DLF Universal: Ahead of the game

FOR the real estate industry in India, 2016 will be a lot brighter for several reasons, says the top executive of a leading developer.
"Many investors, who came into the market over the last five to eight years expecting phenomenal returns, have found exits or corrected their investment portfolios," explains Ananta Raghuvanshi, Executive Director, Sales and Marketing, DLF Universal Ltd. "But long-term investors are still there and expectations are very realistic, which is good for the industry."
Raghuvanshi says that investors now have a three to five year horizon, which is good for all.
Another factor for her optimism is that most developers are focusing on completion of existing projects. DLF Universal, for instance, has completed most of the projects it had launched over the past few years.
"We are giving possessions in New Chandigarh, Lucknow, Indore, Delhi, Bengaluru, Kochi and Chennai, both in residential and commercial segments," adds Raghuvanshi. "We have delivered on whatever promises we had made," she adds. "And because of this, the resale market is going up."
Many other leading developers have also given possession of apartments to buyers. Raghuvanshi also notes that many positive things are happening in the industry, especially in the National Capital Region (NCR). "There is rapid improvement in the infrastructure, with the metro expanding to other areas, and new flyovers and expressways being built."
The National Green Tribunal has also clarified many issues and clearances are coming through swiftly.
"Investor confidence is back," she says. "End-users have always been there in the market." For DLF as a group, "this is our golden period," explains Raghuvanshi. "Today, we have products ranging from Rs1.5 million to Rs500 million. We have something for everybody."
In Indore, DLF Universal is selling plots ranging from Rs1.7 million to Rs2.5 million; in Lucknow it is offering properties ranging from Rs4 million to Rs15 million, and in Delhi it has products ranging from Rs30 million to almost Rs500 million.
"We are present in the value, affordable, mid-segment, upper-segment, luxury and uber-luxury categories," points out Raghuvanshi. "We are also in commercial and residential." Both segments have bounced back, she avers.
One of the categories that is expected to do well is mixed-use development. "It gives people the freedom to use space in whatever way they want," says Raghuvanshi. "In Lucknow we have one such project called DLF City Centre."
The ground and first floor are ideal for retail, while the second floor features studio apartments. This is good for professionals such as doctors, lawyers and fashion designers. Referring to Gurgaon, she says it continues to remain a healthy market.
Banks are also helpful and are offering consumers subvention schemes, easy and customised loans.
When asked about the NRI market, Raghuvanshi says their confidence in the Indian real estate sector has returned. "We have a lot of people from the Middle East investing in our project in Lucknow," she says. "NRIs and Persons of Indian origin are looking at India seriously. And leasing is back on track, with rentals picking up again."
Many overseas Indians, because of uncertainties in different parts of the world, are eager to have their own place in India. Many of them have ancestral properties, which are being sold. They would like to invest in a home of their own in India, she says. "We get many calls from Indian-origin Americans who are looking for opportunities in India," adds Raghuvanshi.
And with the rupee depreciating sharply against the dirham and the dollar, NRIs are showing keen interest in investing in the Indian real estate sector, as it has become affordable. "The quality of properties is also commensurate with what they see internationally," says Raghuvanshi. "The standard of our developers and their projects is on par with international ones."
As long as customers have realistic expectations and developers are transparent, the industry will do well over the coming years, she adds. "The last two years were not the easiest for the sector, and a lot of lessons have been learnt by the industry, which in the times to come will prove beneficial."
Raghuvanshi notes that when one deals with tough times, one comes out stronger and does the right things. "Even customers are wiser now," she says.
DLF Universal, which is present across 16 cities in India, will be coming out with some new launches after April. "We are ready with a three-year plan and will unveil them in due course," she adds.

• India