HERALD: Any new up-coming projects?
NIRESH NAIK: We have under construction residential projects in Margao, Panjim, Porvorim, Sangolda, Colva as well as some ready possession projects in places like Raia, Benaulim, Uttorda and Caranzalem. Typically, the size of our apartments (2-3 BHK) is in the range of 100 to 160 sqm and the size of villas (3-4 BHK) is in the range of 150 to 250 sqm.
HERALD: What is the USP of your projects?
NN: Functional designs for residential spaces, up-market specifications, quality of construction, ethical dealings, timely delivery of projects, competitive rates etc are some of our USPs.
HERALD: What changes have you made to take the company further?
NN: We have introduced a lot of latest construction equipment in the execution of projects in order to improve quality of construction as well as reduce our dependency on labour. Also we have implemented ERP system to streamline and increase efficiency of our day-to-day working.
HERALD: How has the market been in the last 2-3 years?
NN: There is definitely a slowdown in the real estate sector for last 2-3 yrs. Closure of mining is one of the reason which has caused this slowdown as investment in real estate from people employed in mining has stopped or is reduced to negligible. Also slowdown globally and in India compounded by the fact that home loan rates are high and taxation by local government is also high, has affected Goan real estate sector.
HERALD: Has there been a correction in prices?
NN: No. there cannot be any correction in the selling price due to high land prices, high taxation and high construction material cost. Construction material rates are today at an all time high mainly due to environmental issues which is causing suppliers to increase their rates.
HERALD: What are the problems plaguing the industry?
NN: There are a lot of problems presently faced by real estate industry. High home loan rates, high stamp duty, high infrastructure tax, high conversion rates, lack of support from government agencies in providing basic infrastructure, non-finalisation of Regional plan 2021 etc. Also, though infrastructure tax has gone up substantially in last few years, no infrastructure is provided for the project by the government agencies and the same has to be done by the developer.
HERALD: How have you overcome them?
NN: We are forced to overcome the above problems by increasing our selling price.
HERALD: Are there any implications for end user as a result of these problems?
NN: Of course. As mentioned above we have to pass on all the increase in statutory duties etc to the end user. So ultimately it is the end user who bears the cost of high stamp duty charges or high infrastructure tax.
HERALD: What can the government do to improve the situation for the industry?
NN: Government can definitely help real estate industry in a lot of ways. We do not expect any subsidies from the government. But simplification of approval etc process, providing basic infrastructure like electricity, water supply, roads for the projects, finalisation of Regional Plan 2021, rationalisation of taxes etc are some of the demands which if met by the govt will help this industry to come out of this rut.
