Karan Properties Riding on Good Reputation

Karan Chandrashekhar, MD, Karan Properties Development Pvt. Ltd., in an interview with Maria R, discusses his impressive lineage and the modern practices he has brought into the business.

From practicing interior designing to becoming a real estate developer, how has your journey been so far and what fascinates you about the world of real estate?
I have always been fascinated with the world of real estate and construction. My roots date back to my grandfather who was in this field in the early 50's and was also accredited with beautifying Bangalore. My passion for aesthetically appealing buildings was born from my father's passion. My father was also into construction and interiors and growing up, I helped him with the interior designing of offices. I would say, my father is the reason I'm here today. He always encouraged me to venture out and take my own decisions, and in fact, one of the biggest things I learnt from him is, taking quick decisions. My father gained a lot of respect from everyone working around him because he was confident of taking decision and standing by it till it yielded the right results. I've carried this trait with me into my business as well.

I was very sure that I would branch out and build a brand to undertake real estate developments. In 2011, two years after I returned from Australia, I started my first project. It was completed in 2014 and was entirely sold out. Since then, we have been able to add projects to our portfolio and we will continue to do the same in the years to come.

You made inroads into real estate (in 2011) when the industry had started facing the heat of slowdown. How did you insulate Karan Properties from the market downturn?
In all honesty, we were not able to generate substantial sales on commencement of our project, and it wasn't because of the market or the slowdown as you mentioned, but because of the fact that we were new. Customers were apprehensive of investing because they were unsure of completion and with limited body of work to show, it was a challenge. However, what we did instead was concentrated on the construction of the building and we believed in our product. So, I was certain that a quality product which was priced right would always find a buyer - it was just a matter of time.

Your very first development 'The Mark Residences' received an overwhelming response and was completely sold out. What is the USP and core strength of Karan Properties?
I was 22 when I undertook The Mark Residences. It was a building of 80 apartments and was a huge learning experience for me. I've always believed that practical knowledge and experience trumps book knowledge, and through this project, I got to learn a lot about construction. One of the unique features of this project was that I undertook everything in-house.

The USP of the firm is my philosophy of "Build it and they will come." To put briefly, it describes the firm's approach of undertaking construction with the strong belief that aesthetically appealing buildings, good quality finishes, premium specifications, legal and timely developments will always draw buyers. It is something which I learnt from my first project and which will continue to be at the core of this company's philosophy.

I believe that to create a good reputation and brand, the company must be able to deliver the quality products it promises. Customers are more inclined to invest in projects where the products are more tangible and not just on paper.

Tell us about your other important projects in hand.
At present, we have four projects under development – three in Bangalore and one in Udupi. In Bangalore, we have Madrid Residences, Monaco Residences, and Berlin Residences. Madrid Residences consists of eight premium apartments between Indiranagar and Koramangala. Monaco Residences consists of seven luxury apartments in upscale 3rd block Koramangala. Berlin Residences is a mixed-use development in Indiranagar. In Udupi, we have Milan Residences, which consists of 32 apartments – a mix of studio, 1-bed and 2-bed units.

Karan Properties hails from a rich heritage of builders who have been involved in the construction industry since 1950s. How do you view the extent of real estate business in India, its expected rate of growth, and prospects in view of emerging opportunities?
I am personally very confident with regard to the growth of this industry in the years to come, and truly believe that with all the impetus that's being put into developing our cities and country, there will be a lot of demand for housing and workplaces in the years to come as our standards of living are changing.

In terms of buyers themselves, they have become a lot more aware and educated and undertake a lot more research before making their decisions. And with the availability of finance options and low interest rates, the dream to buy a home has become very achievable even for young working couples.

Inspite of the negative press which surrounds this industry, you should understand that this is the industry which gives people the security of their home, the economy may fluctuate and there will be the slowdowns but the demand for housing will always eventually be there.

Tier-II and tier-III cities are being reckoned as the growth engines of the future. How do you see your business growth in these cities?
There definitely is a growing demand for quality housing in tier-II cities. Currently, we have a mid-scale development in Udupi District called Milan Residences, which has 32 apartments. Most people from these small towns are in search of opportunities and many have done well for themselves, there are many buyers locally and internationally who look to invest in their hometowns. As a developer, these tier-II towns offer good opportunities to secure land parcels at lower costs and offer the opportunity to monetize the same with the growing demand.

"Customers are more inclined to invest in projects where the products are more tangible and not just on paper."

I have a strong connect with the South Canara region and see my company continuing to add developments in and around the area. I believe that if you build a good product, people will buy, and that's the philosophy that I'm bringing to these locations as well. I personally believe that with the growth of these towns, the local people will defer re-settlement anytime in the future.

How do you look at PM's 'Housing for all by 2022' and Smart Cities Initiatives?
Currently, there is a requirement of nearly 20 million houses for the urban poor and slum-dwellers. It's an amazing initiative by the Indian government to bridge this gap and I hope for it to be fulfilled. The minimum unit size for the economically weaker section housing is 30 square meters and the plan to deliver such projects is envisioned. I hope that everyone has access to quality housing and amenities as it's a basic human necessity.

How do you keep your workforce up-to-date with best construction practices and mechanization for quality and speedy construction?
I believe today everyone is a lot more aware of what is happening in the world and implementing change is the only way to survive, with the availability and introduction of various new materials, tools, equipment etc. It is very important to adapt to the changing environment and to implement the same and the only way to do it is to have it practiced. In our company, we use Whatsapp efficiently where all project managers are directly connected with the office and with me. We have been able to reduce delays and increase the speed of construction drastically.