In a special discussion with 9amstories.com, Niranjan Hiranandani, Founder and MD, Hiranandani Group & MD, Hiranandani Communities, expresses his opinions on current real estate scenario and on his new responsibility: President, NAREDCO (West)
Please let us know your perspective on Indian real estate market?
Real estate, as an industry, witnesses business cycles, and market indications are that it is poised to witness an upturn. The festive season which will start in a couple of months should define positive sentiment. This ‘positive trend’ began in 2015, and we have seen it grow through 2016 so far – and it should continue its growth through the rest of 2016.
To what would you attribute this ‘positive trend’?
A major role in the growth of positive sentiments in 2016 is the Real Estate Regulation Bill being passed by Parliament and becoming law; and as a result, I foresee increased credibility and positivity, going into the second half of 2016. These are among the reasons why we see this ‘positive trend’ in Indian real estate.
Which segment is driving this ‘positive trend’?
This is being driven by demand for commercial and office spaces, which started picking up in second half of 2015. This has continued its growth story through 2016. As Indian real estate trends show, growth in Commercial Real Estate has a cascading impact on residential realty; and we are witnessing this slow pick-up and increased off-take of residential real estate too.
Does it mean that there is a co-relation between commercial and residential?
I look at the positive aspect driven by commercial real estate and its growth – corporate entities are expanding and consolidating, and they are also relocating – for example, corporate entities across Mumbai and suburbs are picking up space for immediate use in locations like Thane as also booking space from a future perspective in locations like Panvel. This has resulted in enhanced off-take of commercial realty across 2015 and in 2016 till date. I believe that the momentum of commercial real estate demand will provide will also positively impact demand for residential real estate in the vicinity of these commercial properties.
You are the Founder and First President (West), NAREDCO – you were President of MCHI-CREDAI some years ago. Please explain what NAREDCO is?
The National Real Estate Development Council (NAREDCO) is a body representing stakeholders in Real Estate. It works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India. The Maharashtra chapter was set up last year; I am the Founder and First President, NAREDCO West.
Tell us something about the NAREDCO National Convention and when it is being held?
The National Real Estate Development Council (NAREDCO) 13th National Convention will be held in New Delhi on 19-20 August, 2016. “The Chief Guest of the Convention will be Mr Venkaiah Naidu, Hon’ble Minister of Urban Development, Housing and Poverty alleviation and Information Broadcasting, Government of India. This National Convention and Exhibition will provide a fillip to the real estate sector.
What does the NAREDCO National Convention seek to achieve?
The main objective of the Convention is to deliberate on the existing real estate scenario and prepare road map for various legislative, regulatory, administrative and financial reforms. The thrust of the Convention would be on promoting development of the real estate sector, apart from discussing various aspects associated with ‘Housing for All by 2022’, the initiative of Prime Minister Narendra Modi.
Why is Housing for All by 2022 important?
It is simple – consider the fact that the Government is targeting construction of 6 crore houses by 2022; 2 crore houses in urban areas and 4 crore houses in rural areas. The Convention, with a view to making ‘Affordable Housing’ a reality, as also building Smart Cities and rejuvenating urban infrastructure, will provide an opportunity to all stake holders to deliberate the challenges the sector faces, and evolve strategies to accelerate the pace of growth.
What do you expect from the Convention, and is it just about knowledge takeaways?
It’s a common platform where stakeholders will share problems and suggest solutions. Speakers at the Convention will include leaders from the Government, academia, real estate industry and financial institutions who have international exposure and experience. Along with the Convention, the ‘National Real Estate Scroll of Honor 2016’ will honor meritorious industry players and associates for their outstanding performance, contribution and innovation. With the aim of furthering the growth of the real estate sector, an exhibition to display new properties, technologies, products and materials for the benefit of the participants will also be organized at the same venue.
Real estate is poised to witness an upturn.