Residential demand is expected to pick up towards the end of 2017...

Residential demand is expected to pick up towards the end of 2017 : Parth Mehta

73

 

Paradigm group is a syndicate spearheaded with credible experience of delivering cutting edge real-estate to the city of Mumbai with the use of global contemporary techniques, which are the keys to quality as well as timely delivery of their product. The group’s focus areas are western suburbs of Mumbai including Santacruz(W) ,Khar(W) , Borivali etc. The group is an eclectic mix of diversified yet aligned individuals focused to create marvels, which are based on utilitarian concepts.

Replying to Yash Ved of NewsBarons, Parth Mehta, Managing Director – Paradigm Realty says “. We are coming with almost 2mn sqft of development across Chembur, Goregaon and Malad locations. Residential demand is expected to pick up only towards the end of 2017 – but the recovery will be sustainable and based on much sounder market fundamentals than transient sentiment. In future, our major for us will be on affordable housing.”

NB: What is your take on the real estate industry?

Parth: Currently, the residential property market is mainly by end-users – speculative investors are making a beeline out of real estate as an investment category. Residential demand is expected to pick up only towards the end of 2017 – but the recovery will be sustainable and based on much sounder market fundamentals than transient sentiment.

Parth Mehta, Managing Director - Paradigm Realty
Parth Mehta, Managing Director – Paradigm Realty

NB: Brief us about your current and upcoming projects?

Parth: We plan to develop projects in areas which have better access to basic amenities. Affordability is one aspect which may attract people to buy houses, apart from that there is always an attraction to have a house in the area which has all the basic amenities at a very affordable price.

Over two years of brief period the company is currently developing 1.5 mlnssqft. In future, our major for us will be on affordable housing. We are coming with almost 2mn sqft of development across Chembur Goregaon and Malad locations. Tickets prices would be around 65 to 75 lacs for 1 bhk and 90 to 99 lacs for 2 bhk. The locations we have chosen as there is high absorption of the affordable housing in these areas. Also, nowadays affordable housing has been at an all-time high.

NB: What is your take on affordable housing?

Parth: Affordable Housing is definitely its commercially viable. The PMAY scheme initiated by the government is proving to be a boom for affordable housing segment. This move will benefit a lot of home buyers as they would be able to purchase flats at less cost, this would indirectly benefit Paradigm Realty as we would be constructing more projects in this segment.

NB:Do you expect more affordable homes will happen in the years to come?

Parth: There is a growth curve in the affordable housing schemes in 2017. There is a huge demand and increased supply of affordable housing. There is a pricing mismatch which is triggered by the gap between demand and unsold inventory. In India, there is always a high demand for affordable housing ranging from Rs.20 lakh to Rs.70 lakh, while many projects in Mumbai, are priced more than a crore.

Developers are now focusing on much needed affordable housing. In India where majority of population can’t afford homes,various initiatives of government like PMAY along with benefits of tax exemption will allow developers to developer such project at the same time earn healthy margins. We feel that there would be short term decrease of focus on luxury housing.

Though there are some segments which have come up after a heavy investment from the developer. The pricing of this segment cannot come down due to location and other luxury feature. These segments which are almost like affordable segment may offer a ready to move in arrangement too.

NB: What is the impact have you seen on account of RERA and GST?

Parth: The introduction of RERA has brought in a lot of transparency and accountability in the industry whereby attracting a lot of investments from foreign and domestic players. The new wave of RERA and GST will lead to a platform comprising of genuine, credible and ethical players. Their sole objective will be to fulfil their commitments as a developer.

Aggressive marketing on ongoing projects, necessary approvals before selling off the property and financial closures are some of the quests by the stalwarts to accomplish the task of timely completion and hassle-free delivery to the homebuyers.

NBWhat is your view on Real Estate Prices?

Parth: Currently the real estate prices are on a lower side as compared to what the market was few years back.The Mumbai residential market started 2017 on a promising note. Market activity is likely to remain slow but the second half of the year could be more active, as the gap between buyers’ and sellers’ expectations narrows again on account of realistic pricing.