Page 46 - Construction & Architecture Update JAN-FEB 2018

DEVELOPER Dr Niranjan Hiranandani, Hiranandani Communities

Indian RE on Radical Shift Gear!

(Journey of 2017 to the outlook 2018)

investor in multi-dimensional projects with relaxed FDI policy.
Hence, remarkable initiatives announced by the centre has
surely revived positive sentiment index.
To boost the mission of “Housing for All” by 2022, government
has geared up in the multiple directions to seek manifold effect
on growth trajectory. To speed up the pace of development,
various initiatives were announced by the govt like Infrastructure
status to affordable housing, Pradhan Mantri Awas Yojana for
Credit linked Subvention subsidy, bank recapitalisation, lower
home loan interest rate, carpet area SOP’s, Atal Mission for
Rejuvenation and Urban Transformation (AMRUT), and Swachh
Bharat Mission (Urban) under the urban habitat model, smart
city mission, PPP model where Affordable Housing emerged as
the rising star of Indian real estate in 2017.
Another major sector responsible for propelling India’s overall
development and act as a key driver for the Indian economy is
“Infrastructure, Infrastructure and Infrastructure” which enjoys
intense focus from the centre. Government has initiated several
Dr Niranjan Hiranandani is CMD, Hiranandani remarkable policies to transform Transport model like Bharatmala
Communities. He is also President, National Real Estate for national highway extension, expansion of rail connectivity
Development Council (NATION), which works under the through intercity metro linkage and bullet trains, exploring
aegis of Ministry of Housing & Urban Poverty Alleviation, inland waterways through coastal roads, RO-Ro services,
Government of India. wharfs and breakwater, Trans Harbour Bridge, development of
multi-modal industrial corridor, improving road connectivity
,building warehousing and logistic parks which will accelerate
and bring in much required revolution to amplify the country’s
year 2017 will be truly flagged off as the “Year of economic growth.
System Reboot in Indian RE” in wake of multiple Commercial real estate outperformed across 2017. To give our
events throughout the year. ‘Real Estate’ known own example, we delivered 4 lakh sq. ft. of office space as India’s
to be a prominent sector in the progression story first International Finance service Centre at GIFT City, Gujarat;
A of Indian economy, as it is a major contributor for also towards end-2017, we completed TCS Olympus Centre, 2
employment generation and GDP growth. Numerous regulatory million sq. ft of ‘built to suit’ office space in Hiranandani Estate,
regimes commenced with hard hit Demonetisation, Benami Thane. In Panvel project, we have arguably the single largest
Property Act coupled with power pack RERA and GST ACT commercial spaces cluster in the MMR being developed with
and Insolvency Bankruptcy code were initiated by the central some towers ready for possession.
govt. Implementation of these regulatory acts did directly hit On a more comprehensive note, these policies and reforms
the real estate market across the country leading to sluggish are intended to improve governance, eradicate fraudulence
sale, liquidity crunch, funding issues, approvals nightmare and and corruption, streamline taxation structure and boost
confusion among the consumers. But, I believe that all this development of major sectors like real estate. With core sectors
transitional slowdown in demand which we witness as an after leading towards development, there are also many bottlenecks
math of series of reforms had nothing to do with the huge pent- and challenges persisting in the progression of these Acts. Finally
up demand for housing in India under the ambitious goal of to sum up, India is definitely fastest growing real estate market
‘Housing for All –by 2022’. in the world. Real-estate industry in India is addressing the
As dust of these radical transformations has settled, impact demand for built-up space, from a multiple asset class, such as
has worn off gradually and markets have begun to revive under offices, housing units, retail, warehousing and logistics parks, in
the new regulatory framework. Indian Real estate market to me which housing sector is undergoing a significant growth. Indian
looks very bullish for the next 5 years from now, especially larger Housing Sector Outlook 2018 looks promising moreover, with
cities will go up as real estate prices have already bottomed out rising purchasing power, continuously rising population, growing
and stabilised. Fence sitters who had postponed their buying aspirations, increasing nuclear families, rapid urbanization, easy
decision expecting further fall have started coming back to the home loans and lowest interest rate triggers. Thus, the housing
market opting out for best available deals in the market. The sector in India is anticipated to register a strong growth in the
transparency and credibility brought in by these regulations has coming years.
not only attracted the domestic buyers but largely the global A year of 2017 truly referred as a year of Tsunami’s due

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