The deadline for project registrations with Mahrashtra’s RERA is around the corner. With this there is a scrambling among the developers to not miss this deadline of 31st July 2017. So far, Maharashtra is ahead of other states for the implementation of RERA. All stake holders are waiting to see RERA implemented smoothly and bring in more transparency in the Real Estate industry. Team Estrade discussed RERA and other matters concerning the industry during a discussion with Parth Mehta, MD – Paradigm Realty. Following are the excerpts of this interaction.
About Paradigm Realty: The synthesis of group is to deliver comfort homes catering to practical needs of end-user including cross ventilation, minimal floor-space wastage yet superlative aesthetics, dedicated functional areas & tailored budgets. The group’s focus areas are western suburbs of Mumbai including Santacruz(W) ,Khar(W) , Borivali etc., and aims to create marvels, which are based on utilitarian concepts. The designs are beautiful interplay of curvilinear detailing & straight-line architecture. Paradigm Realty’s encompasses trust, transparency & honouring commitment as its ethos & pillar.
About Parth Mehta: Parth has diverse experience, starting from being an analyst at Citibank post his graduation in BMS from NM college to being as Business Development Manager at Wadhwa Group. He is an Alumnus of SPJAIN Centre of Management and holds an MBA degree in Finance.
Team Estrade: Tell us about Paradigm Realty? How you started and built this brand?
I have had an inherent passion to create practical and functional structures. I had an intent to make a difference by crafting marvels. This induced me to start a venture, PARADIGM REALTY. The company exudes commitment, integrity, business acumen and creativity. The purpose is to always create excellence in any project which Paradigm undertakes and ensure on time delivery to people who have invested their life time savings and dreams with us. Our intent to deliver has today taken Paradigm Realty’s team size from 3 to nearly 95 members, in a span of less than 2 years. It was the pure zeal and enthusiasm to create affordable luxury homes in Mumbai Suburbs and bring a sense of satisfaction of delivering ergonomically efficient structures, with best in-class aesthetics and practical structures.
Team Estrade: Paradigm has pan-India presence? Kindly elaborate on your projects in other cities.
Currently we have projects spanning across Mumbai.
Team Estrade: What is the current situation in the Real Estate market? Both for the buyers and the developers.
Real estate had been witnessing a slowdown for the past three years, but the slowdown induced by the demonetisation move has given a jolt to the process. Demonetisation further hit the demand in the last quarter which is generally the booming period for real estate. The implementation of RERA and GST has added to the same.
“Indian real estate sector is now an attractive option for both Indian and international investors.”
Team Estrade: What are your views on the Real Estate Regulatory Act 2016? The act come into force from May 1, 2017. What in your view are the major implications for developers and buyers, both in positive and negative terms?
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.
Team Estrade: Is the eco system in India ripe to fund very large Real Estate and infrastructure projects? What we need to improve in the funding aspects to help build this industry at a fast pace?
Yes, the recent FDI policy and the relaxation of norms in Real Estate Investment Trusts (REITs) are also promising huge funding to build very large real estate and infrastructure projects. The Indian real estate sector is now an attractive option for both Indian and international investors.
Team Estrade: What do you feel is the future of Sustainable development, Hi-tech and Green Building projects?
As infrastructure and technology improves, it will integrate into building design. Consumer interest in sustainable living is also growing, making green buildings the next option to go for SMART cities to emerge in India, architects, technologists and contractors must come together. These intra-industry connections should be facilitated and encouraged by public sector initiatives, to allow for such initiatives to grow.
Team Estrade: Paradigm Realty has products in which all segments of the market? Which product segment is the highest revenue earner for your company?
Currently, we have 5 projects, out of which 4 are ongoing projects. All the projects fall under different categories, Ananda Residency in Borivali West is a budgeted luxury project, Ariana Residency and Casa Palazzo in Borivali east is an affordable luxury project, Nivan in Khar west is a luxury project at an affordable price, Vogue in Santacruz West falls under Ultra Luxury Segment.
The affordable luxury segment is the highest revenue earner as compared to other projects.
Team Estrade: Is affordable housing commercially viable? How Paradigm Realty plans to benefit from government’s flagship programs such as ‘Housing for All by 2022’ and ‘100 Smart Cities’?
Yes, 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.
“after a long wait, the government finally awarded infrastructure status”
Team Estrade: What are your expectations from the Government, both at the centre and at the state levels, for Real Estate and Infra?
Firstly, after a long wait, the government finally awarded infrastructure status to the long-neglected sector of affordable housing. The need of the hour is now in terms the availability of land that can be used to construct affordable homes.
Team Estrade: What is the biggest challenge faced currently by the Real Estate industry?
The biggest Challenge Faced by the Real Estate Industry in today’s time, to highlight a few would be the smooth implementation of RERA and funding issues faced by the developers.
Team Estrade: REIT and FDI, which one of the two will dominate the market for Real Estate and Infra projects over next 2 years? Bank funding for developers to fund projects is set to ease?
REIT is going to be dominant in the Real Estate Market over the next 2 years. In fact, now bank funding for developers is going to be little difficult after RERA and GST has come into picture.
Team Estrade: Is the Real Estate industry facing a shortage of skilled workforce? The industry doesn’t seem have made a concerted effort in this regard in comparison to other industries, such as wellness, manufacturing, IT, etc. Your comments?
Definitely, as compared to the other sectors, Real estate industry still faces a dearth of skilled workforce and is an unorganised sector but with time even this industry is moving towards corporatisation and many companies have now become very organised and corporatized.
“Boom in the residential real estate market is gaining momentum”
Team Estrade: With RERA in place in Maharashtra, what do you see the effect on Real Estate prices over the next one year?
With the RERA in picture, the real estate prices move upwards especially in the residential markets, While the new rules call for a much stricter compliance and transparency, which might increase the real estate prices upwards, especially for the new project launches.
Team Estrade: What type of projects are getting funding these days?
The boom in the residential real estate market is gaining momentum. As currently the main focus is on affordable housing which has just begun, and according to experts, will last for a few more quarters.
Team Estrade: According to you, what are going to be the trends that define the Real Estate of India and Maharashtra (especially MMRDA and Pune), over this one year?
The real estate sector is of utmost importance to Maharashtra’s economy. It is amongst one of the largest contributors to the state’s economy, employment opportunities and a major source of foreign investment. Also, the real estate sector is estimated that Maharashtra needs to develop about 1 crore housing unit’s basis by 2022 to achieve the vision of our Honourable Prime Minister Shri Narendra Modi. Both rural and urban regions of Maharashtra would require about 50 lakh houses each by 2022.
“Biggest Challenge is the smooth implementation of RERA” – Parth Mehta, MD – Paradigm Realty
