Page 42 - Construction & Architecture Update JAN-FEB 2018
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DEVELOPER Ravi Menon, SOBHA Ltd.
We are confident that the RAVI MENON
Chairman, SOBHA Ltd.
sector will see significant
growth on a sustainable basis real estate sector? How do you see the
What are thoughts on the year 2017 for
sector shaping up in 2018?
and help drive the Indian The year 2017 has been a historic year for the Indian real
estate sector. The Government’s concerted efforts in driving the
economy” economy saw many game-changing reforms. The Union Budget
gave a huge impetus to the affordable housing segment with
infrastructure status. As a result, affordable housing has become
the next big wave for Indian realty sector and is expected to
revive the housing demand in India.
Equally landmark was the implementation of Real Estate
(Regulation and Development) Act, 2016 (RERA) that not only
protects the homebuyers’ interest but is also expected to
enhance credibility of the sector with focus on transparency
and accountability. Similarly, the progressive reform of Goods
and Services Tax (GST) replaced the multiple taxation regime
with a uniform and simple tax structure, promoting ease of
doing business. Some of the other initiatives introduced by
the Government include Credit Linked Subsidy Scheme (CLSS)
under PMAY; extension of income tax benefits to apartments of
up to 60 square metre carpet area; amendments in Real Estate
Investment Trusts (REITs).
As we move forward to 2018, we expect the benefits of
these reforms and policies to be visible in the years to come.
The changes brought by these will create a level-playing field
for organised players like SOBHA and help consolidate the
sector by weeding out non-serious players reluctant to
transform themselves. Additionally, there will be a greater
focus on faster execution of projects to meet the
delivery timelines.
Slowly but steadily, the market sentiments
are improving. We are confident that
the sector will see significant growth on
a sustainable basis and help drive the
Indian economy.
Throw some light on SOBHA’s
recent performance?
We have been consistent with our
performance. SOBHA’s operational
performance for the third quarter
FY18 has been impressive. The
Company has achieved new sales
volume of 933, 365 square feet,
valued at INR 7,509 million with
an average realisation of INR 8,045
per square feet, which is highest
ever quarterly sales performance
of the Company in terms of value
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