Mumbai Metropolitan Region: Real estate developers for affordable housing market post lockdown

Real estate developers across MMR look at the affordable housing market post lockdown, with office complexes, shopping centers/malls, and hospitality a blip on the market radar.

CREDAI MCHI has done a research paper by getting responses to questionnaire from around 500 of its members who are builders /developers in the MMR.

Titled "New Normal: Real Estate - strategies post Lockdown", the trend shows focus on hospitality development is just 1%, office space is 26% while residential at 49%. Managing committee member and builder, Rajesh Prajapati told TOI," largely it will be affordable housing, with the strategy to fund from own reserves and sales. Reliance on debt is a difficult ask during these times because there has been already a squeeze in the profit before tax, post demonetisation and withdrawal of input tax credit under GST."

"Affordable housing projects would be 600 square foot domains with price at Rs 45 lakh," said Prajapati.

The strategies underscore honesty and transparency with customers, quick completion of projects, " treat your employees and labour as your family," sustenance pay, avoiding job cuts, digital marketing and online campaigns to be the focus.

The survey pegs nine months to 12 months for normalcy to be restored in real estate, with 35% majority respondents looking at nine months. Prajapati said that the situation is "worrisome" and it would be one year for the real estate market to revive.

Would there be any price correction? "Slim chances as there's low margin in the industry."

But there was a strong possibility of acquiring new projects if valuations were lucrative, for 45% respondents said, "Yes, will acquire."

Sanjay Banerjee, The Times of India, Mumbai

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