Page 25 - September 2015 Digital Construction Opportunities

REALTY BIZ Affordable booster For the unstable real estate business the emphasis on affordable homes has emerged as the new saviour for firms looking to bring health to their orderbooks. A drastic fall in sales and piling up of unsold an appealing growth fgure. Te region’s Omaxe Ltd, a company which started properties has led to growing concern in the most prime realty hub – Gurgaon – saw its journey as a construction contracting Indian realty market While the housing a considerable supply in the affordable company in 2001, is one such major that segment as a whole is going through a segment. About 91 per cent of the units believes in afordable housing as a potential painful business-cycle, the impact on launched at Gurgaon during the frst half business opportunity in the unstable real India’s northern real estate market was on of current fscal belonged to the afordable estate scenario. Te Group has taken its a much larger scale. A recent Knight Frank housing bracket and amounted to the tune of expertise to tier II and III cities with a long report has indicated a terrible fall in Delhi’s `2.5 million. Of the newly launched units, term vision to provide housing and modern residential market with property sales about 43 per cent were under the Haryana lifestyle to people of those cities, who till dropping down to 50 per cent as against the Government’s Afordable Housing Policy then believed in traditional mode of housing same period a year ago. A considerable fall 2013. Most of the newly launched units and had little exposure of community was also witnessed in the number of projects were priced at less than `25 lakh. As per the living and private group housing societies. launched in the region during the frst half report, the region also had no new launches Over the years, Omaxe has carved a niche of 2015. While the number of new launches in the premium category – priced above `3 for itself in the real estate sector through in Delhi’s residential market dropped by 68 crore. Furthermore, the properties priced a diverse range of projects catering to the per cent in H1 of FY15, the NCR market above `3 crore also saw a drastic demand afordable segment. Te strategic market saw only 11,360 housing units launched drop from 918 units in H1 of FT13 to 215 positioning and ability to deliver quality during the same period. According to the units in H1 of FY15. According to industry projects has today enabled Omaxe to consultancy firm, the figure indicates a experts, the overall market sentiment is for achieve a 40 per cent rise in its Q1 FY15-16 major setback in the North Indian housing attractive pricing, creative marketing and is performance. Consolidated net proft for space, especially in the NCR market as the favourable for afordable housing units. quarter ended June 30, 2015, stood at 16.83 region last year had 35,500 new units during crore. During the frst quarter of fnancial the same period. As per the analysts, the MARKET EXPLORERS year 2015-16, Omaxe booked 1.54 million sq stunted sales have led to price stagnation Aiming to overcome the market hiccups and f of space valued at `658 crore and delivered and pegs sales at 15,000 units in the coming to identify new growth areas, the country’s 1.25 million sq f at various locations. Te two quarters. top notch realty players, specially targeting company credits its forte and expertise in Despite the fnancial crunch and stagnated the North Indian markets have widened afordable housing as a vital success element growth, a segment that has registered positive their focus on afordable housing projects. in expanding its footprint not just in metros signs of growth is affordable housing. Omaxe, Unitech, Ansal API, Amrapali but also in non-metro cities. Te Group is Even with absorption rates standing at an Group, Supertech, Parsvnath etc are some currently undertaking 39 real estate projects, all-time low in the North Indian market, of the main players following the market of which 13 are in group housing, 16 are of the segment could successfully register trend. townships and 10 commercial complexes. u SEPTEMBER 2015|construction opportunities 25