KIRTH GEORGE
PANJIM: In an interview with the Herald, Leo Arcanjo Pereira, Managing Director, L&L Builders Pvt Ltd spoke about the real estate industry, problems faced by it and his company. Excerpts of the interview.
HERALD: Since when have you been in the realty business? How did you get into it?
LEO ARCANJO PEREIRA: I was an engineer in the merchant navy and had invested in small plots of land. So when I quit sailing, in 1999, I decided to get into construction with the help of a partner. In 2000, I decided to go solo and since then I have completed 14 projects.
HERALD: Where are your projects located? Do you have any ongoing ones?
LAP: I have two projects which are currently on. One is located in Fatorda which has 122 residential and 14 commercial units. The other project, located at Navelim, is spread over 3 acres and occupies only 51 per cent of the land area. It has 28 apartments, 16 twin bungalows and 10 independent bungalows.
The completed projects are spread across Navelim, Margao, Varca, Benaulim, Colva and Betalbatim.
HERALD: Your projects are all in South Goa. How was your experience been?
LAP: Business was very good until this trend about opposing any and every project started a few years back. While there may be a few legitimate concerns, not all builders or projects are bad. It is pertinent to note that this industry provides a lot of employment, generates revenue for the government and most importantly provides for Goa’s increasing housing requirement.
HERALD: What is your customer profile?
LAP: Most of the buyers in my projects are Goans. In Margao and Navelim it is almost 100 per cent because of a lot of local migration from villages towards Margao. On the coastal belt the percentage of Goan buyers drops to about 70 per cent.
HERALD: How has the market been? Has there been a correction? What do you expect in the near future?
LAP: The market has been a bit slow for the last 3 years. The inquiries have reduced drastically. But I see the situation improving from December onwards as a lot of NRIs are expected to come down for the exposition. The prices have not really come down in South Goa. This could be because there has never been a steep escalation in prices in South Goa, so the risk of a correction is very low.
HERALD: What are the problems faced by players in this industry?
LAP: Well, the government collects a substantial amount in infrastructure tax for facilities like water, power etc. Industry players have long given up on the idea that we are entitled to things like transformers etc for our projects. So we install our own and we are okay with paying for the additional costs. But the process to get one of these transformers is too time consuming and cumbersome. Also the procedures for mutation and conversion are problem areas. For us, builders, it is okay, because it is out business and we have the manpower and resources to follow these processes that take a minimum of 5 to 6 months. But imagine the plight of the common man trying to build his house or an NRI who comes here only for a few months. Why must he or for that matter anybody not have a more streamlined and time bound service delivery?
The other problems are off course the shortage of raw materials like sand and ever increasing labour costs. But these can be tackled with substituting material and increasing mechanisation.
HERALD: What would you like the government to do for the industry?
LAP: Apart from the obvious streamlining of systems it is extremely important that the government take the sewage issue very seriously. It is a time bomb waiting to explode and unlike garbage which is visible on the surface, sewage destroys our ground water without showing external signs. While the sewage line is a good initiative, the government has to make it compulsory for all households to connect to the system. Leaving it optional, especially for high-density city areas like Margao, will not serve the purpose. A soak pit is not a solution, it is only fuelling ground water contamination.
HERALD: What is your USP?
LAP: I think deep down I truly don’t want to cheat anybody and consumers see this in my work. I always tell my sons to follow an honest path and any business will be a success.
