On Wednesday, ‘Dainik Bhaskar Real Estate Conclave- 2024’ brainstormed for about 6 hours on the ‘five sources’ of earning profit in the real estate sector. On the theme ‘India: The next wave of growth in real estate’, well-known giants of the real estate sector shared ideas for earning profit with developers from across the country. During the last three years, there has been a CAGR growth of 38 percent in the real estate sector and this sector gives an annual revenue of 2 lakh crores to the government. Developers can get a 2 percent benefit in interest rate from corporate governance, this thing came up prominently in this conclave. Mistry said – Demand for commercial real estate will increase in small cities Former Vice Chairman and CEO of HDFC Keki Mistry expressed the possibility of increasing demand for commercial real estate in Tier 2 and Tier 3 cities. He gave detailed information about corporate governance. One of its major advantages was told that how it can give a 2% benefit on interest rate. Expressing hope of reduction in interest rate by 0.25% in near future, he said that the government should again start Credit Linked Subsidy Scheme (CLSS) for purchase of new house by middle income group (MIG). He said that about 3 thousand other different industries of the country are dependent on this industry. MD of Kotak Mahindra Asset Management said – Ready to give money to consumer brands Nilesh Shah (Group President and MD, Kotak Mahindra Asset Management) said – The current development cycle of real estate sector is expected to last long. On the consumer side, the demand for premiumization products is more and that of mass-market is less. Stand-alone projects will also sell a lot. Mass-market value base will remain. The demand for premium size products will be according to branding, because today consumers are ready to spend money on brand. He said that the borrowing cost of developers can be reduced by up to 2% if their branding is done correctly and the method of redressing consumer complaints is effective. HDFC MD Navneet Munot said – Developers should think big HDFC MD Navneet Munot said – The market of a Bhujia making company is Rs 18 thousand crore and there is talk of listing of another one at Rs 70-80 thousand crore. So the market of those who are building buildings is going to be even bigger. Therefore, all developers should think big. He said that the buyer of a flat gets a loan at the rate of seven to eight and a half percent, whereas it is difficult for the builder to get a loan even at 15 percent. This gap needs to be filled. Sideways Consulting founder said – Keep your brand strong Sideways Consulting founder Abhijeet Awasthi said – If developers keep their brand strong, then it is already settled in the hearts and minds of the people that when I buy a house here or where my office will be, there will be something good there. If the brand is good, then people are also happily ready to spend more money. Lodha Ventures Chairman said – Transparency is important in consumer governance Lodha Ventures Chairman Abhinandan Lodha said – Like corporate governance, we have used transparency and technology in consumer governance and in the last two and a half years, we have sold goods worth 5 thousand crores by plotting them, but we have not done any barfi cut profiteering anywhere. This is the reason why we sold a plot to the superstar of the century Amitabh Bachchan but never met him in person. Along with this, he told that we first understood the destination of the area and then developed it and sold its concept. Before doing this, we answered 5 questions that come to the mind of the customer. This includes questions like what will happen to the approval, what will happen to the finance, what will happen to the re-sale, who will build it and are the builders not wrong people? Chairman of Dosti Group said – There is a lot of potential in the market Deepak Goradia, Chairman and MD of Dosti Group said – We built and sold 3800 units and now we expect a growth of 40% in the coming time. This is because there is a lot of potential in the market. The real estate sector has seen a CAGR growth of 38% during the last three years. CEO of Prestige Group said – Worked in South India, now focus on the West Prestige Group CEO Tariq Ahmed said – Our group moves forward with financial discipline. We have worked a lot in the cities of South India and Bengaluru. Have also worked in Mumbai. Prestige Group is keen to work in Ahmedabad, Jaipur, Indore and other cities of Maharashtra in the future. Apart from this, we are also going to enter tier 2 cities of western India. Ananya Tripathi of Brookfield Real Estate said – Tier 2 cities will be tier 1 tomorrow Ananya Tripathi of Brookfield Real Estate Group said – Tier 2 cities are seeing good growth. Employment is also being created on a large scale there. The city which is being called Tier 2 today, will become Tier 1 in future. Grade-A asset is important for institutional capital investment. For this, there should be demand first. Niranjan Hiranandani said- Understand the market demand, then make the design. Niranjan Hiranandani of Hiranandani Group suggested to the developers from across the country that first study and then design the house. Understanding the market demand is a very important thing. Where there is demand for one room flats, one BHK flats should be built there. He suggested the developers to think long term and focus on improving infrastructure. The real estate sector gives an annual revenue of 2 lakh crores to the government. Dainik Bhaskar Group Director Girish Agarwal said- The market size of Indian real estate is around 40 lakh crores. It contributes about 7.3% to GDP. This sector is number-2 in providing employment in the country. Research shows that the real estate sector is growing at 11% per annum. This sector generates a revenue of Rs 2 lakh crores for the government through stamp duty and registration annually. During the panel discussion of prominent developers like Vikram Bharwad (Ahmedabad), Sanjay Gupta (Jaipur), Devendra Chouksey (Bhopal), Abhishek Jhaveri (Indore), Anand Singhania (Rajpur) and Prateek Mittal (Chandigarh), a good suggestion came up that such workshops should be held in all the cities of the country.
