By: Rohtas Goel, CMD, Omaxe
Track2Realty Exclusive: With realty being a micro market driven business and land a state subject, dealing with the government machinery has a different challenge in many of these cities.
There has been a unanimous demand from all players about certain amendments in the way real estate sector, despite being the second largest employment generator, is dealt with.
For speedy execution, a single window clearance mechanism has to be devised. The sector must be given an industry status for easy financing. The real estate and land acquisition bill though deals with some bottlenecks, but an exhaustive look by the government into the sector is necessary.
However, it would be a fallacy to believe that developers are venturing into tier II and III cities for better returns or metro market is getting too competitive for survival. Every project may not be able to fetch better returns if quality and delivery as promised is not given.
Those who understood the potential and opportunity these cities provided entered this segment. It was challenge to change mindsets, but we have been successful.
Moreover, the brand consciousness of a realty company comes from the user experience and hence we never felt scaling down to venture into these cities. In fact, we took a conscious decision to enter these cities. A company must have a varied skill set and expertise to deal with different types of housing that they provide.
Initially many people believed that real estate is a micro market business and foray into other cities may backfire. However, for us it was not something to manage, rather we consciously decided as we were determined. Consistent market research, interaction with people, understanding their needs and surveys and research helped us in understanding the demand pattern of these cities. This helped us in creating projects that was up for grabs and this pattern has been successful wherever we have our presence.
Another apprehension has been that real estate in general depends on the overall economic condition of the given market, and many small towns not having vibrant economic centres.
This perception has been borne out of the fact that we always tend to undermine the potential of these cities. Today, from realty to manufacturing companies to top corporate houses, retail etc have begun to open their units in these cities and the economic prosperity is very visible. Any demand for commercial or residential has a spill over effect on the other and this is what has happened in these cities.
We are still in an evolutionary process and there is no specific set that can be counted to as having more potential than the other in terms of the demand that exists in the given market.
Different cities have different income groups, accessibility factors etc that determine demand. However, it is just about the first move – and the rest and success follows. Those who made the first move have been duly rewarded, whether the entry to tier II and III cities have been by chance or by choice.
