The Phoenix Mills Ltd. is poised to carve a niche in the booming Indian real estate sector, led by Managing Director, Atul Ruia and a dedicated team of professionals. The Phoenix Group is set to take on the challenge of redefining lifestyle in Indian cities. Be it mega retail malls, entertainment complexes, commercial space or hospitality units, the Group are determined to make its presence felt in India.
- How do you see the real estate market is poised in India Today?
The market is poised for a steady growth with great impetus to the real estate industry per section, such as opening up of REITs, Smart City idea, passage of the Real Estate Regulatory Act, coupled with positive developments on the macro-economic front.
- What’s your view on the Real Estate (Regulation and Development) Act?
The RERA Act affords a level playing field for all stake holders, especially the consumer who has been at a receiving end, all these years. At the same time unscrupulous operators may be edged out, should they fail to comply with the requirements of the Act.
- REIT and FDI, which one of the two, will dominate the market for Real Estate and Infra projects over next 2 years?
Definitely it is REIT which will dominate, as it is a high breed source of funds to cash strapped developer and at the same time ensures greater flexibility, accountability, liquidity and transparency for big and small investors.
- Which segment, Commercial property or infra, do you think will contribute maximum, in revenue terms, over the next 2 years?
Both are complementary to each other; however commercial may produce more direct revenues as against infrastructure which is more generic but with long term implications.
“Housing for All by 2022” is a definitely a flagship scheme which drives all other schemes
- Affordable housing is commercially viable?
It is commercially viable with effective value engineering and focus on functionality.
- There is so much stress on luxurious lifestyle in real estate marketing these days, is that the only way to move ahead?
There is a volumes segment which consists of affordable housing, the niche segment comprising of the luxury/lifestyle and the one in between. The three segments thrive together catering to their respective target groups.
- What is the key change you strongly feel that the Government must do in policy and permissions terms?
The single window clearance system should be enforced in letter and spirit resulting in reduction of timelines which in turn will have a positive impact on project costs. Currently the process of approvals/sanctions/permissions from the various statutory bodies is a tedious one which is responsible for delays and cost over runs, eventually the brunt of which is borne by the customer.
The concept of Smart Cities will redefine the way projects are planned, implemented and operated, newer locations coming under limelight.
- Is the industry facing shortage of skills? Which areas? How are the Real Estate players bridging this gap?
The real estate business is still in the process of evolving itself into an industry due to which it is yet to attract skilled manpower. All functional areas such as finance, architecture, projects, quality control, sales and customer care face a similar situation. Significant players in the industry are devising effective HR policies which help them attract quality manpower and also conduct training programs to upgrade skills of existing resources. Exposure to FDI and technical collaborations with foreign players is also aiding the industry in developing fresh skills.
- How do you think realty firms would benefit from government’s flagship schemes such as ‘Housing for All by 2022’ and ‘100 Smart Cities’? As Most residential developments continue to be in the premium and luxury categories. What happened to the concept of affordable housing?
“Housing for All by 2022” is a definitely a flagship scheme which drives all other schemes based on affordable housing format aimed at catering to the masses, hence the opportunities seem to be endless. Smart cities will greatly contribute to the efforts of de-urbanisation and ensure quality housing for the middle class.
- Do you see property prices coming down? If no, why not? If yes, how and when?
There will be no real time reduction in prices but there could be slight corrections in as much as prices may remain constant for relatively prolonged periods. A situation where prices can come down is where input costs are reduced or a drastic slump in demand and none of these are expected in the foreseeable future.
- What kind of projects are getting funding from investors these days?
Intensity and volumes of investment is determined more by locations rather than types of projects. However, projects which are integrated enclaves have been attracting significant investor attention.
- How is the outlook on Residential property in next 1 year?
The prevailing velocities may continue but at the same time the industry may witness significant restructuring, realignments and readjustments to adapt to a new environment which is likely to emerge with the implementation of the Act.
- In the next two years, what are the two trends that will define the future of the industry?
The next two years are likely to witness the concept of Smart Cities into reality which will redefine the way projects are planned, implemented and operated, newer locations coming under limelight. Secondly, compliance with the stipulations as laid down in the Real Estate Regulatory Authority Act by all parties on whom duties or responsibilities are cast by the Act. At the same time the rigor with which the concerned Regulatory Authority enforces the Act and treats noncompliance will have bearing on how real estate industry evolves in the future.
“REIT will dominate, as it is a high breed source of funds”: The Phoenix Mills Ltd.
