[kkstarratings]The boom in real estate in NCR has lured corporate houses to foray into residential real estate projects in Gurgaon, Noida and Faridabad in the past 5-6 years. Tata Housing, Mahindra Lifespaces and Godrej properties say that their arrival has brought transparency and professionalism in a sector which is notorious for being unprofessional.
There are complaints against almost every builder today because of their attitude of considering buyers as return-hungry investors who only care about the latest price of their property and not the performance of the builder. The complaints are mainly related to possession of property, extra demand for money, non-availability of community buildings, buildings not matching with the approved plan, maintenance-related issues, occupation certificates , completion certificate, bad construction quality, norms ignored by builders and no action by concern officials and non availability of electric infrastructure among other issues.
After real estate major, DLF, was slapped a multi-crore penalty by the Competition Commission of India (CCI) in March this year, almost 200 complaints were filed with the CCI, according to media reports.
Conglomerates venturing into real estate have brought some amount of transparency and corporate governance in the sector. “Established players like Tatas, Godrej, Mahindra’s have made buyers confident of making a safe choice by bringing certain standards to the table, creating new benchmarks or establish new norms,” said Santhosh Kumar, CEO of operations, Jones Lang LaSalle, Gurgaon.
It has created branding and pushed the importance of delivery schedules. In short, it has really helped clean the industry which was otherwise really messy. A highly labour-intensive industry marred with age old practices has seen wave of reforms and innovations post entry of some big business houses. Giving reasons as to why these big businesses have flocked to NCR, he said, “NCR being a corporate hub is witnessing buoyant demand levels for all segments of real estate.”
“Here per capita income levels are high and also land availability for development at reasonable price is a possibility. In addition to that, major infrastructure initiatives such as Metro, Dwarka Expressway and proximity as well connectivity to Delhi are all working well for this region in particular thereby prompting all businesses to not miss the available opportunities,” he added.
Tata Housing, which launched its first project Raisina Residency, Gurgaon in 2008, followed by Primanti in Gurgaon in 2011, said that NCR is one of the most important and growing real estate markets in India. “The entry of Corporates has raised the bar in terms of transparency, professionalism and delivery of houses in the sector,” said Vikram Kharvi, reputation management consultant, Tata Housing Development Company .
“Starting from covered area to quality of material & furnishings to community facilities, corporates have had a far superior track record. While saying that, a lot of traditional organically grown developers are also playing catch up and have had a remarkable record of transparency. So, the entry of Corporates has stimulated better business practices and will give the customer options,” he said.
TRANSPARENCY IN REAL ESTATE MARKET
Talking about how its presence has taken the standard of realty in NCR high, Anita Arjundas, MD & CEO, Mahindra Lifespace, said “Being a part of the larger Mahindra group has helped us bring in values of customer centricity, quality focus, transparency, sustainability and professionalism in a sector that was not strongly associated with these characteristics.”
“Our foray into NCR was driven by the need to be present in important cities and regions that were seeing or likely to see high levels of urbanisation,” she said. Started its journey in NCR in 2000, Mahindra Lifespaces has handed over Central Park – 1 and Chloris in Faridabad and is working on Aura, located near the Dwarka Expressway in sector 110-A.
Anil Rawal, a property consultant in NCR, said that property today is like FMCG (fast moving consumer goods) and therefore the absorption of residential projects is very high in NCR. “Brands like Tata, Mahindra and Godrej enjoy goodwill among people and they are cashing in on that. Moreover, as conglomerates they have corporate culture which helps them in functioning smoothly in every vertical. Not to forget, they have brought in transparency and professionalism and raised the standard of the industry.”
Godrej Properties, which has two projects, Godrej Frontier in Sector 80 and Godrej Summit in Sector 104, Gurgaon, said that NCR is a critical market for any realtor. “We believe we have carried forward our brand name and reputation for quality to the real estate market in our locations of operation. Transparency and efficiency in operations have helped us in developing long-term relationships with our customers as well as investors in the real estate market, business partners, contractors and suppliers,” said Ajay Pawar, general manager (Media & PR), Godrej Properties Limited.
“Coming from a non real estate background has actually helped us. Most of the team members of Tata Housing come from various business sectors and together they have contributed to bring together the best practices prevalent in other organized businesses,” said Vikram of Tata Housing.
Alok Kumar Upadhayay
Real Estate Professional