of RERA.
Ques: What regulatory changes are required from the government to spur the real estate market in the country?
What the sector needs are measures that will bolster demand including :
Swamih Fund needs more capital allocation.
External commercial borrowings (ECBs) with necessary checks needs to be permitted.
Selective subvention schemes need to be allowed.
GST needs to be waived off temporarily.
Tax benefits for homebuyers need to be increased.
Holding period for REIT needs to be cut; policy benefits must be provided to emerging sectors.