The slump in the real estate sector for past decade and the resultant delay in projects had created distrust in the market. Now, with this law being passed the trust of the customers and investors can be brought back to the market
The real estate market has changed in the last couple of years; the marketing too has changed with the introduction of technology. What have not changed are the basics of marketing and the value of an experienced hand to manage an overall set-up. It is this reason that makes Rajesh Gauri an incredible resource to an organization. In a career spanning over two decades, he has extensive experience in Business Development, Sales & Marketing, and Profit Center Operations with an overall business perspective in Consumer Durable, Real Estate Sector, and Mobile Phone Services, Building Material industry.
As Vice President at Homestead India, country’s one of the few niche real estate developers, he strongly believes in creating visionary and strategic leadership for his team and organization. It has helped him deliver the desired goals. With strong insights and experience across industries, he has been proficient in developing systems to enhance operational and administrative effectiveness. Team RealtyMyths thank him for this opportunity to understand his perspective on the recent developments that took the sector in stride. Below are the excerpts of the interview:
As the new Real Estate Regulatory Law gets implemented from this month, what changes do you think will it bring on the immediate basis?
The new Real Estate Regulatory Law is a commendable initiative by the government. Transparency in the realty sector will attract a good amount of FDI as it happened in countries like UK & Australia. The slump in the sector for past decade and the resultant delay in projects had created distrust in the market. Now, with this law being passed the trust of the customers and investors can be brought back to the market. Also, the state authorities need to consult stakeholders before implementing the law and ensure single window clearance to overcome multiple clearance and approval hurdles in the development of certain projects.
Do you think provisions like setting aside 70% of project fund to Escrow A/C are practically possible, given the fact that it will hamper the fund flow?
This provision constrains the developer to put 70% of the project funds in a staunch bank account. This will ensure that the developers don’t divert the funds of one project to the another/new. This practice will help to increase the efficiency of timely delivery & allotment to the particular customer’s investment with certain projects.
I believe that the Escrow account rule that assures the investment, will result in more investment as RERA act works as an assurance to the amount invested.
Your brand has been endorsed by many international celebrities. Do you think celebrity brand endorsement influences buying decision? Also, should celebrities be held responsible in case of any delay?
Yes, celebrity endorsement does influence the buying decision because they are the people who are well known for their achievements and personal traits. With such people showing their faith in the product it helps in building an image of that product. Delay of the project has nothing to do with celebrities as it is a resultant of the complex legalities/formalities that hurdle in the completion of the project.
Please share details about your ongoing projects and projects in the pipeline?
One of our ongoing projects is the Michael Schumacher World Tower which is inspired by the traits of world famous icon Michael Schumacher. The project is designed to offer an unmediated experience of the celebrated lifestyle and witness exalt in one’s achievements.
How is commercial realty market doing? How will REITs impact the market?
The commercial realty market is under correction phase and is posting hope of improvement with the approval of Real Estate Regulatory Act & REIT. However, the commercial Realty is expected to attract efficient and effective investment opportunities due to their transparency and liquidity that has an advantage owing to the fact that there is a breeze of trust associated with the sector now. This will result in income-oriented investments from various investors. Implementation of the act should be carried out with the framing of an efficient regulatory system for maximum functionality.