Real Estate alert! Will 2021 see new wave of efficiency, higher deliveries and possession for home buyers? EXPERTS DECODE

Undoubtedly, the real estate industry has been going through a transition phase from the brick and mortar image created for the past few years, to a modern well-structured and professional business. Further, this has been a possibility due to the changes introduced by the seasoned players in their marketing and sales pitches. The industry has also witnessed entry of  some new but strong players in the field who have impacted the industry in various manners.

Moreover, the industry is poised to bring changes after the pandemic induced lockdown, when the physical interactions reduced to a great extent and the only mode to engage was online. The year 2021 is likely to see a new wave of efficiency, with such changes introduced. 

The sector can expect higher deliveries of properties and even higher degree of professionalism in the sector as several stalled projects get picked up by stressed asset management companies. This will usher in a new energy in the sector which currently has an average inventory overhang of 47 months in the prime 8 residential markets as per the recent Oct-Dec quarterly report of PropTiger.com. 

Now, reputed industry players have realized that this is the opportune time, buyers sentiments towards properties have changed, and deeds speak much louder in this industry than words. Thus, they are entering 2021 with complete focus on deliveries, as nothing apart from the actual possession of properties will delight their customers and bring in recognition for them. A good number of residential properties are lined up for delivery in various parts of the country from metros to Tier II-III cities.

Gaurs Group has already handed over 5500 properties to the buyers since easing of lockdown and is fast-tracking the process of delivering another 1,500 properties by March 2021. The company has given possession of flats, office spaces, plots and shops. “We have been a delivery-focussed real estate company and the customers remain pivotal point around whom our business revolves” said Manoj Gaur, CMD, Gaurs Group.

The real estate developers from Tier II-III real estate markets are not far behind. They are also coming up with their hectic schedule of deliveries in 2021. Sushma Group from Chandigarh Tricity has claimed to give possession of another 812 units by the end of FY 20-21 across seven projects. To push these possessions, the Group has invested Rs 50 crore till date and plans to invest Rs 50 crore more this financial year. While talking about the possessions and Tricity’s realty market, Prateek Mittal, Executive Director of Sushma Group said, “In Tricity’s realty market, there is a lot of NRI population in neighbouring states of Punjab & Haryana. Post-Covid the scenario is likely to change further as many people have already migrated to tier-2 cities. The demand was already on the up before the coming of this pandemic, and it is likely to go further northwards. Movement of businesses and employment centres, townships with mixed developments, etc. in such tier-2 cities are the main catalysts for the growing demand for residential and commercial real estate as well.” 

Hero Realty says in the beginning month of 2021 it has offered possession of 277 flats in Hero Homes Mohali Phase 1 spread over 18.49 acres. “Mohali has emerged as one of the top development zones in North India since the last decade. With its well-planned infrastructure and world-class facilities, the city has become the preferred residential destination for aspirational homeowners. The region boasts top-of-the-line amenities, convenience, connectivity and security, the city has been awarded the highest rank amongst all cities of Punjab, making it a perfect space for emerging middle-class in India. We are proud to have a presence here, and are working diligently to fulfill the aspirations of people,” says Nagaraju Routhu, CEO, Hero Realty.

As the offices and commercial centres begin to reopen in full fledged manner, the face of commercial realty is all set to change.The concerns of health, hygiene and wellness would invariably lead to the consolidation of the industry in favour of organized developers. More and more developers are likely to launch offerings that provide a sanitized environment and an array of wellness amenities catering to health-conscious customers. One such project in the burgeoning micro market of Noida is Alphathum by Bhutani Group. The project recently received the completion certificate for the phase I of Alphathum. The certificate is for Tower B & C, with total area of the project being 39 lakh sq ft out of which 21 Lakh sq ft is ready for possession.Located in Sector 90, this project will also be home to the world’s largest rooftop infinity water body with a well- designed zen garden.

Commenting on the development, Ashish Bhutani, MD, Bhutani Group, says, “Alphathum promises to deliver the most resourceful business towers in India integrated with intelligent technologies. The idea behind all our projects is to present the people of Noida with iconic structures that will add value to their lifestyle. The projects offer great office space location for top companies looking for space in the city. With plenty of residential development happening in Noida, the projects enjoy great catchment for both offices and retail spaces.”

Even Delhi-NCR based 360 Realtors has partnered with Rising Straits Capital to launch a Rs 100 crore stress fund to provide last mile financing to builders. There are other new-age real estate players that are entering the fray armed with expertise in turning around projects. There is strategy solution provider BlackOpal which intends to pick up some stalled projects in 2021. This relatively new phenomenon of stressed assets getting bought over will also help bring down about 1 lakh crore of loans real estate companies have taken that have been categorized as “severely stressed” by banks.