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NVT Group offers professionalism & quality

March 23
12:28 2017

Mr. Vivek , Director - NVT Quality LifestyleIndia Post News Service

NEW DELHI: NVT Group offers services in quality certifications, consulting, training and infrastructure development. The Group is spearheaded by alumni from IIT, Carnegie Mellon University, Purdue University and Wharton Business School. NVT Quality Certification with business partnerships in the Netherlands and USA, offers services across India, South East Asia and Middle East. NVT Quality Certification has certified more than 500 companies for ISO 9000, ISO 14001, ISO/TS 16949, AS 9100, TL 9000, ISO 20000, ISO 27001 and Third Party Inspection Services.

In an e-mailed interview, Mr. Vivek, Director – NVT Quality Lifestyle , discusses the impact of demonetization and other issues connected with real estate. The following are edited excerpts:

Demonetization

 

With Demonetization, primary markets will benefit from lowering of interest rates. Secondary market impact will be limited as supply side will witness reduced inventory. Agriculture land costs will remain stable due to reduced availability of land. Reduction in costs of project financing will increase holding capacity of builders. Bangalore will not be impacted as it is already a predominant end-user market with low dependency on cash. It will witness significant PE and FDI flow which would help maintain the prices/ increase prices in the future

 

The introduction of the GST and with a stronger monitoring and restriction of cash transaction will bring more and more of the informal economy to the formal. The effects of this would only be felt in the medium term.

One of the suggestions is to reduce the registration and stamp duty significantly.

 

These are certainly happy times for homebuyers not because prices of homes would reduce but because of reduction in the interest rates. This would bring the cost down towards acquisition by 5-10%.

 

We frequently engage architects from abroad to ensure that the international trends and best practices are part of our projects too.

 

As for safety, an intelligently taken investment decision with mandated precautions normally has a very high probability of safety, security and returns.

 

Commercial Property is not a segment that we at NVT have explored seriously so far in India.

The banks have supported us with dedicated resources under single windows for NRIs enabling complete assistance, quicker response times and ease of documentation that can be perfectly managed without the need for undertaking any special travel to India for this purpose

Foreign investment  

 

The biggest deterrent for any foreign company to invest in India is lack of transparency, uncompetitive tax regimes, and insensitive political will to support businesses, a bad infrastructure and unfavorable or obsolete labor laws. With bold steps being taken towards addressing each of these concerns by the present government, foreign Investments are expected to rise significantly in future. Also relaxations in FDI norms, plans to build 100 smart cities, ease in housing finances, establishment of REIT and land acquisition bills have been a positive step to attract foreign investors . We have some of the leading banks as our partners in our project offering some of the best interest rates available in the home loans market for NRIs.

 

USPs of NVT Group projects

What truly sets us apart is that NVT is a company of professionals by professionals. The management team with professionals from IIT, Purdue & Wharton having sensibilities of professional lifestyle. When we moved to India and started the operations, we felt the professionalism and quality as some of the pain points of this industry. That was the time we decided to have our offerings reflecting our sensibilities and hence, we do not build villas that we ourselves are not comfortable in staying. Also our deep passion and engagement helps us to deliver results that somewhere meet ours and the client expectations.

 

We take Quality very seriously and this is an extension of ours as we have been into Quality Certifications for the past three decades, which reflects in every aspect of our business. Most of the specifications including flooring, fittings etc are from companies having global presence. The material and the processes involved in the construction are at extremely high quality and from some of the leaders in the category.

 

We also take pride in offering master plans and floor plans that are created for the professionals. All our villas come with 2 car parks and large living and family spaces. 65-70% spaces in our gated villa townships are open spaces.

 

The affordability of homes remains a challenge for most of the Indian households and I think there has been a tremendous push by our government to minimize this gap to create affordable housing for all. Demand for residential properties has surged due to increased urbanization and rising household incomes.

 

 

 

Following are some Questions from Realty Supplement:

  1. What are the Major impacts of demonetization on Real estate?

In an article that I had written just after the announcement of Demonetization (attached), I had argued that the demonetization would not result in any drop in the prices. However, with the additional incentives and the better rate of financing, the cost of ownership of the property will reduce.

