QUES: Looking at the present real estate scenario, to what extent has it been hit by the slowdown?

ANS: When the economy grows at the rate of 7-8% you cannot call it a slowdown. The so-called slowdown has to be looked as a mere pause or a ‘consolidation phase’. From an individual perspective, some of the players may not be doing as good as they were doing earlier and some may be impacted more than the others. This slowdown again is a good sign as it gives us an opportunity to reflect back and see what we should be doing in addressing the requirements of the industry and that of the customers.

QUES: How has the current real estate scenario affected the market?

ANS: It’s been just 4-5 years since the real estate industry has started getting organized in our country and all the hype around it. The effect of global turmoil is inevitable but as India is a demand based market unlike Australia, US, Germany or Dubai which is a market that is supply-based, we will be able to sustain these temporary jolts. Just like, in a tough examination, brilliant students have better chances of scoring, in real life scenario, when situations get tough, well-established and prominent developers sail through.

QUES: What is the future of real estate industry in India?

ANS: At a time when markets abroad have peaked and are facing issues like sub-prime mortgage, the future of Indian real estate seems very promising. Initially, as the industry was getting organized and there was no set benchmark, over-pricing was prevalent in the market but slowly a correction is taking place. It will take at least two decades for infrastructural developments to reach every nook of the country and so until then real estate growth is bound to continue.

QUES: With RBI clampdown on real estate funding, choppy stock market, tougher PE funding norms, what impact you foresee on the future growth of real estate?

ANS: These kinds of stipulations or conditions or curbs are in a way good for the industry. One becomes more competitive, more responsible and is able to make the right usage of resources, capital and land efficiently. Therefore, it is good for the industry in the long run. Otherwise also with investors taking a backseat, it’s a healthy sign for the industry.