Delhi-NCR has a highly competitive real estate market, with numerous developers vying for buyers and investors. Standing out in such a crowded market requires offering unique value propositions, maintaining quality standards, and ensuring customer satisfaction, says Yashank Wason, MD, Royal Green Realty.
In an exclusive interview with Sanjeev Sinha, Mr Wason talks about real estate’s focus on sustainability and the challenges faced by the sector in Delhi NCR. Excerpts:
In recent years, sustainability and eco-friendliness have become important factors in real estate development. What are your views on the same?
In the new world order, it has become essential to focus on creating healthy and comfortable living environments. Features such as natural lighting, efficient ventilation systems, use of non-toxic materials, and proper waste management contribute to improved occupant well-being. The integration of sustainability principles in real estate development promotes environmental stewardship. Also, incorporating sustainability features in real estate projects can enhance market competitiveness. With growing awareness and demand for eco-friendly properties, developers who prioritize sustainability are better positioned to attract buyers or tenants.
Not only India, governments around the world are implementing policies and regulations that promote sustainability in real estate development. Such support encourages developers to adopt sustainable practices and helps drive the evolution of the real estate sector toward a greener future. Additionally, the focus on sustainability has spurred technological advancements and innovation. Developers and industry professionals are exploring new materials, construction techniques, renewable energy solutions, and smart technologies.
Overall, the focus on sustainability is reshaping the way real estate projects are conceived, designed, constructed, and operated, leading to a more environmentally-conscious and resilient-built environment.
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What challenges are the realty sector or real estate developers facing in the Delhi NCR region?
Generally speaking, the biggest challenge is that the real estate market is subject to fluctuations, influenced by factors such as economic conditions, government policies, and buyer sentiments. Developers have to carefully analyze market dynamics and adapt strategies to meet changing demands and preferences.
Land acquisition is a significant challenge in the Delhi NCR region due to limited availability of suitable land and high land prices. Acquiring land for large-scale projects can be challenging, especially considering the fragmented land ownership patterns and legal disputes over land titles.
A large number of developers in Delhi NCR are facing problems in access to financing, particularly small and medium-sized developers. Stringent lending practices, high interest rates, and liquidity constraints in the banking sector hinder project financing and impact the viability of projects.
Additionally, there is a significant demand for affordable housing in Delhi NCR due to the region’s growing population and urbanization. Real estate developers face the challenge of balancing the demand for affordable housing with the rising land and construction costs, often requiring innovative approaches to provide cost-effective housing options.
We have to understand that the Delhi NCR has a highly competitive market, with numerous developers vying for buyers and investors. Standing out in such a crowded market requires offering unique value propositions, maintaining quality standards, and ensuring customer satisfaction.
What future trends do you foresee in the real estate market in Delhi NCR?
The Delhi NCR market moves in sync with the movement of real estate across the nation; so, the trends entering this region are mostly the mood of the nation, barring a few handful region-specific developments related to the distance from the Capital, which still is relevant here unlike metros such as Mumbai where MMR has stretched out to far off areas.
The demand for affordable housing will continue to be high in many parts of India, including Delhi NCR. This trend is likely to continue as developers and policymakers aim to address the housing needs of the middle-income sections of society. The concept of mixed-use developments, combining residential, commercial, and retail spaces in a single project, is likely to gain popularity. In Delhi NCR, where urbanization and population density are high, mixed-use developments would be an attractive option for both developers and buyers.
Talking about Delhi-NCR-specific trends, I would say that movement towards new NCR locations that have excellent connectivity and provide greener peaceful environment to the residents will pick up pace. The continuous improvement in connectivity through expressways such as Dwarka Expressways, Meerut Expressway, etc., is feeding new locations that fit the livability parameters of the people working or living in the Capital or its neighboring regions.
How should the realty sector address potential homebuyers’ concerns regarding affordability and housing options in Delhi NCR?
