He started with stating that in 1976, when ULC – Urban Land Ceiling came in, he thought it was the most difficult time and over the years he worked on it and got the same scrapped.
Past Few years, have already been a little tough in the real estate sector and a lot of external factors have contributed however, the growth was also phenomenal.
Since independence, around 30000 Cr has been spent by State and Central Government on Development of MMR and now that number is around 300000 Cr (Ten Time) and that is a very positive sign, where in more than 300 KM of MMR region will have Metro, Coastal Road, Trans Harbour Link, Roads, Bridges etc.
The real estate market may take a hit of 10 – 15% in coming times and that may bring the traction back.
Banks will be very choosy in lending money from here on as they have never witnessed defaults ever. HDFC has max default ratio of .01% which is negligible but going forward this may change.
Construction activity is currently frozen and discussions are on with various Government Departments under his able leadership and he has promised that he will do what ever in his power to make things happen.
We need to learn from other businesses, as to how they perform and how do their costings.
Land and Supply is not in Short Supply, Demand now is in Short Supply.
It took him 25 years to Develop 250 Acres in Powai and 20 years odd in Thane and Panvel he has 500 Acres which he is continuing to develop slowly and steadily keeping a sharp eye on Demand and Supply. Build only what can be absorbed.
Developers will have to look at new sources of Capital Investments as Barter and Secondary Market Credit is Drying up.
His most important line, was look inwards now. “Save Cash”, “Slow Down any New Investment”
Housing will always be a need.
30 Years back there were limited Developers say around 100 Odd. Now there are more than 20000 Developers.
There has been a lot of Copying in the Developer segment, innovation has been very less.
He has requested the Government, that no one should file for Bankruptcy perhaps for a year or so.
He is engaging with Home Minister, PM, PMO, Home Secretary and doing all what he can do.
Prepared by Sandeep Sadh – www.propi.in – firstname.lastname@example.org