The optimism of Q2 2021 in the residential market will continue in the months to come, said Sachin Gawri, Founder & CEO, Rise Infraventures Limited. Even in the eventuality of a third wave, the sales figure will hover close to the pre-COVID levels, he said in an interview.
The following is the text of the interview:
Question: What will be the impact of the third wave on the real estate segment?
Answer: The sentiments of real estate stakeholders are optimistic, and Q2 2021 showed the path despite the second wave that struck during this period. If we analyse the reaction to the second pandemic wave, which was not as severe as it was during the first wave, we could easily foretell the outcome of the third wave. The optimism of Q2 2021 in the residential market will continue in the months to come; we continue to expect an increase in residential launches and sales in the coming six months. The second wave brought in the trend of luxury homes with a marked increase in the number of launches in the premium and luxury segment. Almost 30 per cent of the units launched in Q2 2021 in Delhi NCR fell in above Rs 1-crore price band.
Q: When do you expect the sales to reach pre-COVID levels?
A: Going by the market response of Q2 2021, we expect the market to reach pre-COVID levels in the coming six months. Even in the scenario of the third wave, the sales figure will hover close to the pre-COVID levels. There are healthy economic growth projections for this year and 2022; IMF has projected that this year India’s economy will grow at a rate of 12.5 per cent, and in 2022 the growth will be at 6.9 per cent, which is above the projected growth for China at 5.6 per cent. The concerted efforts of various industries and the government bode well for an individual’s financial health, leading to an increased interest in the real estate sector.
Q: Give us some insight into Gurugram’s real estate market.
A: Post-pandemic, the residential market in Gurugram is witnessing green shoots in the form of areas in demand and configurations being favored. A few areas such as Golf Course Extension Road and Dwarka Expressway warded off the ill-effects of COVID as they recorded maximum enquiries for larger units falling in the premium and luxury bracket. In the first half of Q1 2021, the number of launches came down as developers concentrated on offloading their existing stock. In the April-June quarter, the maximum demand in the Gurugram region was for units priced above Rs 1 crore, followed by units falling under the price bracket of Rs 40 lakh to Rs 1 crore. The change in demand dynamics in Gurugram is pointing towards the perception of Gurugram as the best place to buy premium and luxury houses, which is cemented by the presence of quality projects in the segment.
Q: Tell us about your expansion plans.
A: We plan to achieve cumulative sales of Rs 2,000 crore by the end of FY2021-2022 and open an office in Delhi in the second quarter, followed by Mumbai in the third quarter. We are already achieving a gross monthly sale of Rs 100 crore through our Gurugram office. We aim to handle 20 exclusive projects by September 2020. We expect a gross sale of Rs 30-50 crore from the Delhi office starting from the third quarter and Rs 150 crore monthly gross sale from Mumbai, which will be operational by October 2020. The markets we intend to explore are well-considered because they are economic hubs with high demand for real estate investments. The best aspect is that demand is unrestricted, as investors and customers seek out reputable projects in a variety of commercial and residential categories.