Sentiments move up as launches increase

Liquidity is the most critical issue, and it must be handled immediately. Furthermore, delays from the Government must be avoided for the project to be completed faster, says Navdeep Sardana, Chairman and Managing Director, Elite Land Base.

Q. As we enter the third year of pandemic which is 2022, how is it going to be for the overall real estate market?

A. The housing segment had a 250 per cent increase in sales q-o-q in Q3 2021 and buyers have faith in the sector as the most advantageous resource class, eschewing gold, equities, fixed deposits, and other options. Given the renewed importance of buying a property amid the pandemic, boosted by the work-from-home trend and low home loan interest rates, buyers’ sentiment will stay favourable for the foreseeable future, giving the industry an optimistic outlook. Furthermore, investors seeking assured higher returns will be seen flocking to commercial real estate in 2022.

Q. How has been the sales momentum so far?

A. Compared to other metros such as Mumbai, Bengaluru, Hyderabad, Pune, and Chennai, sales in Delhi/NCR were slow during the pandemic. However, in Delhi-NCR, Gurugram alone contributed to approximately 37 per cent of total sales. Elite Landbase sold properties worth Rs 450 crores in the first quarter of FY 2021-22, and Rs 425 crore during the festival period; last year’s festival sales were around Rs. 290 crore. Based on the current pace, we believe the market will reach pre-COVID levels in the next six months. Projection of healthy economic growth for this year and 2022 bodes well for the real estate sector.

Q. How has been the new launches scenario. Has it contributed positively in any way to the real estate sector?

A. At the start of 2021, the launches were few, but demand was high, which helped the real estate sector dispose of unsold inventory. However, new launches increased by 86% y-o-y on Delhi NCR to the end of Q3 2021. The timely increase in the launches has created a positive environment for the buyers as they have options to choose according to their budget requirements. Not everyone is comfortable buying in the secondary market, where prices are generally higher. Also, the percentage of new launches in every segment is as per the demand in the market, which will mean higher chances of successful projects.

Q. What is the status of deliveries, especially in Gurugram market?

A. The Gurugram market in Delhi NCR, according to several reports, is performing well on many fronts, including the liveability index. In the next 36 months, the city expects to see roughly 50,000 units delivered. We can say that the top developers alone will provide more than 30,000 units in Gurugram because we are dealing with them. Liquidity is the most critical issue, and it must be handled immediately. Furthermore, delays from the Government must be avoided for the project to be completed faster.

Q. Do you see consolidation in the sector as an aftereffect of the pandemic?

A. As the ongoing consolidation continues to wipe out small-size companies from the sector; larger real estate players are likely to increase their footprint. However, we cannot call it an aftereffect of the pandemic because it began with RERA, which streamlined the sector and turned it into a place for people with the resources to implement projects properly.