With a legacy of over 200 years, the renowned Dubash family, recently announced its foray into the real estate sector with the launch of a 31 acre micro township in Kharadi, Pune. The family which has its presence in shipping and across other diversified segments timed its foray into the developing space post the RERA announcement and believes that this announcements has created positive consumer sentiments that will boost the residential segment with the rise in demand for the under construction properties.
Manish Joshi of NewsBarons provides excerpts of an interaction with Tushad Dubash, Director – Duville Estates who states ‘We adhere to clear business principles which ensure that our fiscal goals are realistic and in tandem with what we can deliver under time-lines and under the highest standards of quality’.
NB: Your foray into Real Estate has been time defined?
Tushad: We have held land banks in Pune since the last few decades. The positive steps being taken by the government (RERA) has boosted and secured customer confidence in the country and we felt that this was the best time to register our presence in developing space. With RERA, the norms for development have become far more stringent and only those developers who have access to capital and are well secured will continue to develop land and construct. Further, reputed houses and brands will continue to sell and provide homes across different strata in society.
NB: Why focus on Kharadi to begin with?
Tushad: Kharadi represents possibly the best opportunity for development as the infrastructural connectivity there is arguably the best in the developing centers of Pune. Kharadi has withstood the price turbulence witnessed across other micro-geographies within Pune and is the fastest growing geography for IT. The upcoming commercial IT SEZ development by K Raheja, the next phase of EON and several other IT Hubs that are in development will contribute to the residential demand that will burgeon. The location is well supported by social infrastructure like education institutes, medical centres, retail and recreational zones. The airport also is at a drivable distance of 30 minutes.
NB: Residential segment has hardly seen any momentum across major metros. Would not that impact your launch too?
Tushad: Pune has been one of the most resilient markets in terms of waning demand that has ensued because of the landmark legislations that has impacted the sector. There has been significant demand for Under Construction properties unlike other metros and cities which have witnessed a huge fall in under construction properties vis-a-vis ready–to-move in properties. In the Kharadi micro market, demand for good residential property exists because of the rapid growth in IT/ITES in the immediate catchment.
NB: Post RERA, have you witnessed customer acceptance towards under construction properties?
Tushad: Unlike other metros, where buyers have demonstrated a strong preference for ready-to-move in apartments, Pune has witnessed a steady skew in terms of interest in under-construction projects. The implementation of RERA and GST has fostered transparency and an assurance of delivery which has further helped boost demand for under-construction developments and helped create an environment that is more conducive to foreign investment also.
NB: Share with us your outlook on the real estate sector?
Tushad: Real Estate Regulatory Authority Bill (RERA) has brought more transparency and professionalism into the sector. These changes have some positives and ambiguities. It is a positive move for developers with established corporate governance practices and it has created a clear demarcation between reputed developers and those with less respect for corporate governance thus making it easier for investors and end-users to invest risk-free. I also feel that the customer buying preference would move towards those players who are well-capitalised and whose construction finances have been well-secured.
NB: Your thoughts on the Budget?
Tushad: Budget 2018-19’s focus on infrastructure and the Smart Cities initiative is a positive move for the real estate sector and Pune in specific. The Smart Cities Mission to develop 100 cities across India would also harness the Information Communication Technology (ICT) capabilities. Pune comes under the government’s Smart City initiative and the allocation of INR 2.04 lakh crore towards the listed 99 Smart Cities will serve well for Pune’s real estate market. Pune’s real estate is one is the lesser impacted markets in comparison to the other key cities and have proved to be one of the more resilient markets in the country. Infrastructure is a growth driver for the country and the budgets focus on infrastructure and connectivity will have an impact on not only the real estate sector but the economy on the whole.
NB: Tell us about your project ‘Riverdale’?
Tushad: Riverdale is a 31 Acre Upscale Micro-Township with a very clear vision on segmenting the product offering not by demographic consideration but by psychographic need states. We have an assortment of offering right from a compact 1 BHK called Riverdale Suites, larger 1 BHK & 2 BHK called Riverdale Heights, 3 BHK that comes in 2 sizes called Riverdale Residences and a fantastic 4 BHK (combination of 2BHKs). We have appointed Shapoorji Pallonji as construction partners and UHA London (master planners) and WAHO (landscaping).
I would term our offering as being bracketed within a premium range with an exceedingly high Value for Money delivery quotient.