Our projects are designed in a way to improve living experience of the home buyer and create sustainable development. Manju Yagnik, Vice Chairperson, Nahar Group
India has an impending need for building infrastructure what are your views on this?
The government in its earlier budget announcement clearly outlined that Infrastructure development and Housing are two important sectors that are going to be the focal point in spearheading the growth of the economy and country. Both these sectors are interconnected as housing will develop only if infrastructure improves. This includes road, railways and airports that will help in giving a boost to residential and commercial housing markets.
Analysts have suggested that the price of the property vis-a-vis the purchasing power of an emerging India is one of the causes of the real estate slowdown; do you agree, what are your views?
The purchasing power of a home buyer has increased manifold. This has come about due to opening up of the Indian economy and therefore better job opportunities and a higher pay scale offered by employers. Land is a major component in the final cost of property to the home buyer. With each passing day the land price goes up due to accumulation of interest amount and appreciation. This cannot be controlled and therefore prices have gone beyond the reach of most home buyers. If government can offer land at subsidized rates to developers then projects can be developed with more control on prices and therefore will be within the reach of most home buyers.
Do you think the future of real estate lies in rentals or ownership will tend to be the predominant trend?
Indians generally believe in purchasing their home rather than living on rent like the trend in western countries. We prefer to own our home as we believe that a home as an asset will appreciate over the years and will form a legacy to hand over to the next generation. So, yes we believe that ownership will prevail over rental housing.
Thirty years back people dreamt of owning a house, now, consumerism has changed the attitude of the end consumer do you think this has affected the industry?
As mentioned earlier, the customer still will want to own his home rather than taking one on rental. The difference is a consumer today is more aware and globally travelled. They know of the international trends prevailing and demand the same here as per international standards. This demand has had a positive impact on the industry where the developers are now looking at the product / house which is globally acclaimed.
Many real estate groups have adopted the technique of offering their units on an invitation only basis, are you doing something along similar lines, do you think such marketing exercises are effective?
No, we do not follow such marketing exercise as we believe everyone should be given a chance to aspire for a better lifestyle. These gimmicks are used in very premium and high end projects where the developer believes in creating a halo around the project. This creates interest and buzz about the project among buyers and investors. In the short term yes, but not in the long term as sales are muted due to the sheer size of the project.
Do you think the state government should invest in real estate to ensure affordable homes are made available to the burgeoning working class in the cities and the suburbs?
We at the industry level have been saying that in order to achieve the government’s goal to house all Indians by 2022, we need to work together under the PPP model. The private developers can share their expertise in terms of building construction and the government can help by procuring land and express approvals for quicker delivery of affordable housing for the people. We believe this is the only way forward if we are to achieve our mission to create affordable housing for the working class.
What are the new generation technologies that Nahar Group has adopted in its projects?
Building construction technology has improved by leaps and bounds and is presently on par with global standards. At Nahar Group we work with globally acclaimed architects and designers and adopt innovative construction techniques like ‘slip form construction’ and ‘pre-fabrication construction’ which have been incorporated in our projects.
Incorporating innovative techniques have helped in improved construction standards giving consumers a superior finished product.Our projects are designed in a way to improve living experience of the home buyer and create sustainable development. Some of the materials used such as paints, marbles, sanitary fixtures etc. are all green building compliant.
When it comes to housing, developers believe purchasing land parcels from the city and an increase in volume is the way forward to reduce the cost per unit making it affordable, what is your feedback on the same?
We are fortunate to have such a huge land bank in the heart of Mumbai which we are developing i.e. our flagship project NaharAmrit Shakti. We are a Mumbai centric developer but have spread out to other cities as well. Our focus would continue to be Mumbai though we are expanding our wings to other cities like Chennai, Pune and plan projects in Bangalore too.
We are in the luxury housing space and therefore cater to that segment of home buyers, where cost is not the main criteria but other aspects are taken into account such as social infrastructure, connectivity, ambience of the project like green cover, open spaces etc which the prospective buyer looks to before investing in our project.
What are the green solutions Nahar Group has put to use in its projects?
Nahar’sAmrit Shakti is our flagship project and we have laid a lot of emphasis to work in accordance with nature in this project. We have roped in international talents to assist us in offering a green lifestyle to our customers and residents. We firmly believe in giving our customers eco-friendly projects that have ample green cover that soothes the senses of our customers especially after a hard day’s work.
In addition to the already existing multiple high rise where over 4000 families dwell, two magnificent towers with spacious 3 BHK apartments, springing from the lush greenery is ready to be addedto the magnanimity of Nahar’sAmrit Shakti in Chandivali. Replete with world class modern features like premium flooring, international style modular kitchen and designer bathrooms, you can enjoy the privileges of luxury living here. Come home to a verdant landscape sprawling up to over 5 lakh sqft with one of Asia’s largest Podium Garden, a rejuvenating Tulip Garden, Azure Water Bodies, fascinating Sculpture Garden and an engaging Kids’ Play Area.
How has the introduction of RERA (Real Estate Regulation Bill) helped the real estate industry and the consumers?
The passing of the Real Estate Regulatory bill has given a fillip to the industry increasing the confidence level of home buyers and industry alike. This bill will improve transparency levels and attract more investments into the sector. The interests of both the buyers and developers have been taken into account and we can look forward to more credibility for the sector.
Given the high cost of land in a city like Mumbai and high rental costs, this bill will ensure projects adhere to project timelines and possession is given to home buyers on time. This will help home buyers who can now optimally plan their finances accordingly and are not left without a roof over their heads in case of delays. However developers are apprehensive that the registration of under-construction projects could lead to delays. They’re also concerned that setting aside 70% of the funds collected from customers will lead to strain on the liquidity position.
The state regulator will help streamline processes and working of the industry. More transparency will help in attracting foreign investments into the sector. Banks and Financial institutions will also not hesitate to lend money as funding of projects is a major issue faced by most developers today.
In a way, it gives an opportunity for developers who have a good brand record to develop properties for their target segment of home buyers. In a nutshell, the passing of this bill has created a positive environment and we can only look forward to a healthier realty sector ahead.
We hope the government takes heed to our demand to confer industry status on the housing sector, though it being the second largest employment generator and contributor to GDP after agriculture in the country.
What kind of opportunity exists for a group like yours in the Smart City initiative which has been actively promoted up by the GOI?
We believe that the concept is good and it has the potential to drastically improve the image of our country. Smart cities are absolutely green field, technologically advanced and energy efficient. It will attract huge foreign investments into our country and potential to generate huge job opportunities for the people of India. Smart cities will provide a healthier environment, better connectivity and an enhanced lifestyle for the people of the country. This will also reduce density of population in urban areas. There is a growing trend of new age living being technology enabled and driven. Our lifestyle and everyday living totally depends upon technology in every sphere of our lives and this is in line with way smart cities are being developed.
