Real estate has seen infusion of a lot of technology and new marketing strategies in the recent past and the year 2021 is most likely to see a new wave of efficiency with higher deliveries of properties and even more professionalism in the sector.
The real estate sector has been going through a transition phase in the country for the past few years with many changes being brought about by the legacy players in the way they market their projects and approach customers. There have also been a number of new entrants in the field who have impacted the sector in more ways than one.
The sector has seen infusion of a lot of technology and new marketing strategies in the recent past and the year 2021 is most likely to see a new wave of efficiency with higher deliveries of properties and even more professionalism in the sector as several stressed projects get picked up by companies who have expertise in turning around stalled projects. This will usher in a new energy and enthusiasm in the sector which currently has around 220 stalled projects in the top cities of the country.
The sector is poised to bring changes in the way the game is played and many of the large players have realized that deeds speak much louder in real estate than words. Thus, they have stepped into 2021 with complete focus on deliveries, as it is giving out actual possession of properties that will delight customers and bring in recognition for them. A huge number of properties are lined up for delivery in various parts of the country, especially in the micro market of Yamuna Expressway. There are many established real estate companies in this micro market and together they have scheduled deliveries of over 12,000 homes in the coming months.
The Gaurs Group, one of the largest real estate firms in the country, claims to have already handed over 5500 properties to the buyers since the 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 were able to get back workers on our construction sites soon after the lockdown was eased by the government. Thus, we have been able to deliver over 5,500 properties and we are now expediting the process of handing over another 1,500 properties. This would be done in the coming weeks, latest by March 2021. 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.
Even the Mahagun Group, a noted name in the world of real estate, is working towards delivering 2100 homes in the next few months. “We have deliveries lined up in various housing projects like Mahagun Meadows, Mywoods Marvella, Mezzaria and Mirabella. We have employed extra manpower at the sites to hand over these properties,” said Dhiraj Jain, Director of Mahagun Group.
A sizeable number of deliveries are also scheduled in 2021 by Ajnara India, a leading real estate developer. The firm plans to deliver 2,400 houses in Delhi NCR this year. “We are very optimistic about handing the possession of over 2,400 homes in Ambrosia, Panaroma, Le Garden and Integrity to our customers this year. We are going extra mile this year to please our buyers and live up to their expectations,” said Ashok Gupta, CMD, Ajnara India.
Gulshan is also planning to deliver a massive area across their luxury units by the end of 2021 along the Yamuna Expressway. “We are relentlessly working and are planning to deliver 3 million sq ft over the next 12 months,” said Yukti Nagpal, Director, Gulshan.
Commercial real estate developers are not far behind. They are also coming up with their hectic schedule of deliveries in 2021. Spectrum Metro, a real estate player in retail and commercial properties, has scheduled handing over of 600 shops in its iconic retail project – Spectrum Metro, Noida. “We are happy to announce that we will deliver over 600 shops to our buyers in Phase 1 of Spectrum Metro project this year,” said Sagar Saxena, Project Head, Spectrum Metro.
Even as developers are focussing more on deliveries this year, they are also eyeing stressed assets and are turning them around, bringing in higher efficiency in the industry and also heralding a new beginning in the sector whose image has been marred by certain events. The latest data says there are over 1.74 lakh homes stalled for more than 7 years in the top cities of the country. Around two-thirds of it have been sold to home buyers who are stuck at the moment, according to a report by property consultant ANAROCK. However, there is a silver lining in the cloud for these buyers. There are many real estate companies that are now coming forward and taking up the stalled projects one by one and turning them around.
The real estate companies that are picking up stressed assets claim to have a big team of trained professionals who have expertise in diverse real estate scenarios in India and abroad. They are willing to buy stressed projects and investing their personal funds and also committing to a deadline to deliver the homes to the buyers in a disciplined manner. One such firm is Migsun. The company has bought out Ansal API’s entire stake in an IT Park in Greater Noida which will have about half of the space for IT/ITeS offices, around 15% for industrial and another 15% for commercial development. Migsun has also picked up HDFC’s entire stake in the project and now owns 100 percent in it. “Although it was a stressed asset, we saw a lot of value in it. We are confident of turning it around in a time-bound fashion,” said Yash Miglani, MD, Migsun Group.
Another facet of the development is that the real estate company facing financial constraints will have to get some amount from stalled projects which will help in paying off its debt, wholly or partly. In this case, Ansal API will get Rs 11 crore by selling off its 66 percent share in the project and will clear the dues of its lenders with this money.
Even Delhi-NCR-based 360 Realtors is coming up with a sizeable corpus for taking over stressed assets in the country. 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. Industry sources say 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.