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Company Name : Hiranandani Communities

Monday, November 27, 2017 4:18PM IST (10:48AM GMT)

Real Estate Getting Back to being Preferred Option to Grow Wealth: Dr Niranjan Hiranandani, CMD, Hiranandani Communities

Mumbai, Maharashtra, India

Whether buying for personal use or as an investment option, to grow wealth: real estate follows a simple logic, says real estate Czar Dr Niranjan Hiranandani. “One must not wait to buy real estate, rather, the correct option would be to buy real estate, and wait,” he says. “The returns will definitely follow.” Dr Niranjan Hiranandani sees the importance of sharing this adage in light of the circumstances over the past one year, which witnessed a slow-down of sorts, and potential buyers and investors largely turned ‘fence sitters’. Real estate in India has undergone a paradigm change, beginning with Demonetization which effectively pointed it away from cash transactions as also black money. “Demonetization happened end-2016, that coupled with the imminent implementation of RERA and GST resulted in a major slow-down in terms of real estate sales. It was a domino effect - by the time RERA was in place, it was time for GST to be implemented, so till July this year, things were very slow, across segments of Indian real estate,” he explains.
Now that the initial impact of the new regulatory regime has worn off, things are returning to normal – albeit, under the new paradigm. And, fence sitters are turning into actual buyers. “The festive season in 2017 has started on a positive note, and across buyer segments and multiple locations, we are seeing the return on the home buyer,” says Dr Niranjan Hiranandani. Real estate’s positives kept making their presence felt, now things are improving even more - enhanced transparency because of RERA, GST bringing in single tax rate across the nation, these reforms have brought in positive sentiment at real estate projects across the country. “I see sentiments and eventually sales improving in the next 6-12 months. The reasons why include strong economic drivers, acceleration in reforms, high yields and a rapidly modernizing business base,” he adds.
Real estate is not just about homes for home seekers, it is also among the biggest employment generators he says, adding that a recent study by NCAER has revealed that every Rs One lakh investment in real estate translates into 2.9 jobs. In terms of business growth, there are various sectors that have a direct impact based on how real estate performs. "The obvious ones are cement, steel, paints, tiles, wood panels, luminaries, plumbing, adhesives, construction, chemicals and so on," he says. In sync with real estate is infrastructure, which the government is focusing on. “Higher spend on infra projects will generate employment, revive economic growth and ensure better GDP,” he adds. Large scale infra projects will boost construction and inter-dependant allied industries. It will open up new micro markets and peripheral locations of metro cities. Infrastructure is essential for growth of realty market.
At our projects in Gandhinagar (Gujarat), Oragadam near Chennai (TamilNadu) as also in Panvel and Thane in the Mumbai Metropolitan Region, I see infrastructure growth happening at a much faster rate than what it used to be. The Ahmedabad Metro in Gandhinagar, which links with the BRTS system; the proposed second airport for Chennai which is likely to come up near Oragadam; the Navi Mumbai Airport as also the railway linkages/ Trans Harbour Sea Link/ Ro-Ro Ferry services between South Mumbai – Nerul in Navi Mumbai – Alibaug, the coastal road, the metro lines – these are positive steps, and will definitely have a positive effect on growth in real estate.
Real estate offers a dual advantage - one, the scope for capital appreciation. Secondly, if one does not stay in the residential real estate unit, it offers scope for rental income. Real estate is fast returning to its position as an ideal option to grow wealth, one can take advantage of historic low EMIs and create wealth through real estate. When it comes to making a smart decision in terms of investing in real estate, those who spot the potential in present-day will be making the right choice,” concludes Dr Niranjan Hiranandani.

Click here for Media Contact Details

Ritika Shah, Hiranandani Communities, +91-9833461094, rshah@hrealty.com

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News Summary

Real estate in India has undergone a paradigm change, beginning with Demonetization which effectively pointed it away from cash transactions as also black money.