We have witnessed that the one the fence buyers have become active and are looking at closing the purchase soon. Although the decision making cycle has increased, due to the negative sentiments and also the general impression (which is completely wrong) being spread in the market, we find that the serious buyers have now started to take the buying decision.

 

The following are the major impact:

  • Primary markets to benefit from lowering of interest rates for the borrowers
  • Secondary market impact to be limited as supply side to witness reduced inventory
  • Agriculture land costs to remain stable due to reduced availability of land
  • Reduction in costs of project financing to increase holding capacity of builders
  • Bangalore shall not be impacted as it already is a predominant end-user market with low dependency on cash
  • Bangalore to witness significant PE and FDI flow which would help maintain the prices/ increase prices in the future

 

  1. What kind of process filtration you expect due to demonetization in the current scenario?

The process filtration is expected to be as result of digitalization more than demonetization itself with every stakeholder in the eco- system trying to maximize his share of the pie. The processes shall not become effective because of demonetization. The introduction of the GST and with a stronger monitoring and restriction of cash transaction shall bring more and more of the informal economy to the formal. The effects of this would only be felt in the medium term.

In case of real estate, there is a greater need to look at the process and tighten the places where the cash is getting generated. One of the suggestions is to reduce the registration and stamp duty significantly.

 

  1. Will property prices go down after demonetization in India? If yes, how?

No, in fact these are likely to rise over the long term.Seeing demonetization through the glass of digitalization, the prices across the service sectors is bound to rise alongwith a proportionate increase in the levied duties and taxes by the State/Central governments. As the final prices from the affordability standpoint continue to be in a negative trend, the heat may turn on to the land acquisition pricing and the developers. Distress sales/business mergers and acquisitions  (by even foreign investors )from both these stakeholders cannot be ruled out, which in turn will lead to less launches/shortage of inventory and pushing up the pricing further high.

You can refer to the article: The Right time to buy a property is now.

 

  1. Demonetization Brings Happy Days for Residential Property Buyers?

These are certainly happy times for the homebuyers. The happy times is not because the prices of the homes would reduce but because of the reduction in the interest rates. This would bring the cost down towards acquisition by5-10% as the case may be.

 

  1. What should any NRI keep into consideration while Investing Back Home?

The lifestyle in Western countries is quite different than that in India.It is important to be mindful of the investments that should satisfy theparameters of a quality living even if they come with some premiums.This should also include the distance & average commute times from the workplaces/schools,marketplaces connectivitywith Main Roads, infrastructure development around etc;,, delivery timelines,a sense of community that are expected to be in the neighbourhood,cost components including price, stamp duty, registration charges, transfer fees, monthly outgoings and society charges, costs of utilities,quality of construction, quoted build up areas, potential of sale or renting out.Also it is important for all legal titles to be clear and authenticated before entering into any agreements to prevent long-term complications.

 

Above all, I feel that the reputation & background of the developers is very important. A buyer must be comfortable with the profile of the promoters.

 

 

  1. Do Indian Developers delivering Realty at par with the quality available oversees?

Yes, in fact many of the developers in India today are using  design architects and specifications of  international  repute and standards. The entire management team at NVT Quality Lifestyle have graduated from some of the best universities in US that include Carnegie Mellon, Purdue and Wharton, and having lived in US for a good while and having been associated closely with the professional communities of the world gives us a sense on the expectations of community abroad.  We frequently engage architects from abroad to ensure that the international trends and best practices are part of our projects too.

 

  1. How Safe is Real Estate Investment in India Today after such a big jolt to the Industry?

An intelligently taken investment decision with mandated precautions normally have a very high probability of safety,security and returns.Real EstateInvestment in India is no different even today.

 

  1. India’s Real Estate Market: Time for the bubble to burst! What are your views on this statement?

There is no denying in the fact that there would be market corrections.Market corrections doesn`t necessarily mean price corrections for the end buyers who continues to remain the king,butwhat it implies is the corrections within the current eco systems.The turbulence may be felt by  some stakeholders till they embrace this welcome change. In fact, the rapid urbanization, growth in population,rise in the number of nuclear families, easy availability of finance, repatriation of NRIs and HNIs,rise in disposable income are all key drivers in this exciting market space.

