Gurugram-based Experion Developers Pvt Ltd is currently on a land acquisition spree and prioritizes government-auctioned lands due to their regulatory advantages. While residential and commercial projects are its current focus, the company is open to exploring other possibilities also, including hospitality and student housing, in the future.

“Our emphasis on land acquisitions is guided by strategic objectives that align with our unwavering dedication to delivering exceptional real estate projects. These acquired lands will serve as the foundation for the upcoming luxury residential developments, underscoring a pivotal achievement for our company and reaffirming our strong commitment to India’s burgeoning real estate sector and its growth trajectory,” says B K Malagi, COO, Experion Developers.

In an exclusive interview with Sanjeev Sinha, Mr Malagi talks about the key trends prevailing in the residential real estate market and shares his business outlook. Excerpts:

How do you determine the feasibility and potential profitability of a land acquisition?

Determining the feasibility and potential profitability of a land acquisition is a meticulous process at Experion Developers Pvt Ltd. Our approach involves comprehensive analysis and collaboration not only to understand the present context but also predict future trends too. Here’s how we assess land acquisition:

  1. Location Analysis: Location plays a crucial role. We evaluate factors such as accessibility, proximity to key infrastructure, and the potential for future development in the area.
  2. Zoning and Regulations: We thoroughly review local regulations, zoning plans, and any potential obstructions. Compliance with these regulations is essential for successful land development.
  3. Site Conditions: Detailed site analysis is conducted to assess its suitability for the intended project. This includes factors like topography, soil quality, and potential challenges.
  4. Market Research: Our teams conduct in-depth market research to understand the demand and competition in the area. We consider current market trends and preferences.
  5. Cost of Construction: Accurate cost estimation is essential. We evaluate construction costs, including any additional expenses due to site conditions or regulatory requirements.
  6. Risk Assessment: We assess risks associated with the acquisition, including regulatory changes or unforeseen challenges. Risk mitigation strategies are developed.
  7. Financial Modeling: Detailed financial models are created, factoring in costs, financing, interest rates, and projected returns.
  8. Negotiation: In the case of private land deals, negotiations with landowners take place. We aim for a mutually beneficial agreement while considering our profitability targets.
  9. Due Diligence: Extensive due diligence is conducted to validate all aspects of the acquisition, including technical and legal aspects.
  10. Profitability Projections: Based on the above factors, we project potential profitability. This includes revenue forecasts, taking into account unit sizes and sales projections.

In a nutshell, our process combines thorough analysis, market insights, and careful planning to ensure that each land acquisition aligns with our commitment to quality, compliance, and profitability.

Also Read: Building Your Dream Home: Key financial considerations for constructing a house in India

Are there any specific regions or areas where you are particularly interested in acquiring land for future development?

Our focus for land acquisition is primarily driven by strategic considerations that align with our commitment to delivering quality real estate projects. Currently, we have established a strong presence in the National Capital Region (NCR), including areas like Noida and Gurgaon. These regions have been favorable due to their growth potential, demand for luxury properties, and our track record of delivering on-time and quality projects.

While our core focus remains in Delhi NCR, we continuously explore opportunities in other metro cities. However, any expansion into new regions would involve thorough research and assessment of market conditions, demand dynamics, and regulatory environments.

Our primary goal is to ensure that any land acquisition aligns with our vision of delivering exceptional real estate projects and meets the evolving needs and preferences of our customers. Therefore, while we may consider opportunities in other areas, our expansion plans are executed with a long-term perspective, ensuring that we maintain our reputation as a quality developer.

Could you tell us about any upcoming large-scale projects you have in mind and their estimated timelines?

We are committed to delivering real estate projects that meet the highest standards of quality and customer satisfaction. While we have successfully executed several significant projects in the past, we always have our eyes on the future.

Currently speaking, we have several large-scale projects in the pipeline. These projects, although not in terms of physical size, are substantial investments with built-up areas exceeding a million square feet each. We anticipate a revenue potential of 6,000-6,500 crore from these projects.

Also, we are in the planning and development phase for several exciting projects at present, including luxury and uber-luxury residential complexes in prime locations in Noida and Gurgaon. These projects are set to offer top-notch amenities and a modern lifestyle experience to our valued customers.

