The Realty Plus Conclave 2010, an initiative of the exchange4media Group, was held in Delhi on April 23. The day-long conference witnessed panel discussions on topics such as new business opportunities, regulation in business, investment strategies and future of integrated townships. The conference culminated with a glittering awards night. Dr Khater Massaad, CEO, RAK, Investment Authority, was the chief guest at the Conclave.
First session, which was themed – ‘Paradigm Shift in Housing’, was moderated by Anuj Puri, Chairman & Country Head, JLLM. Puri got the ball rolling and asked the panelist to explore the definition of ‘luxury’ and ‘affordable’ housing?
Ananta Raghuvanshi, Director, DLF Homes Developers Ltd. believed that decent place with good infrastructure in the range of 10 lakhs can be called affordable house. Apart form this, value housing is a big market which comes under the range of Rs25 lakh to 30 lakh while premium housing can be called in the range of Rs60 lakh to70 lakh, while, of course luxury go beyond Rs1 crore.
According to the PSN Rao, Professor and Head, Department of Housing, SPA, definition of affordable houses is debatable. But he believed that whatever is affordable to the majority of the people of the country can be called ‘affordable homes’. “House, which Indian middle class can buy in the range of Rs10 lakh to 20 lakh comes under affordable home category,” Rao stated.
While, on the other hand Sunil Jindal, CEO, SVP Group stated that ‘Livable is Affordable’. Giving the buyers point of view V Sunil Kumar, Director, Asset Homes said, “Affordable varies according to each buyers.”
In India, overall 60-70 per cent market is residential housing market and recovery after financial crisis and sixth pay commission by the government has fuelled the demand of the houses in the country subsequent to this prices have started going up. “Increasing prices can not make the demand lesser. Price escalation will happen but first we need to deliver the commitment we did with our consumers,” said Raghuvanshi of DLF Homes.
Anil Kumar Sharma, CMD, Amrapali commented, “There are certain target audiences which we have left behind which comes under limit of buying a home in the range of Rs20 lakh to Rs30 lakh. And we need to take that seriously. Other problem which is land prices can go down if government supports the industry.”
While, V. Chandrasekar, Professor, Indian School of Business lament on the issue of land price and said that I don’t see it can be solved easily.
Speaking on the support industry got from the government Prof Rao noted that sixth pay commission has fuelled the demand of houses in the market in a big way. “When Yashwant Sinha was finance minister, he gave lots of concession to the industry in three consecutive budgets and it fuelled the revolution in the industry,” added Rao.
Anil Kumar Sharma, CMD, Amrapali believed that government should provide some ‘single window’ clearance system or fast track clearance for the developers which can help the industry in a big way.