The year 2018 may see a trend of developers majorly catering to all levels of housing segment as prices are expected to stabilize. This year will raise the expectations of both developers and buyers as there will be more clarity on policies and prices. With the likely introduction of Real Estate Investment Trust (REITs) sometime next year, combined with RERA and GST having already introduced, the sector will surely be the safest heaven for investors at large.
Shree Krishna Group has successfully delivered over 200 commercial and residential properties amounting to 4 million sq. ft. in the last 5 decades. The principal philosophy is to give affordable luxury homes at economical rates with zero compromise on quality and timely delivery along with maximized value for money.
Replying to Yash Ved of Newsbarons, Sundeep Jagasia, Managing Director, Shree Krishna Group informed “The affordable housing segment is now growing at a very rapid pace of 30 percent annually and is likely to be a $100 billion per annum market in the next five years.”
NB: What is your outlook for 2018?
Sundeep: The government with the introduction of Real Estate Regulation & Development Act (RERA), Goods & Services Taxes (GST) along with demonetization ensured that Indian real estate finally moved from a speculative market to end-user market making the sector more investor-friendly to attract the real buyers. The government steps ensured that all fence sitters finally took a call to enter the market and on the other hand also attracted newer investors and buyers into the market.
These reforms by the government brought in complete transparency which saw the confidence in the sector that was missing for decades now. The year 2017 will be regarded as the inflection point that signaled a transformation in this sector, ensuring exponential growth of the sector in the coming years. Such positive steps by the government will surely contribute to the overall optimism and add to the cheer in 2018.
NB: What outlook do you see for affordable luxury homes?
Sundeep: With the implementation of Goods and Services Tax (GST) and the Real Estate (Regulation and Development) Act, 2016 (RERA), demand in the residential markets across cities remains subdued, but the affordable segment is seen as a bright spot driving growth in the coming months.
As per estimates, India will need more than 18 million affordable housing in urban areas by 2022. The affordable housing segment is now growing at a very rapid pace of 30 percent annually and is likely to be a $100 billion per annum market in the next five years.
We look forward to bridging the demand and supply gap and are focused on developing quality affordable luxury homes under sub 1 crore categories.
NB: What is your mix in terms of residential and commercial space?
Sundeep: We concentrate mainly on a residential sector and hence 95% of our projects under construction are of both budget and luxurious residential homes. The total area including low budget and luxurious apartments are around 2 lac sq. ft.
NB: Your fund raising plans? Any IPO plans?
Sundeep: We raise funds mainly through debt and internal accruals. As for IPO plans, it is definitely there as a future plan.
NB: Your vision for 2020?
Sundeep: Our vision for 2020 is to concentrate on developing affordable homes.