While we are not at liberty to disclose specific project details or estimated timelines at this moment, we assure you that our teams are working diligently to bring these projects to fruition. Our commitment to quality, transparency, and on-time delivery remains unwavering, and we will provide updates on these projects as they progress.

We take great pride in our track record of delivering projects that exceed expectations, and we are excited to continue this tradition with our upcoming ventures.

How do you see the Delhi NCR market growth?

The Delhi National Capital Region (NCR) has been a dynamic real estate market with significant growth potential. We are optimistic about the future of this region. Here are some key factors contributing to our positive outlook:

  1. Expanding Urbanization: The NCR continues to attract a growing population due to its economic opportunities, leading to increased demand for housing and commercial spaces.
  2. Infrastructure Development: Ongoing and upcoming infrastructure projects, including metro extensions, expressways, and improved connectivity, enhance the region’s accessibility and attractiveness for real estate investment. With the government objective to achieve USD 5-trillion economy, major reliance is on infrastructure development, specially in the regions of Delhi-NCR.
  3. Commercial Growth: Delhi NCR remains a hub for various industries and corporate offices. The presence of numerous IT parks, business districts, and commercial centers further drives the demand for residential and commercial real estate.
  4. Government Initiatives: Government initiatives such as “Housing for All” and “Smart Cities” are positively impacting the real estate sector by promoting affordable housing and urban development.
  5. Quality of Life: NCR offers a high quality of life with access to educational institutions, healthcare facilities, entertainment options, and a cosmopolitan lifestyle.
  6. Sustained Demand: The region’s diversified real estate market caters to various segments, including affordable housing, luxury properties, and commercial spaces, ensuring sustained demand.

Considering these factors and our commitment to delivering top-quality projects, we believe that the Delhi-NCR market will continue to grow and offer promising opportunities for both developers and investors in the coming years. We remain dedicated to contributing to this growth through our customer-centric real estate developments.

What are the key trends prevailing in the residential real estate market?

In the ever-evolving residential real estate market, several key trends have emerged, reflecting the changing preferences and needs of homebuyers. Here are some of the notable trends we have observed:

  1. Larger Unit Sizes: Post-COVID-19, there is a noticeable shift towards larger unit sizes. Homebuyers are looking for spacious homes that provide more room for family members to work and study from home comfortably.
  2. Emphasis on Outdoor Spaces: The pandemic has highlighted the importance of outdoor spaces. Properties with balconies, terraces, gardens, or access to open green spaces are in high demand.
  3. Amenities and Community Living: Homebuyers are increasingly valuing amenities within residential complexes, such as gyms, swimming pools, co-working spaces, and community areas. The desire for a well-rounded living experience is a key trend.
  4. Mixed-Use Developments: Integrated developments that combine residential, commercial, and retail spaces are becoming popular. These developments offer convenience and a holistic living experience.
  5. Sustainable and Eco-Friendly Homes: There is a growing awareness of environmental issues, leading to an increased interest in eco-friendly and energy-efficient homes.
  6. Flexible Floor Plans: Buyers are looking for flexibility in floor plans that can accommodate changing needs. Multi-purpose rooms and adaptable spaces are gaining popularity.
  7. Tech-Enabled Homes: Smart homes with advanced technology for security, energy management, and convenience are on the rise.
  8. Location Preferences: Proximity to essential services, workplaces, and good connectivity to transportation hubs remain important factors influencing homebuyers’ decisions.

These trends underscore the importance of developers to stay innovative and responsive to changing market dynamics. We are committed to providing homes that meet these evolving demands, offering sustainable, well-designed, and community-oriented living spaces to our customers.

What are your future development plans?

Our future development plans are geared towards expanding our product portfolio in Delhi-NCR and nearby areas. We have a strong focus on luxury and uber-luxury projects in premium locations in Noida and Gurgaon. We prioritize government-auctioned lands due to their regulatory advantages. While residential and commercial projects are our current focus, we are open to exploring other possibilities, including hospitality and student housing, in the future. Our commitment to quality and compliance guides our growth strategy, and we are optimistic about the Delhi-NCR market’s continued growth.