Real Estate Conclave 2023 – The Future is Real

Niranjan Hiranandani School of Management & Real Estate (NHSMRE) Holds Its First Real Estate Conclave

The Niranjan Hiranandani School of Management & Real Estate (NHSMRE) (affiliated to the HSNC University) organized its first edition of Real Estate Conclave titled “The Future is Real” at the prestigious Kishinchand Chellaram College auditorium on 8th September 2023. The function commenced with the Saraswati Vandana and the ceremonial lighting of the lamp by Dr. Niranjan Hiranandani, Provost of HSNC University; Adv. Anil Harish, Partner, DM Harish & Co; Trustee and President of the HSNC University; Dr. Hemlata K. Bagla, Vice Chancellor of HSNC University. In her welcome address, Dr. Hemlata Bagla, Director, NHSMRE, said that this school at HSNC University, Mumbai was conceived with a vision to bridge the gap between real estate’s needs and skills required, its goals and resources. “Since our establishment, we have been passionately committed to instilling the spirit of “envision it, build it” among some of the brightest young minds of this country,” Dr. Bagla said. Giving an overview of the real estate landscape in India, Dr. Hiranandani shared that at the global level, the urban population is expected to rise from the present 50% to 75% of the population by the year 2050 while in India, the urban population is expected to rise from the present 36% to 50% of the population by the year 2050.

The first panel comprised of Adv. Anil Harish, Dr. Nayan Shah, and Shobhit Agarwal moderated by Prof. Sunder Ram Korivi. Adv. Anil Harish reiterated that land is a scarce resource and that there will always be a conflict between man and nature, as exemplified by the Aarey land dispute. The Dharavi land redevelopment presents opportunities as well as challenges and such conflicts and challenges need to be resolved with a balance between development and the environment. As regards the design of the law, he mentioned that the Transfer of Property Act has stood the test of time and that RERA is well-intentioned, but MOFA had problems in design and implementation. Adv. Anil Harish batted for decongesting cities and creating new cities with an emphasis on affordable housing high quality of life for everyone. He also expressed that the Aarey forest land (green lung for the city) should have been retained and preserved. Dr. Nayan Shah stated that though he had no background in real estate, barring the small business his father had initiated, he took an interest in the business, expanded it with passion, and acquired knowledge about the sector along the way. He said that real estate has a future only if reforms are undertaken by policymakers. He mentioned the problem of populism and activism, citing the case of the Birmingham City bankruptcy. Echoing the views of Mr Hiranandani and Adv Anil Harish, Mr Shobhit Agarwal highlighted the need for professionalism in the domestic real estate sector. He indicated that there is scope for redevelopment in the city centers as well as in the evergrowing periphery of the Mumbai Metropolitan Region (MMR). There is also a robust demand for commercial property across MMR, in the form of office spaces, warehousing, and data centers.

India’s GDP is likely to rise from the present $3 trillion to $5 trillion by the year 2030 and the share of the real estate sector is expected to rise from the present 7% to 15% of the enhanced GDP, by 2030, as per NITI Aayog. The sales & marketing function which was dominated by print media and hoardings, has now gone digital. Against this backdrop, he exhorted the students to keep learning and to avail themselves of this excellent opportunity presented by NHSMRE. Developers are now focussing on affordable and mid-range categories to meet the huge demand. He stressed how the real estate sector plays a pivotal role in the country. Setting the flavor for the day, Dr. Hiranandani noted that demand for residential properties has surged due to increased urbanization and rising household income. India is among the top 10 price-appreciating housing markets internationally. The discourse was followed by four thought-provoking panel discussions on topics such as the future of cities, the future of sales & marketing, the future of AI & technology, and the future of design and architecture in the real estate sector. Mr. Shankar Deshpande, Chief, Town & Country Planning Division, MMRDA; Mr. Nayan Shah, CMD, Mayfair Housing; Mr. Shobhit Agarwal, MD & CEO Anarock Capital; Mr. Sanjay Puri, MD Sure Shot Suggestions; Mr. Sumon Das, Marketing Head, Hiranandani Group; Mr. Abhishek Gupta, CEO Index Cap, Mr. Pankaj Kapoor, Founder & MD Liases Foras; Anirudha Khopade, Senior VP, Squareyards; and Mr. Mandviwala Qutub, Principal Architect, Mandivala Qutub & Associates were the experts who participated in the panel discussions. The panel discussions were moderated by Dr. Sundar Ram Korivi and Adv Sanjay Chaturvedi.

