Residential real estate poised for strong bounce back: Mohit Malhotra of Godrej Properties

Residential real estate poised for strong bounce back: Mohit Malhotra of Godrej Properties

The residential real estate sector is poised for a strong comeback as affordability is at the best, says Mohit Malhotra, Managing Director & Chief Executive Officer, Godrej Properties. Speaking to ET Now, he said, “once the economy comes back we will see a very sharp recovery in the residential real estate sector. because affordability is at all-time high. Repo rate of 4.4% is the lowest ever in the history of last many years. Players like us who are the leaders in the industry, would definitely benefit from both demand revival and also consolidation, which is going on in the industry.”

Malhotra further said that repo rate, which at present is 4.40%, is even lower than the rate prevailing during the 2008 financial crisis, which will lead to demand revival in the residential real estate sector. He said there may be a disruption in the short term (6-9 months) but it will soon bounce back.

However, speaking on the commercial real estate sector, the CEO of Godrej Properties said, the current downturn in the sector may take some players out of the business. “This (Covid outbreak) will lead to lot more consolidation in the industry. You will see emergence of very large real estate players in the country,” he added.

KEY HIGHLIGHTS

  • Real estate sector has been under pressure for a very long time
  • Work has started in few cities, things still at a standstill in Maharashtra
  • Current situation will accelerate the consolidation in the sector

According to Malhotra, the top 10 players in the real estate sector in India have a market share of 11% but in China, top 10 players have a share of 30%. Very soon we are going to see a similar situation in India as well, he said.

On restarting of business post the lockdown, he said Godrej Properties‘ office in Bengaluru is open and construction has started there. Even in Gurugram, construction has started on few sites and few are going to open soon, he added.

Source

img

Lindo Advisors and Services LLP

LINDO ADVISORS AND SERVICES is one of the countries leading service companies specialized in the brokerage of premium residential property & commercial real estate. Based in over 8 locations in total, LINDO ADVISORS offers both private and institutional clients a professionally tailored range of services. Consultancy, sales and leasing form the core competences of the staff of more than 15 people. The Company is currently operating in over 8 cities. Intensive training schemes in its in-house real estate training center and the high level of quality assurance governing its systematically structured service provision are key factors that account for the Company’s success.

Related posts

An Unbelievable 55,000 Residential Units Sold between January to June During Covid-19: Anarock

In spite of the existing crisis created by the dangerous pandemic, 57,940 residential units got...

Continue reading
by Lindo Advisors and Services LLP

4 New Innovations that have become New Normal for our Real Estate Industry

This white paper talks about the effect of technology led experimentation on the real estate...

Continue reading
by Lindo Advisors and Services LLP

A Major Rise in Housing Price Index (HPI) by 3.9% in Q4 of 2019-20

The quarterly House Price Index (HPI) for the fourth quarter of 2019-20 was just released by...

Continue reading
by Lindo Advisors and Services LLP

Join The Discussion