Indian Real Estate
Young Indians are high earners, real estate demand will rise: Ketan Sengupta
IBNS Correspondent Nitin Waghela catches up with the CEO of Bengal Peerless Housing Development Company, Ketan Sengupta, to understand the present real estate market and how it evolved after the pandemic.
How upsetting or favourable were the real estate market conditions pre pandemic ?
Pre pandemic the market was sluggish which began with demonetization and the sudden implementation of 12 percent GST (Good and Services Tax) on under construction apartments. After which, the RERA got implemented and doubts lingered around certain clauses. These reasons lowered the buying sentiments among the general public.
Now that the market sentiment has changed, how long will that uptrend last ?
Certain favourable factors came into play, the most important being the real estate prices hitting rock bottom and the housing loan rates reaching their lowest level. People realised those facts which led to an upsurge in buying tendencies. Even with salary cuts, individuals with some money thought it essential to invest in a residential property.
I foresee the present uptrend to last for the next 3-4 years. Currently, the prices of properties are on the rise due to an increase in the cost of raw materials like steel, copper and cement.
What changes in requirements have you witnessed among the real estate buyers?
Post the high tides of the pandemic, there has been a change in residential buying mentality that includes the need for healthy living, in house office space and more greenery which has also aided in buoying the market.
Do you see small real estate players coming in for a limited time period and disrupting the market as a cyclic phenomenon?
Not really, because real estate is becoming more corporatised and organised as an industry. All those fly by night operators will cease to exist as there are already a lot of big names like Tata's and Godrej involved and now the Birla's have also entered the market.
The Real Estate Regulatory Authority (RERA) will also have a very important role to play. It won't be easy for someone to make a quick buck and exit. You have to register yourself with RERA, follow guidelines that protect the interest of the buyer, sign and register an agreement with the customer and sign clauses approved by appropriate authorities.
The ones with honest intentions are not afraid of such clauses and they are the ones who will last.
Chinese real estate major Evergrande couldn't survive the covid19 impact, do you foresee such instances in Kolkata?
In Kolkata, I don't see such instances happening as the market here is not heavily debt ridden, although there were a few developers who were cash crunched but things have improved. What occurred in China is an entirely different ball game.
It was recently reported by the New York Times that Goldman Sachs plans to invest 2-3 billion USD in India, how do you see that impacting the real estate game?
That is exactly the kind of positive signs we look for. India's younger generation are earning a lot, including new couples and what we foresee from that is an elevation in real estate demand. This is the right time to invest in Indian real estate, which Goldman Sachs has rightly realised.
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