The second panel comprised of Mr. Sanjay Puri, Mr Sumon Das, and Prof. Sunder Ram Korivi, moderated by Adv. Sanjay Chaturvedi. Mr. Sanjay Puri reiterated the favorable scope for the sector in India. He said that the students of NHSMRE are fortunate to study in a systematic manner, as against the existing executives and entrepreneurs who are learning on the job. He stated that every deal provides learnings, and encouraged students to consider being channel partners as one of the options in real estate careers. Mr. Sumon Das offered insights on branding as a symbol of quality and trust. Replying to a question on pricing, he said that a brand does play a positive role in determining pricing power, and variations are on account of individual factors such as quality, credibility, and location. As regards core and periphery, the differential prices remain; however, with better transport and infrastructure, the differences diminish but do not get eliminated. He emphasized the significance of having accurate and structured information about real estate properties, which can significantly change the way potential home buyers make informed decisions and streamline the entire home-buying process. By leveraging AI-powered tools to provide accurate, up-to-date, and structured information about real estate properties, buyers can have a comprehensive understanding of a property’s features, pricing, and market value. This empowers them to make informed decisions based on data-driven insights, reducing the risk of making costly mistakes or falling prey to misleading information.

Dr. Korivi highlighted the phenomenon of economist Nicholas Kaldor’s Cobweb Theorem (an economic model), and its applicability to the market for tomatoes as well as housing stock. The model explains why prices may be subjected to periodic fluctuations in certain types of markets. The theorem states that the demand-supply-based price equilibrium is established over a period and not instantaneously. This is because demand is based on immediate need whereas supply is based on prices experienced in the previous production cycle. Hence, the mere knowledge of the ‘Cobweb phenomenon’ may help both buyers and sellers to modify their expectations. The third panel comprised of Mr Abhishek Gupta, Mr Anirudh Khopade, and Mr. Pankaj Kapoor, moderated by Prof. Sunder Ram Korivi. The session commenced with an introduction to the range of prop-tech-related activities by each of these companies. CRE Matrix has a product called Index Tap, that buys data on property registrations and places the same on an online portal. Liases Foras has conducted research on micro markets in 60 cities in India, and their research is used by housing finance institutions all over the country, for decision-making. Squareyards provides price and project-related data on housing and provides follow-up services such as loan tie-ups, closure, interiors etc. Some valuable insights emerged from the panel discussion. Some products and product innovations come from the customers themselves. Innovation is aided if there is a mass of data with different dimensions, and products could evolve from such master data. The USA is far ahead of India in proptech. Data science is the most critical skill and input in the field of proptech.

The fourth panel was an interview by Dr. Sanjay Chaturvedi with Ar. Qutub Mandviwala. The insight gained was that there is enough scope for an understanding between an architect and a developer, for a balance between commercial expediency and quality/design. It was also learned that architects are increasingly conscious and focused on environmental aspects. Mr Shankar Deshpande, who played a pivotal role in the strategic planning and development of Mumbai’s vital areas, including BKC and the Backbay Reclamation scheme, shared some of his experiences from his long and distinguished career with the audience. While Mumbai is the richest city, 50% of its population lives in slums and it is here that there is a humungous opportunity to redevelop and create new affordable housing solutions for everyone. All experts unanimously agreed that both commercial and residential real estate stakeholders have shown optimism towards the sector’s outlook. The industry however requires central and state government support through various regulatory and policy changes that can stimulate the demand among the buyers. Now six years after the adoption of RERA, realtors are accepting how being receptive to transparency and having a willingness to embrace technology can help in furthering the interests of the real estate sector. The conclave also provided a platform for industry leaders to discuss and share their thoughts about what the industry, government, banks, financial institutions, and other stakeholders need to do in order for the industry to become better.

The event which began at 9:30 am in the morning kept the audience captivated till 5.30 pm in the evening. The moderators and panelists interacted with the audience with a freewheeling Q&A session. The conclave also had a fun real estate quiz round to test the knowledge of the students and winners were awarded interesting spot prizes. The well-organized conclave also helped the stakeholders share the focus on sustainable buildings, adoption of new technologies, and bringing in more green technology into operations to reduce carbon footprint. The conclave proved that the realtors are on the same page regarding the need to have projects that are inclusive, affordable and accessible to all sections of society. It was an incredible experience to witness the mingling of youth and experience at the event and reaffirm the faith that experienced players of today have in NHSMRE to mentor and shape future leaders in a dynamic real estate market dictated by young generation buyers. The event was hosted by Mr Hoshaang Gotla. The annual conclave has been conceptualized by NHSMRE to harness the power of the young generation to bring a fresh perspective to the real estate industry.