 

  1. Scope for NRIs to Invest in Commercial Properties in India, what kind of Returns they may expect after Market Corrections?

Commercial Property is not a segment that we at NVT have explored seriously so far in India.

 

  1. What are the Initiatives Government is taking to boost Foreign Investment in Indian Realty Market? What are your suggestion?

The biggest deterrent for any foreign company to invest in India is lack of transparency,uncompetitive tax regimes,insensitivepolitical will to support businesses,a bad infrastructure and unfavorable or obsolete labor laws. With bold steps being taken towards addressing each of these concerns by the present government, the foreign Investments are expected to rise significantly in the coming times. Also relaxations in FDI norms,plans to build 100 smart cities, ease in housing finances,establishment of REIT and land acquisition bills have been a positive step to attract the Foreign Investors .

 

  1. What is the current trend in Real estate in your region?

Bangalore has been typically the market of IT Professional communities and being the Silicon valley of India has lot of technical attribute amongst its crowd. The local factors (such as job opportunities, roads & new infrastructure, schools) have the biggest impact on a particular location’s price. The primary markets had been quite transparent and digital even before demonetization,however this has just accelerated the deployments.There had been a period of sluggishness in the sector just immediately after demonetization basically because people wanted the clouds to clear before they take any important financial decisions.Bengaluru outperformed the southern cities in the month of December with 67 per cent increase in new launches and 22 per cent increase in sales. Increased launches were majorly concentrated in the affordable segment.

 

  1. What are the major USP’s of your project? Why do you feel that it could be the trend setter in your region?

What truly sets us apart is that NVT is a company of professionals by professionals. The management team with professionals from IIT, Purdue & Wharton having sensibilities of professional lifestyle. When we moved to India and started the operations, we felt the professionalism and quality as some of the pain points of this industry. That was the time we decided to have our offerings reflecting our sensibilities and hence, we do not build villas that we ourselves are not comfortable in staying. Also our deep passion and engagement helps us to deliver results that somewhere meet ours and the client expectations.

 

We take Quality very seriously and this is an extension of ours as we have been into Quality Certifications for the past 3 decades, which reflects in every aspect of our business. Most of the specifications including  Flooring,Fittingsetc;  are from companies having Global presence. The materials and the processes involved in the construction are at extremely high quality and from some of the leaders in the category. Like for example: We only use handpicked Italian marble for following, wooden flooring from Sweden, windows from Germany.

 

We also pride in offering masterplans and floor plans that are created for the professionals. All our villas come with 2 car park, with large living and family spaces. 65-70% spaces in our gated villa townships are open spaces.

 

  1. What kind of special support you are getting from the Indian Banks facilitating the home loan for NRI’s?

The banks have supported us with dedicated resources  under  Single windows for NRI`s enabling  complete assistance,quicker response times and ease of documentation that can beperfectlymanaged without the need for undertaking anyspecial travel  to India for this purpose.

 

  1. Do you offer some special schemes and incentives targeting NRI’s?

We have some of the leading Banks as our partners in our project offering some of the best interest rates available in the home loans market for NRI`s.

 

  1. What is your opinion on the future of Real Estate in India?

India is a home to 1.3 Billion people and growing.As the urban societies continue to take a nuclear course, there is not a second thought in the fact that the demand for homes shall continue to grow.The affordability of the homes still remain a challenge for most of the Indian households and I think there has been a tremendous push by our government to minimize this gap to create affordable housing for all. Demand for residential properties has surged due to increased urbanization and rising household income. About 10 million people migrate to cities every year & 35 per cent of the population is in young age bracket (15-35 years).As per reputed analystsreports , the sector is bound to grow from current 135 Bn USD to 853 Bn by 2028,out of which 80% is the Residential Realty space .With the strong policy support from the government, the Smart Cities Projects, the RERA bill implementation in place, this seems quite achievable.

 

 

 

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