Estrade Media Pte. Singapore, recently hosted the 3rd Estrade Real Estate Conclave & Awards 2017 – Singapore, which was scheduled on 6th October 2017 at the Grand Copthorne – Waterfront. The Estrade Real Estate Conclave and Awards is the only India focused, business to business connect engagement for the Real Estate industry organized in South East Asia. The awards night brings together more than 100 business leaders comprising of Real Estate developers, Interior Designers and Architects. Unlike other industry engagements organized in India, where the connect is more local, Estrade Real Estate Conclave provides a global connect at an international platform. Creations won the Best Business Practices of the Year Award. Team Estrade had the opportunity to speak to Ram Kumar – Founder & MD, Creations at the 3rd Estrade Conclave and Awards 2017 in Singapore. Following are the excerpts of this interview.
About Creations
The company was established by Ram Kumar in 1989 with support from S. Asha Marina, M.S., in Computers. The company has successfully completed over 36 projects with consistency in Quality, Innovative Ideas, Creative designs. This was achieved by adopting latest in technology along with implementation of time management from timely delivery of the projects. Construction and development has been an element of the company’s culture. Every buyer wants their house to be a home and Creations as a real estate Developer company has helps its customers realize the magnitude of it.
About Ram Kumar
Ram Kumar is a Civil Engineer by profession with more than 27 years of experience in the fields of building construction, interiors and mining. He started with the setting up of Concrete PreFab Products such as concrete hollow blocks. With a strong base in taking up engineering projects, he went on to diversify his company into building residential projects. After a successful and diverse experience in India, Ram Kumar has set up a joint venture company in Malaysia, under the name and brand of JN ABC, Malaysia.
“RERA is a welcome move and highly
appreciated by the organised players”
How do you feel on receiving the award?
Great feeling to receive this award. I thank Estrade, their readers, Creations team and our numerous clients.
How do you see the real estate market poised in India this year?
As of now it is very dull but must pick up by early 2018… the industry is definitely walking towards progress
What are your thoughts in RERA and GST?
Both GST and RERA are a welcome move. They should, however, allow more time to notice results
How do you see the future of real estate market in India?
Difficult to answer keeping in mind the recent policy changes, only time will tell, however, steady growth will be there and we have positive sentiments for the future.
“INFRA is expected to contribute
the maximum to the industry.”
What’s your view on the RERA?
It is a welcome move and highly appreciated by the organised players, as it helps to retain their brand in the market, with encouragement and great foresight from policy makers in the government.
How introduction of RERA is set to change the future of Real Estate market in India?
Unorganised players would have to either correct themselves or be wiped out in this churning in the market. Buyers will get more confidence – investors will have confidence to invest. Therefore, the future looks very positive.
REIT and FDI, which will dominate the market for Real Estate and Infra projects over next 2 years?
FDI will have more takers because they have access through so many channels. At the same time, REIT method of financing is yet to be fully understood in India.
Which segment, Real Estate, commercial or infra, do you think will contribute maximum, in revenue terms, over the next 2 years?
INFRA is expected to contribute the maximum to the industry. Now since affordable housing would get infra status it should be infrastructure sector.
“Skills are a must for execution
of projects in a timely manner.”
Affordable housing is commercially viable? This is product going to dominate the market nationally?
True, but the government should bring in more transparency for the reputed players to participate more in this process. Land should be made available at an affordable cost for sustainability on affordable housing – same Infra projects.
There has been way too much stress on luxurious lifestyle in real estate marketing, is this set to change?
It is one part of market where residents prefer a particular product and some Real Estate developers cater to this luxury product as a part of their entire portfolio of products basket. With the promise of affordable housing, this trend is already changing, albeit slowly.
What are the key changes that the Government must do in policy and permissions terms?
With regards to RERA, the registration for affordable housing to be made simple and easy, so as to enable a good level of participation from large number of players in the market. With reference to lands guideline, the cost to be reviewed by the government for affordable housing projects.
Is the industry facing shortage of skills? Which areas? How are the Real Estate players bridging this gap?
Skills are a must for execution of projects in a timely manner. Real estate players set up programs to help their work force update skills on a regular basis. Many players have their engineers attend seminars and learn new skills; these are also directed at promoting automation in project work.
How do you think realty firms would benefit from government’s flagship schemes such as ‘Housing for All by 2022’ and ‘100 Smart Cities’?
These are great projects – Real Estate industry would definitely benefit. Time is the main criteria here. If properly promoted by the government and encouraged, then many real estate developers will participate in large numbers.
Do you see correction in property prices?
The current market sentiment is not focused on the high prices for property, but only on lack of client confidence in current conditions, now as the new policies have come into force making a positive impact, this is bound to change. At the same time, steps should be taken to reduce cost of raw materials for the developers, for this, the government should make available steel, sand and cement at a regulated price. Power supply should also be made available in plenty.
“Undoubtedly the Govt making things clear on the loan
interest rate, Income tax rebates for affordable housing…”
What kind of projects are getting funding from investors these days?
Project which are viable commercially are finding good investors for residential property in the mid sector.
How is the outlook on Residential property over the next 1 year?
Improvements will be there since the buyers will make their plans after a definite understanding of the government plans and policies. For developers that trend should save cost of financing.
In the next two years, what are the two trends that will define the future of the industry?
Undoubtedly the Govt making things clear on the loan interest rate, Income tax rebates for affordable housing, streamlining GST, rewarding the good law abiding real estate developers, exempt major items for affordable housing from GST,.etc.,
Future of this industry depends on
1) How effectively RERA is implemented and functioning. This will give confidence to both buyers and investors
2) Government must make initiatives to bring down raw materials cost price
3) Legalities on land – to be streamlined and E-land banking should be made available whereby land under E-land lending to be supported by the government.
“FDI will have more takers” – Ram Kumar, Creations
“FDI will have more takers in Real Estate industry” – Ram Kumar, Creations
