Ashish R Puravankara

This Is the Ideal Time to Invest in Real Estate, Says Ashish R Puravankara

“The exemplary response we received for Provident Park Square is a testament to the customer’s desire to buy quality homes,” says Ashish R Puravankara, Managing Director of Puravankara Ltd.

He spoke to Nikunj Joshi of RoofandFloor Bureau and shared some insights about Bangalore’s real estate market and the company’s expansion plan.

Here are excerpts from the discussion.

India’s real estate sector is projected to reach USD180 billion by 2020. What are your views on that?

The Indian real estate sector is in a great position today with consumer sentiments gradually seeing an upward trajectory. Several latest reports and trends further attest to this ongoing rising growth curve. These indicators will further reinvigorate developers to focus on the product, pricing, and rethink their business strategies.

In terms of budget segmentation, the demand for affordable housing is likely to increase in 2018 and 2019. Thus, we may see several leading players venturing into this segment.

How is Bangalore real estate market doing currently? Can we expect higher sales velocity this year?

Bangalore’s real estate market is still expanding with several suburban areas now getting to be part of the mainland. For developers, in general, there are several new opportunities available to launch new projects.

There was a brief period of sluggishness in the market due to policy and regulation changes. However, things are now getting back on track.

Here, I would like to share something about our recently launched Provident Park Square project. We sold about 750 units on the first day. The positive response from homebuyers indicates that buyers are looking for projects that perfectly fits their requirements and are priced right.

In the current scenario, what will encourage buyers to take the plunge?

The Real Estate (Regulation and Development) Act has not only instilled confidence among homebuyers but also transformed the real estate market into a more transparent and professional one. This has created a reliable and trustworthy structure, bringing back both buyers and investors.

Additionally, with lower home loan interest rates, coupled with attractive schemes by developers, it is the ideal scenario for buyers to take the plunge.

What are the top three areas you would suggest for end-users in the city?
  • With several infrastructure upgrades on the anvil, Kanakapura Road offers the best value-for-money deal. At present, the average price for an A-grade under-construction residential property is in the sub Rs 5,500 per sq. ft. One can expect returns to the tune of 15-18% compounded annual growth rate (CAGR) in the next five years.

  • Thanisandra-Hennur Road is another promising location due to its seamless connectivity to the airport and central business district. Interestingly, this belt also has the lowest levels of unsold inventory in the city. One can expect prices to rise by 15-20% CAGR in the coming years.
  • The Mysore Road belt is one of the most affordable spaces in the city. The Metro Rail is likely to kick off in the next three to six months, which will further facilitate better connectivity and impact real estate positively.
Is Puravankara looking for greater diversification into other segments of the real estate sector?

Yes, we are planning to expand our commercial portfolio, and at the same time, continue our momentum of growth in the residential sector with a greater focus on affordable housing.

Recently, we forayed into the hospitality segment with the launch of our project Adora De Goa.

Interesting! Tell us more about this project in Goa.

Adora de Goa offers residential homes with world-class amenities, retail spaces with high street coffee shops, restaurants, spa, and boutiques with unmatched hospitality and leisure retail experience.

What are your plans for the current fiscal?

For the current fiscal, we have sketched an ambitious growth plan. With an investment of over Rs 3200 Crores over the next few quarters, the company will develop over 15 million sq. ft of land across Mumbai, Goa, Pune, Bangalore, and Chennai. Of this, 10.3 million sq. ft will be in the affordable segment.

Your advice for RoofandFloor readers.

With the government introducing various policy changes and regulatory support in the real estate sector, this is the right time for one to invest in their dream home.

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