Home Buyers will definitely gain from the Housing Initiatives

By Nimisha Gupta Editor-in-Chief

Shri Ashok Mohnani, CMD of EKTA WORLD pioneer in the Real Estate Sector talks about why his brand is one of the most looked up amongst the home buyers, effects of new reforms, the impact of GST on Housing sector .

Q1 What makes Ekta World the true leader in the real estate sector?

In the real estate industry for over three decades, Ekta World’s unique propositions are quality assurance, commitment, innovation and luxury and above all peace of mind. EKTA World balances simplicity and opulence across all its spaces by creating an environment that appeals to the senses, imagination and lifestyle of our customers across diverse segments. Additionally at EKTA world, we give equal importance to our corporate social responsibilities and aim to create better living conditions for the lesser-privileged sections of society.

Q2. Tell us something about your Corporate Social Responsibility – CSR activities?

Since its inception we have had multiple CSR initiatives. We believe in giving back to the society. Over the years in our own way we have associated with leading organizations that helped the people to fulfil their passion to work towards the betterment of the society. We have a dedicated CSR division that caters to these initiatives under the brand name SAMRAKSHA.  We also actively work with Shraddha Foundation, an institution to care for road side destitute and schizophrenics,

Currently, our company has collaborated with Happy Foundation to conduct Maharashtra Para-sports. This includes 8 Individual Sports such as Table Tennis, Chess, Carrom, Karate, Swimming, Badminton, Squash, and Lawn Tennis. Ekta world has rendered its support to recreational activities as well for the under privileged. The group is aware that there are many rural pockets in the country that doesn’t have access to the basic necessities in life. Hence we have adopted 6 villages and personally ensured the provision of basic necessities in these villages through Lions Club International, further more we have developed sanitation facilities for municipal school in satellite regions. The group is sure that in the coming years it will be able to invest in more heart-warming developments across platforms. The team at EKTA World believes that true development of a country is indicated by the quality of living in its innermost reaches.

Q3. Lot of debate happened over GST and RERA and its impact on real estate. What is your take on it?

The major decision by the government to implement GST had disrupted the industry. This has hit the sales and new launches and hampered growth temporarily. On the other hand, this initiative has boosted consumers’ confidence and has bought transparency in the industry. The year 2017 will make its space in the books of history as one of the difficult years for the residential segment in real estate sector, as developers are assessing market sentiment and aligning themselves in the RERA-era. Cut in interest rate by banks have set mood for the buyers and it has positively contributed towards the growth of the sector. Through RERA, the developers will require to bring more transparency as well as accountability in their system, and do a lot to increase consumer confidence. Also, the Goods and service tax as well as the Benami transactions (Prohibition) amendment act 2016, will have a major impact on, real estate.The statement of Union Finance Minister Arun Jaitley clearly indicates that the government is keen on bringing real estate sector under the ambit of GST that is one “final tax”. The way the GST is structured now, there are seven rates i.e. 0%, 0.25%, 3%, 5%, 12%, 18%, and 28% applicable to various goods, a simplification would be widely welcome.

Q4. Affordable Housing is the new rage in real estate now, how Ekta World defines it?

Affordable housing initiative somewhere got prominence with government giving infra status to affordable housing. It encouraged the developers by safeguarding easier access to institutional credit and by relieving the reducing developers’ cost of borrowing for affordable projects.  Affordably-priced units have seen higher absorption in most cities. More than one crore houses are to be built in rural India by 2019 under Pradhan Mantri Awas Yojana Housing for all by 2022, with the backing to the consumer of cheaper sources of finance. Apart from that the external credit financing and Re-financing of housing loans by National housing banks, would help boost the growth of the sector. Prospective home buyers have been given the eligible criteria for affordable housing, where the carpet area has been hiked from 90 square meters to 120 square meters. There have been appx 26000 units that have been launched, of which appx 40% have been in Mumbai under this category, clearly indicating a surge in demand for affordable homes.

Q5. How has demonetization affected the Real Estate Industry?

The reason of the entire exercise was to clean up the system, and try and rid the parallel economy. After stagnating sales temporarily, the next 2 quarters of the year saw some upward movement on the back of many positive factors. These include growth in the economy, discounts and attractive deals by developers, and schemes such as AMRUT, Smart Cities, and ‘Housing for All by 2022’. Reduction in the home loan rates to the prevailing 8.35%, industry status to affordable housing. After note ban and with the coming of RERA, consumer benefits have peaked and fence-sitters are seen making their home-buying decisions. Most of the prominent real estate markets saw a gradual decline in the unsold inventories that had been choking up liquidity. Rationalization of prices took place. Overall, demonetization had scarce impact on credible developers and did bring a level field for all, furthermore, with the coming of RERA, consumer benefits have peaked and fence sitters are seen making their home buying decisions.”

Q6. Do you think the government flagship initiative “Housing for All’’ will benefit to the developers?

 The initiative gives a mammoth opportunity to the developers as the houses largely come under affordable category have been given the infrastructure status. They should encourage the PPP model to achieve this vision however there are some challenges that remain for developers. Apart from thin profit margins, delays in approvals affect affordability.

Q7. The implications of back to back reforms and act have made any impact on your on-going projects?

We have always been transparent and law-abiding. The reforms like GST and RERA are welcome and will help the industry in the long run. Temporary inconvenience is worthwhile if it can give long-term benefit to all stakeholders of the realty sector. We have registered all our projects with RERA and have done so seamlessly.

Q8. How far do you think the country has come today as an infrastructure developed nation?

India has definitely seen a huge jump when it comes to infrastructural development, with a rise in India’s ranking in ease of doing business. Also, FDIs have risen and are expected to rise further promising better townships, housing, built-up infrastructure and construction development projects. With metro rails coming up in key capital cities across the country including Mumbai, Bangalore and Delhi, it is a step in the right direction. Also, high-speed bullet trains proposed between Mumbai-Ahmedabad are promising of modern hi-tech infrastructure in India.