For nearly 5 decades, Puranik Builders have been one of the pioneers in developing innovative real estate in Thane with a reputation of timely delivery and quality homes. From value homes to luxury apartments, Puranik builders have developed over 4.5 million sq.ft. Till date and has over 15 million sq.ft. under various stages of development in the residential space.
Team NewsBarons spoke with Shailesh Puranik, Managing Director of Puranik Builders (P) Ltd. on industry impact due to policy changes, cluster development, affordable housing and Thane as a real estate destination.
NB: The RE sector saw a slew of policy changes (RERA, GST) that has impacted sales. What do you think will be the long term impact of these policy changes?
Shailesh: GST and RERA will definitely have a positive impact on the real estate industry, specifically on affordable housing. The real estate sector, which till now was dis-organised, will be regulated with the Real Estate Regulation and Development Act 2016 (RERA) and GST. The buyer will be more protected and greater transparency in the sector will be visible post RERA, which puts accountability on the developers in terms of financial disclosure, timely development of projects and maintaining good corporate governance practices. Home buyers confidence is now set to increase on the back of these sentiment-building measures of the government. Together with RERA, GST will go a long way in ensuring transparency in the realty sector and growing buyer confidence.
NB: What will be the impact of cluster development on Thane RE?
Shailesh: Recently, Chief Minister Devendra Fadnavis approved for the Cluster Development Policy for Thane, which will ensure redevelopment of dilapidated buildings in the Thane Municipal region. The policy will be beneficial not only to those living in dilapidated structures but also to slum dwellers and residents of illegal buildings. Cluster redevelopment will enhance overall development of the Thane region. The increased FSI will benefit the stalled redevelopment of areas like Shivai Nagar, Lokmanya Nagar, Wagale, Kopri, Uthalsar, Rabodi, Kalwa and Kharegaon. The planning of clusters will involve providing facilities like open space, road, ventilation, parking, solid waste management and sewage treatment for every cluster. This announcement on cluster development is a step towards facilitating mass housing for the middle and low-income population at affordable pricing.
NB: You are a pioneer in creating affordable housing projects in Thane. Have you witnessed a growing demand in this segment in the last one year?
Shailesh: In the last decade, Thane and its surrounding belt have undergone significant development, providing all sorts of facilities and amenities to home buyers. The city’s best social infrastructure is available at a lower cost in Thane and its vicinity. The social infrastructure along with connectivity has boosted the population in the area. Thane, a mid-market segment, is very popular amongst the salaried professionals. Here, most of the residential projects are funded by banks, because of which, the effect of demonetization has been very nominal. We have witnessed overall development in commercial as well residential space in last few years. Especially even post demonetization the walk in decreased for only few days’ and post that the market is doing great in Thane in terms of sales and enquires.
NB: What is your outlook for the Thane RE growth?
Shailesh: Thane is set to be next residential hub for Mumbai home buyers. Thane realtors are coming out with several attractive and innovative projects at much cheaper rates. As a residential area, Thane is increasingly becoming an aspirational option for new home buyers given its good overall social infrastructure and reasonable property prices. The decrease in interest rate for homes loans has also benefited the sales of properties in Thane. The metro line running from Wadala-Ghatkopar-Thane-Kasarvadavali, which is likely to be operational by 2021-2022, is one of the biggest advantages for the area. ‘Location’, ‘Price’ and ‘Future Growth’ are the basic fundamentals when it comes to real estate investment – Thane area scores high on each, and is thus more desirable compared to other areas.
NB: Is there a possibility of price correction in residential space post GST?
Shailesh: Home prices are expected to pick up as the overall economy improves after demonetization. Also, with Real Estate Regulation Act (RERA), GST and other regulatory changes coming into effect, there is bound to be better transparency and credibility in the sector. At the current real estate prices, it is very difficult to cut down the costs. There is no chance of price negotiations in new projects without developers incurring losses. From a consumer perspective, this is a good time to purchase property.