“When Demonization happened that was first shocked which real-estate industry got. But there were organized developer who did not depend on Demonization,” Sengupta
DailyNewsIndia exclusively interacted with Mr. Ketan Sengupta, current Chief Executive Officer of Bengal Peerless Housing Development Company. He took the first step in his career by creating his own venture, Eikon Creators Pvt. Ltd., in 1993. He joined the company as one of the Directors. They started this company from scratch and made it grow to a position of respectability. During the interaction, Ketan Sengupta has revealed the impact, changes, losses, and future of real estate during and after the pandemic.
Q. During this pandemic impact fall on the Real-estate sector?
A. I would say Real-Estate in India badly affected even before the COVID, so we are going through a very tough time in the last three years in the pre-COVID era as it started off from demonetization. When real estate was just about to recover than this pandemic enters it was very badly heated we start with but I would say like the government takes the situation pretty well and right kind of measures taken by government like bringing down the interest rates and brought down stamp duties which have given a boost to the real estate market to recover again. When things got better like unlocking the facilities the sales level has increase during the third quarter. In 2021 last quarter between January to March, the sell level and volume have increased. Currently, the real estate is bouncing back despite the fact that the economy was doing well main reason was the right kind of decision adopted by the both state and Central government.
Q. You talked about the price correction and Interest rate; did you encounter some delays in payment of house loans or projects as last year people lost their jobs?
A. I won’t say we haven’t face the problems totally but these are a small fraction of what people are failed to pay the installment of their home loans because of losing jobs or salary cut things happened. Despite that, I think there has been a recovery in the real estate sector that we have seen especially in the residential sector. Another important factor that is responsible is a change in a mindset seen during the pandemic and after the pandemic, people are getting adjusted from work from the home concept so, what they are releasing they need a bigger place to work peacefully, though particularly in the residential sector is an upsurge.
Q. How you would like to elaborate on the real estate’s affected during Demonization and now in a pandemic as the situation is same but scenario was different?
A. Yes, I would say When Demonization happened that was first shocked which real-estate industry got. But there were organized developers who did not depend on Demonization. It has some effects as I said during the pre-COVID era, the market was sluggish. After that, the right kind of steps have been taken like bringing down the home loan rates and also rationalization of GST slabs which initially created a lot of confusion but then GST slabs were affordable segments and also positive steps which help to bounce back. But people recover that because most of the people were opting for housing loans and though Demonization does not need to play role in that. As per my view pandemic has fallen both positive and negative impact on the residential segments because people who live in rent they though due to the low interest rate it is the right time to buy a home.
Q. Real estate sales have increased during the pandemic or it increases after overcoming Demonization?
A. I would say there has been growth if you compare year on year basis like in 2019 December or 2021 when the pandemic was not there nearly January to March in this last quarter of 2021 if you compare the sells, the sale of this particular quarter is more than that quarter than last year. Even if you compare the pre-pandemic era the growth has increased in residential segments.
Q. How you are dealing with the current situation and What message you will give to youth who are in this business.
A. I would say this is a temporary phenomenon like what is going on right now, real-estate has a very bright future for India because the population is so large and the young generation is there more than the older generation and income level is going up and rapid urbanization is happing all these things will lead to real-estate in growing demands.
News by Priti