What is the vision and inspiration behind the formation of Parsvnath Developers Limited? How eventful has your journey been in establishing benchmarks in real estate business? Would you please elaborate on the group's important milestone achievement?
Our experience spanning over 3 decades has made us to understand the market nuances and needs. Accordingly we have multiple station projects in multiple verticals which cater to all pockets thereby offering solutions to all sections of the society and the overall growing needs of the population.
We have taken to set standards in real estate by being a first to announce the importance of Earth Quake resistance structure offering penalities on delay in delivering of the project apart from making the pricing escalation free. We are proud to have wide portfolio of international products that cater to different market segment both residential, commercial, educational, and entertainment.
Our projects are known to provide value for money and offer investment returns. We value customer relationship and take customer satisfaction to higher level through contemporary benchmark in the construction and marketing practices like all good corporates. We have keen eyes on ESR activities while focussing on strategic growth.
How has the Group been able to sustain its public image delivering assured end-result to the satisfaction of its clients in the present competitive scenario?
We have always believed in doing our jobs and are committed to build a better world. We have been able to deliver on our promises by adhering to the below commitments:
- To cater to the real needs of a growing population
- To set standards and improve our environment
- Offer a wide portfolio of international quality products that cater to different markets and segments
- To deliver value for money and excellent investment returns
- Take customer relationships and customer satisfaction to new levels
- To focus on strategic growth
- Evolve contemporary benchmarks in construction and marketing practices.
The company has offered possession in 56 projects which include township/ group housing/office building/mall cum multiplexes/row housing projects. The development of the township encompassed building world class infrastructure with provision of environment friendly development of tree lines roads, landscape parks, and water harvesting facilities. Care has been taken that the township holds within campus. Plots are earmarked for facilities like education, entertainment, and shopping. The company has been consistent in developing highend projects along with affordable range of projects.
A word about your involvement in IT Park and SEZ projects.
The company has interest in 2 IT parks; one is in Chennai, and other is on Gurgaon road. We are also interested in SEZ projects.
Different states have different formulas for arriving at floor space index (FSI). Do you think that a rational approach in fixing FSI ratio is called for to sort out housing requirement, enabling more built area both for the developer as well the house owner?
Every state hold typical needs and has different mindset of the population apart from the facilities of geographical area for the development.
In case the land available for development is less, the need to go vertical becomes prominent. If the availability of cheap land exists, then the horizontal expansion would be preferred expansion. Therefore the FSI rules cannot be standardized but shall vary from state to state and city to city.
The Reserve Bank of India (RBI) in the beginning of 2014 has increased the indicative policy rate (repo) by 25 basis points to 8 per cent to tame inflation. How do you find this move and its effect on the real estate market?
It was a highly disappointing step by RBI to raise repo rate. That encouraged banks to increase their lending rates which were already beyond reach. We saw that the increase in rates dissuaded home buyers from going ahead with projects and there was a wait and watch period. Developers too suffered because of liquidity crunch.
However, since then, there are certain positive factors that have developed in the Indian economy such as a substantial drop in current account deficit, downward trend in global crude pricing, and tapering down of inflation. Now all eyes are on first budget by Modi Government where we expect some favourable reforms for real estate sector like infrastructure statue to affordable housing, widening of FDI norms, automatic route for ECBs, Interest Rate Subvention to home buyers and Priority Sector status to construction Loan for Affordable Housing Project, defining maximum stamp duty on affordable housing etc.
According to a report, 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?
Tier-II and tier-III cities hold the key to the growth of the country. Bhiwadi, Manesar, Dharuhera, Ujjain, Indore, Sonepat, Karnal, Panipat and other cities are now witnessing the next round of realty development. The govenement also is aiding the development of Tier II-III cities through improving connectivity and creating facilities for holistic living. The aim is to reduce the pressure of major metros while creating multiple satellites that are self sustainable.
Parsvnath Group has a wide portfolio with its presence in 44 cities and 15 states. Is the group planning to ramp up more widespread presence?
Our focus is now on execution and delivery of our on-going projects. In the last 6 months we have delivered approximately 18 lac sq. ft. With our efforts of cost control and effective project management we expect to do better in the coming quarter.
How do you see the growth of real estate industry in particular and your business in the next two-three years with the formation of the new stable government? Do you really think the new Government would take strong steps for the progress of the sector?
We have already seen the market cheering the formation of a stable government at the centre. We expect faster decision making and economic reforms. We are optimistic about the reform and changes this government will bring in to boost the economy. For the real estate in particular, we firmly believe that the sector will be given industry status this time which will ease all fund inflow. Apart from coining investment friendly rules and policies such as raising of income tax deduction, correcting wealth tax regulation to come. In par with that of share market, reestablishing income tax rebate on projects existing in earlier section and other encouraging tax, holidays and concessions.
