Delays, red-tape increasing costs for home buyers: Karapurkar

In 2009 they bifurcated the business and Citiscape Developers was born. In an interview with the Herald, Deep Karapurkar, CEO, Cityscape Developers spoke about the construction business, its problems and ideas to improve the way the industry functions. Excerpts of  the interview.

HERALD: Why do you restrict your projects to South Goa?

Deep Karapurkar: I have completed about 20 projects. All except one are located in South Goa. Initially I wanted to construct even in North Goa. There were opportunities in Anjuna and other locations, but it did not materialize due to a number of factors including financial and control over operations. More importantly, I realized in the one project that I did construct in Panjim, that I could not give the personal attention to the extent that I would like to.

HERALD: You tend to build more of residential projects. Any reason?

DK: That’s true. I think in all this time I have built only one commercial project. I get a lot of satisfaction when I see happy families staying in my projects.

HERALD: How has the market been in the last couple of years? Has there been a slowdown?

DK: At least in Margao, most of the buyers are end users rather than investors. So the chances for speculation and hype are reduced. Margao is also the educational hub for about 20 villages around the city and hence the demand has been quite steady. The buyers are driven by need.

On the price front also there is no correction and will not happen because land price index is going up. On the contrary, prices have irrationally gone up because of problems in neighbouring villages. Villagers are not allowing projects in their locality; hence the pressure is coming on Margao city. Prices in Margao have gone up 300 per cent in the last five years.

HERALD: Has there been any change in the way business is conducted from the time you started?

DK: Post 2000, a lot of innovation made inroads into the industry. There has been a simultaneous development of malls, multiplexes and housing. People are more aware are also travelling abroad more. Now people want lifestyle, they want to upgrade, they want to be staying in aesthetically designed projects.

HERALD: What are the problems plaguing the industry?

DK: We appreciate other countries for their planned development, but we do not want to follow their rules with regards to town planning, sustainable development. We do not want to know how much development Goa can take. These aspects need to be handed over to technical persons who love Goa, and not to bureaucrats who interpret rules as per convenience of various Planning and Development Authority (PDA) officers or those who can be influenced by politicians.

Another problem is the entry of a lot of unscrupulous elements in this industry. People with no relevant background or education have entered this space only to make money. This is not good for the industry or the end user. This is not a grocery store; if you get cheated today you change and go to another the next day. Housing is usually a once in a lifetime purchase and you cannot afford to get cheated the first time.

HERALD: What can the government do to improve the situation for the industry?

DK: There should be transparency, time-bound approvals and government officials need to be held accountable for delays. Builders too are citizens of this country and hence we too have the right to services and more importantly in a timely fashion. 

Many laws are obsolete and need to done away with. For example, in Margao city, where is the need for a file to go to the Forest Dept. Ultimately, delays also raise the cost of housing for the end buyers.

When I give a file for approval of a project, it is the responsibility of the government to simultaneously start making provision for all the requirements (water, electricity, garbage disposal, sewage connection) of the project so as to be available on completion. This is not happening in Goa.  In Mumbai, it is more streamlined. When I was working in Navi Mumbai on a project, there was absolutely nothing around. But the government had already started the BST bus service before the project could even be completed. 

Goa government perhaps needs to learn and learn quickly.