Southern realty market witnessing rapid growth: Vineet Surana

Hyderabad:The real estate market in the South is rapidly evolving into a pivotal property market within the country. We are witnessing substantial project launches and robust sales accompanied by innovative features and offerings that meet international quality standards. Vineet Surana, Managing Partner at Rishabha Constructions sheds light on the convergence of burgeoning business opportunities, job prospects, and an influx of educated individuals, signaling a new era in the real estate industry in the South. Here are some excerpts from the interview:

The residential sector has rebounded following a prolonged post-pandemic slowdown. Do you anticipate this growth to be sustained?

India's consistent GDP growth has driven substantial expansion in real estate. Despite a brief pandemic-induced slowdown, recent years have seen a resurgence in property development, thanks to sustained economic growth. This economic success has led to increased income levels, which are expected to persist creating a growing demand for high-quality residential and commercial properties.

Additionally, India's demographic advantage favors the market, with a youthful population eager to invest in quality homes. Government policies, like the proposed interest rate subvention scheme for the housing sector, are anticipated to significantly boost the real estate industry, potentially doubling its contribution to the country's GDP from the current 7% to around 15% in the next couple of decades.

How do you see the festive sales with a stable repo rate since the last two terms?

The festive season always brings excitement to Indian real estate, especially in terms of sales. This year’s estimates following Navratri/Dussehra celebrations have been promising. The unchanged repo rate of 6.5% maintained by the central bank over the past two quarters has spurred homebuyers to pursue their dream homes, supported by improved home loan offerings, stimulating the residential real estate market.

How do you foresee the growth in the Southern market, and what are the emerging residential markets in the South?

South India has emerged as a frontrunner in embracing sustainable living practices. From eco-friendly architectural designs to water conservation initiatives, the region’s real estate industry is adopting measures for sustainable living. Emerging technologies are transforming the landscape, benefitting property owners and tenants.

One of the most significant emerging micro markets in South India is that of Koramangala in Bangalore. This market has a vibrant startup culture and a number of high-quality residential and commercial property and the number of options is going up with increasing connectivity and infrastructural development. Another significant micro market is that of Kukatpally in Hyderabad where an increased supply of properties can be expected with expanding business opportunities. Another important micro market which holds good promise is that of Velachery in Chennai. It is close to IT corridors like DLF IT Park and Tidel Park and has many new property options coming up.

The office space is yet to recover fully with delayed return to work and the global economic crisis. Where do you think it is headed?

The current state of the commercial property market is exciting, with ample options at optimal prices. Real estate developers sprang into action following the pandemic, resulting in a significant influx of new supply. In the fiscal year 2022-23, Hyderabad witnessed the addition of approximately 14.9 million square feet of new office space, constituting about 31% of the total supply in India's top 7 metro cities. Notably, office space completions in Hyderabad for the financial year 2022-23 surpassed the previous fiscal by 27%.

This surge in new supply aligns with the strategies of many companies that are now mandating back-to-office work for their employees. Vacant office spaces are rapidly filling up, and rental rates are strengthening as a result. The market is poised for further growth as more companies transition away from remote working and encouraging employees to return to the office.

What kind of growth have you experienced as a company, and what are your plans?

Rishabha Constructions has seen significant achievements, aiming to expand into emerging markets, strategically acquiring and developing properties in high-demand areas. Our strategy involves joint ventures and developments to enhance our presence in the South with a focus on specialized segments like senior living, student housing, leisure resorts and innovative office and retail formats.

Our growth will reflect sustainability, design innovation, and the highest construction standards, ensuring that each project reflects our commitment to excellence and resilience. We are also looking at partnerships with large funds, corporate entities, and high-net-worth individuals, offering an opportunity to diversify investment portfolios through innovative real estate projects. These ventures represent not only financial investments but also contributions to sustainable and community-focused living solutions.