Addressing potential homebuyers’ concerns regarding affordability and housing options in Delhi NCR requires a multi-faceted approach. The homebuyers’ demography in Delhi NCR is diverse and influenced by various factors such as income levels, occupation, age, family size, and lifestyle preferences.
Working professionals often seek residential properties close to their workplaces for convenience and reduced commuting time. Millennials and young families tend to prioritize factors such as connectivity, lifestyle amenities, and proximity to educational institutions when considering housing options. Then we have a significant number of high-income individuals with a preference for luxury or high-end properties. On the other hand, NRIs look for investment opportunities, a second home, or a future retirement option.
Developers have to relentlessly design and market projects to appeal to specific target segments based on their preferences and requirements. They have to prioritize the construction and promotion of affordable housing projects in Delhi NCR; this includes projects that cater to the middle-income and economically weaker sections of society. Land is a valuable resource in Delhi NCR, and maximizing its utilization is crucial for affordability. Developers must explore options such as compact housing designs, vertical expansion, mixed-use developments, and efficient space planning to optimize land usage and offer more affordable housing options.
Collaboration between real estate developers and government bodies through public-private partnerships (PPPs) can help address affordability challenges. Such partnerships can leverage the expertise and resources of both sectors to develop affordable housing projects and provide financial support. Also, the need is to consider innovative housing models to address affordability concerns. This may include options such as cooperative housing, rental housing schemes, rent-to-own programs, and shared equity arrangements.
It is important to understand the needs and aspirations of potential homebuyers, collaborate with stakeholders, and adopt innovative approaches to create a more inclusive and affordable housing market.
What inspired you to become a real estate developer, and why did you choose to focus on the Delhi NCR market?
I was drawn to the real estate sector due to a genuine passion for architecture, construction, and creating tangible assets. I find joy in transforming ideas into physical structures and contributing to the built environment. The sector allows for creative expression and innovation in design, construction techniques, and sustainable practices. This aspect appealed to me individually, as I enjoy pushing boundaries and bringing fresh ideas to the market.
Regarding the focus on the Delhi NCR market, it would depend on the individual’s specific circumstances, market analysis, and opportunities. Delhi NCR is a significant metropolitan area with a growing real estate sector, driven by factors such as rapid urbanization, employment opportunities, and population growth. I chose to focus on Delhi NCR due to the potential for high demand, favorable market conditions, infrastructure development, and also personal connections to the region.
What key projects has your company undertaken in the Delhi NCR region? How do you ensure that your projects align with the needs and preferences of the buyers?
We have so far delivered four projects in Delhi NCR, including, Royal Green Homes (Bahadurgarh), Royal Green Industrial-Park (Jhajjar), Royal Green Heights (Gurugram), Royal Green Courtyard 62 (Gurugram). Our affordable housing project Royal Green Heights in Sector 62, Gurugram, received tremendous response as it attracted 5344 applications against 305 units after the second draw. The project under the Haryana government’s Affordable Housing Policy was spread over 5.8 acres of land where we reserved 50% of space for green landscape.
Courtyard 62 is a mixed-used commercial development in Gurgaon, Sector 62 surrounded by 24 meters and 12 meters road from 2 sides, providing perfectly built retail and commercial shops. Royal Green Industrial-Park (Jhajjar) on the Bahadurgrah-Beri Road (NH-122) is the ideal solution for all mid-and large-scale companies catering to the demands of the North Indian market. It is an approved Industrial Park that offers A-Grade solutions, including wide roads that accommodate 40 feet containers, increased security, a dedicated electrical sub-station, rainwater harvesting, and improved sewage treatment.
We recently sold out the phase I of Royal Green County in Sector 40, Bahadurgarh. Spanning 40 acres of land, the project offers a diverse range of residential options, including villas, floors, and plots, along with a commercial complex known as Courtyard 40 – Market Place. We plan to launch Phase II within the next two months. Also, we will soon launch Royal Green Homes (Faridabad), a plotted development under Deen Dayal Jan Awas Yojna, spread across 11 acres.
