India Post News Service
NEW DELHI: Rajesh LifeSpaces celebrates its legacy and ability to create budget homes and future-ready apartments in Mumbai. Its legacy arises from decades of experience, crafted by timeless principles, driven by future, led by integrity, accentuated by the way it honors commitments and complemented by adherence to business ethics. It has crafted diverse affordable housing and luxury apartments over 8 million sq.ft with an additional 13.5 million sq.ft of ongoing and 16.2 million sq.ft of upcoming projects in the western and the central suburbs of Mumbai.
In an e-mailed interview, Mr. Pratik Patel, Director of Rajesh Lifespaces, comments on the impact of demonetization and other issues connected with real estate. The following are edited excerpts:
Impact on prices
Property prices are not likely to go down. The cost of raw materials will stay the same. However, the market might witness a rise in land prices. If the operating costs and capital expenditure increases overtime, we don’t see how the property prices will come down.
Demonetization has brought in happy times as is evident from the indicators in the Indian economy and the banking system. We are sure this momentum will drive growth into the sector. The government has already announced a few key policies for affordable housing. To add to this, the home loans have become cheaper.
Benefits for NRIs
Real Estate still remains the best instrument of investment in India. The benefits of investment like rental yield, appreciation of assets and usability make real estate a far more lucrative option than gold, stocks or currency. History tells us that the value of real estate seldom depreciates under normal circumstances.
The scope for NRIs to invest in commercial properties in India has increased tremendously. The demand of commercial spaces is growing at a healthy pace year on year. This gives a huge scope for NRIs to invest in commercial properties in India. The expected rental yield in this segment is increasing at a rate of 10 – 15 % per annum depending on the project and its location.
At present we have an offer, which lets you pay 5% as an initial down payment and the remaining amount at the time of fit-outs. This subvention offer is also open to NRIs.
Apart from the currency exchange rates, an NRI must consider a few factors while investing in real estate back home, such as:
- Location of the project
- Stage of construction & possession date
- Rental yield in the local micro market
- Reputation of the developer
- Finance options available
- Bank approvals for the project
The real estate products in India and abroad are different. The design of each project is created keeping in mind the local climate and culture. Hence, it is difficult to draw parallels between real estate in India and abroad in terms of quality.
As for the speculation about the bubble being burst, it is merely an urban legend. Even in the past, we have heard many ‘experts’ make such statements, only to be proven wrong.
Govt initiatives
A few government initiatives to boost FDI in real estate are:
- Quick implementation of the Real Estate Regulatory Bill (RERA) to enable the realty market to attract FDI
- More clarity over the entry and exit norms and processes to be followed by investors.
- Both Centre and States must work together to ensure removal of bottlenecks for faster implementation of reform measures and construction related approvals for foreign investments in real estate.
- The Indian government could also consider a reduced lock-in-period applicable for FDI investments from 3 years currently to 1-2 years to further enhance investor interests.
Current trends
Of late, we have observed mixed trends in the real estate market of Mumbai. There was a dip in demand due to demonetization, but we are noticing a gradual and steady ascent. There is a healthy increase in the number of conversations we are having with our prospects. The demand for 1-2 BHK homes is robust while commercial properties are also exhibiting a healthy demand.
USPs of Rajesh LifeSpaces projects
Raj Grandeur, Powai, has Lake View residences, looking out onto the Powai and Vihar lakes. Internally the homes are adorned with the best in class amenities such as Sundecks, Italian flooring and wooden flooring in the living rooms and bed rooms. Externally, there is an indoor cricket area, a squash and badminton court with a world class swimming pool and a mini ampi theatre, to name a few.
- Some of our other projects are :
- Raj Tattva, Thane –Prides in offering the largest living space in Thane with 3.92 acres of open space and 30,000 sqft of recreational space
- White City, Kandivali–1,2,3&4 BHK air-conditioned homes spread over 11.5 acres with an unbeatable view of the Sanjay Gandhi National Park
- Raj Infinia, Malad–Located near link road, this project connects you to business hubs, shopping malls, restaurants and sports club in a matter of minutes.
- Raj Altezza, Mulund–4-10 ft decks, accessibility to schools, highways, malls &restaurants within 100meters to a km. Serves 6 flats per floor with 4 elevators.
- Raj Torres, Thane –Conveniently located with schools, malls, business hubs, restaurants & hospitals within a 2km range; Spacious apartments with over 14,000 sqft area for functional amenities
- Raj Spectrum, SionBandra Link Road (SBLR) – 2BHK residences here provide easy access to important landmarks making it a central & convenient locale
Future of real estate
We hope the government of India continues its efforts to implement reforms, in the future as well. At present, there is a shortage of supply which is driving the prices upwards. The government and the real estate fraternity need to get together and deliver projects to lower this demand-supply gap. This will create a big opportunity for real estate brands which the industry is bound to make the most of.
