PANJIM: The Essen Group has been involved in infrastructure projects for a while and is now moving into the construction of residential complexes. Vishant Naik, a member of the next generation in the family is taking the group forward. He spoke to the Herald about plans for the group.
Herald: What are the projects the Essen group is involved in these days?
Vishant Naik: We are presently involved in three projects, Essen Whispering Willows at airport road, Essen Horizon at Dabolim and Essen Tranquility at Chicalim. We intend to start another project in Panjim in two months. Right now we are focusing only on residential projects. We were involved in a lot of infrastructure projects outside Goa and we feel with regards to commercial projects in the state there is a lot of supply. We will focus on creating homes and we feel this segment needs to be catered.
Herald: What is the state of the industry these days?
VN: Business has been weak for a year or so now. Earlier we would entertain ten to twelve parties every month but now if two or three parties walk in we will be lucky. This can be attributed to the poor sentiment in the market. People have the money but they are not willing to spend it. Earlier there were people in the market who would purchase two or three flats at a time due to their connection to the mining industry. Our customers are those who stay in them. We have a lot of Goans who buy our flats.
Herald: The cost of a flat in Goa has increased dramatically making it difficult for people to afford them, is there any light at the end of the tunnel, will there be a correction?
VN: Well the cost of construction of a flat per meter is approximately Rs 18,000-19,000. Add another Rs 20,000 per sq mtr as cost of the land, it is approximately Rs 40,000 per sq mtr. The builder needs to make a profit so adds another Rs 10,000 or 11,000, so one can only imagine the cost. This problem is faced by builders who are purchasing land now is that they have to pay huge sums per sq mtr making them unable to give discounts to stay competitive in the market. There are two or three builders who purchased land years ago and provide discounts. All these factors result in flats being available.
Herald: What are the trends emerging in the Goan market?
VN: Contemporary designs are a hit over here. Customers demand all the modern amenities like club houses, pools, wide open lawns to relax. There is a demand because people want second or third homes. You will also be surprised at the number of Goans who purchase flats. If mining starts soon demand will skyrocket and the market will be booming again. I suppose one has to hang in there.
Herald: How will this market be in five years?
VN: Remember we are a young population, 57% of our population is under 40 and they will need homes and that holds true for Goa too. This is the market to be in.
