The housing market, a significant growth driver in the real estate sector, is poised for a remarkable year ahead. Residential sales have already witnessed a substantial increase following the Covid-19 period. Nationally, price increments of approximately 7.5% are expected, with varying rates across different cities, says Aman Nagar, JMD, Paras Buildtech.
In an exclusive interview with Sanjeev Sinha, Mr Nagar talks about the growth prospects of the real estate sector and shares his business outlook. Excerpts:
What are your expectations from real estate sector in the upcoming fiscal year?
In the forthcoming fiscal year, the Indian real estate sector is likely to sustain its upward trajectory and meet the expectations of investors. The presence of commercial real estate funds in the market has attracted individual investors seeking consistent passive income from secure real estate investments. The overall Indian economy is exhibiting positive indications, with a projected growth rate of 8-9%, heightened job creation, and a recovery from the recent downturn in the stock market. These factors will contribute to an upsurge in housing demand as more individuals enter the market, which is vital for the robustness of the real estate economy.
Moreover, the government’s ambitious infrastructure projects, including highways, airports, and metros, along with initiatives such as ‘Housing for All’ and the Pradhan Mantri Awas Yojana will propel growth in the real estate sector. The commercial real estate segment is expected to yield favourable returns as major IT companies transition back to in-person operations and retailers gradually resume operations at physical stores.
The housing market, a significant growth driver in the real estate sector, is poised for a remarkable year ahead. Residential sales have already witnessed a substantial increase following the Covid-19 period. Nationally, price increments of approximately 7.5% are expected, with varying rates across different cities. With several encouraging economic indicators, the upcoming fiscal year holds promising prospects for the real estate sector in India.
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What potential benefits and opportunities does the inauguration of the Dwarka Expressway offer for property investors and the real estate sector in the region?
The inauguration of the Dwarka Expressway will bring a significant transformation to the residential and commercial real estate markets in the region, with an expected 30–40% rise in property prices. The inauguration is expected to transform the commercial real estate sector in the region by unlocking the potential of the swiftly growing locale. The improved infrastructure will drive economic growth, resulting in a significant boost for the real estate sector. This upcoming event is a lucrative opportunity for property investors looking to maximize their returns, as the expressway’s opening is expected to unlock the potential of the swiftly growing locale.
What are the prospects for commercial real estate development along the Dwarka Expressway?
Dwarka Expressway’s remarkable YoY growth highlights the investment potential the region holds. With an increasing number of people choosing to settle in these regions, the demand for commercial spaces, including offices, retail centres, and entertainment venues, is set to skyrocket. Dwarka Expressway is poised to emerge as a vibrant hub for business and commerce, offering a myriad of opportunities for investors and entrepreneurs to capitalize on.’
Can you provide an overview of the business highlights for Paras Buildtech during the fiscal 2022–23?
The fiscal year 2022-23 has been a highly productive period for our real estate firm, marked by the introduction of two remarkable projects: Paras Avenue, a retail highstreet located in Noida Sector 129, and Paras Arcade 114 situated at Sector 114 Dwarka Expressway. The launch of these projects has garnered strong support from our stakeholders and enabled us to achieve our revenue targets within six months. Furthermore, we have made substantial headway in reducing our existing inventory, successfully selling a significant portion of it. We anticipate that the remaining inventory will be sold in the upcoming months.
We are currently focusing on several projects and expansion plans soon. In addition to these accomplishments, our dedicated team is actively engaged in developing various residential and commercial projects. These projects are strategically planned for both metropolitan areas and satellite cities. We believe in catering to diverse markets and providing quality real estate solutions across different locations. We are fortunate to have the unwavering support of our stakeholders and investors, which has significantly contributed to our growth and success. Their trust and confidence in our vision have been instrumental in fuelling our expansion plans.
What has been the market response for your Paras Avenue project?
Paras Avenue is one-of-its-kind high street retail project situated on the Noida-Greater Noida Expressway. Spanning across 2 acres of land, it offers a distinctive and immersive shopping experience along with a delectable food court. Paras Avenue has garnered considerable recognition in the market and has been well-received by customers and investors alike. The project achieved remarkable financial success, generating an astounding revenue of Rs 750 crore within just 6 months of its launch. The project offers various retail configurations, spacious frontages, and flexible spaces, making it an ideal location to maximize the commercial potential of products and services. The double-height store spaces ensure maximum visibility for brands, enabling them to command higher rental rates and attract a larger customer base. Additionally, the subdivision of the area allows each establishment within Paras Avenue to stand out and captivate the attention of shoppers effectively.
What are the distinctive features that differentiate Paras Arcade 114 from other office and shop complexes in the vicinity, and what are your expectations regarding its performance in the near future? Also, what are the projections for Paras Buildtech for 2023-24?
Paras Arcade 114 is the latest venture by Paras Buildtech, marking our inaugural foray into the SCO (Shop-cum-Office) project realm. Situated strategically in sector 114 along the Dwarka Expressway, this development is characterized by its prime location. Spanning an expansive 3.25 acres, the project offers a generous total saleable area of 4597 sqm. The assortment of commercial SCO plots within Paras Arcade encompasses various sizes, ranging from 104 to 143 square feet. Distinguished by its exceptional attributes and facilities, the project boasts shaded trellises, well-paved roads, charming flea market kiosks, an event plaza, a stage adorned with an LED screen, and much more. These commercial spaces are meticulously designed to accommodate the contemporary business demands of today’s dynamic world. Paras Arcade 114 presents a remarkable investment opportunity, promising substantial returns for generations to come, thanks to its strategic location and an array of amenities. With the launch of Paras Arcade, the legacy of Paras Buildtech is anticipated to persist and flourish. Garnering considerable attention from customers, our project stands at the nexus of Delhi and Gurugram, further augmenting its appeal. Our objective is to achieve 100% inventory sales for Paras Arcade within the upcoming months.
So far asParas Buildtech is concerned, the fiscal year 2022-2023 was characterized by positive performance, marked by the successful launch and leasing of Paras Avenue. Looking ahead to the fiscal year 2023-2024, the company expects to maintain this positive momentum with the upcoming launch of Paras Arcade 114, projecting a 100% leasing rate and a staggering revenue of 108 crores. Furthermore, Paras Buildtech’s team has been diligently working on new residential and commercial projects in both metropolitan and satellite cities, showcasing their commitment to expanding their portfolio. The company expresses confidence in its growth trajectory, as evidenced by the unwavering support received from stakeholders and investors. These factors collectively indicate a promising outlook for Paras Buildtech, as it strives to capitalize on market opportunities and achieve further success in the real estate industry.
