Demand for affordable homes in satellite cities

ONE of the best things that has happened to the Indian real estate sector is the implementation of the Real Estate Regulation and Development Act - known popularly as RERA - which will boost the prospects for this vital industry over the coming months.
Says Mohit Arora, the Delhi-based Managing Director, Supertech Ltd: "Whatever business flows in now after the implementation of RERA will be clean and the sector will become organised. Following the implementation of RERA, only ethical and serious players are left in the market."
According to him, the industry has become "100 per cent transparent," after the implementation of the act. "The Indian real estate industry will become like the one in Dubai, where everything is transparent - including details about the approvals, the completion dates and the amount of money to be paid - and all the information is available on web sites and accessible to the public," he explains. "Indeed, the entire scenario of the Indian real estate sector has changed now."
The last two years have seen a lot of ups and downs, especially after demonetisation of the Indian rupee and the introduction of RERA and GST. "I would say 2016 and 2017 were turbulent years for the Indian real estate sector," he notes. "But by the end of 2017, we've seen positive signs of a comeback and everything is getting stabilised now and more so in the affordable segment."
Arora points out that the situation in the mid-segment and affordable segment is very good at present. "The coming years will see the industry become more stable and expand rapidly," he adds.
The implementation of the Pradhan Mantri Awas Yojana, which aims to develop affordable housing on a partnership basis, is encouraging first-time buyers to acquire homes, he says. 
"The affordable home sector is booming, even in places like Gurgaon and Noida," says Arora. "In Gurgaon, there are properties available for less than Rs10 million and in Noida for around Rs5 million. We haven't seen such huge volumes before."
Interest rates have also come down to 8 to 8.5 per cent for these properties, encouraging newcomers to buy apartments in the affordable scheme. 
Of course, the growing demand for affordable homes in satellite cities like Noida has resulted in scarcity of land. "About 70 to 80 per cent of land in Noida has already been acquired," he says. "But there are new areas opening up, especially along the Yamuna expressway."
The government's plans for a new international airport south of Greater Noida is also expected to boost the property market in the area. Supertech is developing two township projects in the area.
Established nearly three decades ago, Supertech has developed several landmark projects and is a pioneer, launching the concept of mixed-use development in India and high-rise construction in the north. 
The company is developing Supernova, which with its 80 floors, will be the tallest building in north India and covering 7 million square feet of space.
About 90 per cent of its business is in Noida and Gurgaon. Arora points out that the group is developing 50,000 houses in Noida on about 1,500 acres of land and another 30,000 in Gurgaon over 500 acres of land. "We have a total of 40 projects in these two cities," he adds.
Besides this, the company has projects in Bengaluru, Hardwar, Rudrapur, Dehradun and Meerut. 
The company has also raised Rs8 billion from non-banking finance companies, including one from a U.S.-based fund. 
Supertech is also active in the commercial space, with significant investments in retail, office and
hotel space. 
Importantly, the group is now looking at overseas expansion and plans to open sales offices in Dubai and London. "We are also looking at taking up a development project in the mid-segment residential sector in London," he adds.
 

• India