The real estate sector, especially in Maharashtra, saw a strong boost in sales with the reduction of the stamp duty rates clubbed with low interest Bank rates and a plethora of offers by developers.
Arihant Superstructures Limited (ASL), a leading developer with project across MMR, Navi Mumbai and Jodhpur, has nearly 12 million square feet under-development and is quite positive on growth in FY 2021-22.
Manish Joshi from NewsBarons connects with Ashok Chhajer, Chairman & Managing Director of Arihant Superstructures Limited who informs ‘The major section of home buyers are End Users; as the Investor section have been less active during this Covid situation’.
NB: How did the brand fare in 2020. How are you looking at closing FY20-21.
Ashok: The Brand performed quite well in the FY20-21. We sold over 1100 units in FY20-21, which is a 35-40% growth over FY19-20. With the same momentum and the planned project launches, we anticipate closing FY21-22 with around 2500 units.
NB: How do you see demand growing in FY2021-22.
Ashok: There is a significant shift in people’s mindset post pandemic which has reinforced the need of owning a house. Historically low interest rates and other government initiatives have given boost to the industry. It is already seen as a beginning of a new growth cycle especially for cities like Mumbai and Navi Mumbai where we are seeing good pickup in demand. The present situation of COVID has also raised a sense of Home buying in General public, so keeping in mind the present situation there seems to be a growth in demand of new home buyers.
NB: What impact on sales do you perceive with the withdrawal of the Reduction in Stamp Duty.
Ashok: The withdrawal of reduction in stamp duty will have an immediate impact on sales but slowly and gradually the market will normalize and adapt the changes in regulations and policies.
Just to ensure the clients can still avail the same benefit and get little more time to accept the Stamp Duty correction, Arihant has announced to offer the reduced stamp duty benefit to its clients across all projects for the month of April 21
NB: What are the challenges for the real estate industry, at present.
Ashok: There has been a considerable progress in reforms with GST and RERA being implemented, which has enabled the customer to differentiate the sound developers from the rest. However, the government’s further support in terms of ease of approvals, reduction in premiums, land reforms, rationalization of direct and indirect taxes and transaction costs for end consumer amongst others can go a long way in making the industry more mature. This will eventually help the bigger and stable brands to venture out more in the industry and expand in terms of newer geographies and attract investments from the market.
NB: How has the demand been across Luxury Homes in 2020. Do you see any considerable growth in this segment in 2021.
Ashok: There is an increase in demand for the Luxury Homes across this region, looking at this trend we are planning to launch a series of Super Luxury and Luxury Home projects in the most awaited location of Navi Mumbai.
To give a view of our projects, Arihant Aalishan at Kharghar and Arihant Aspire at Palaspe, Panvel are premium Lifestyle projects. Arihant Aalishan, to be the tallest towers in Navi Mumbai, is based on Persian theme giving a very classic and royal living experience and Arihant Aspire is a 16 acre Organic theme based living experience with large open spaces.