BHUBANESWAR: Real estate and mining have been the sunrise sectors for the state -over the past half-a-decade. But the 'mining is in shambles now for reasons known to all. Quite dependent on the mining sector, the real sector has definitely faced issues due to mining slowdown. Nevertheless, the performance was still going good till a few months ago. But owing to some supply-demand mismatch the sector is going through a rough phase, if not turbulent times. Orissa Post does a reality check by talking to both industry players and associations to find out the state of ,real estate sector in the state.
DS TRIPATHY, Jt secy, CREDAI-National
The real estate market in the state is facing twin problems of stagnancy in the high-end home market and insufficient supply in the economic segment. The demand for high-end homes has grown between 20 and 30 per cent over the past few years, but the supply here has grown almost fivefold. The abundance conditions have stalled growth here. On the other hand, homes within a range of Rs 10 lakh to Rs 25 lakh are not available in sufficient numbers. And this category caters to almost 80-85 per cent of the buyers (the economic segment). For the sector to get going it is time that the players must focus on houses in the economic segment. Developers should come up with single bedroom apartments and studio apartments at affordable prices to make the sector retain its growth rate.
MOHAMMED MOQUIM, managing director Metro Builders (Orissa) Pvt. Ltd.
Presence of some unscrupulous developers has led to false valuation of properties and unreal I state's realty sector. It has resulted in falling number of buyers. Nevertheless, it is a temporary phase and the state's realty market will get over it soon. Though the high-end segment is facing some issues due to oversupply conditions, demand is still good in the lower segment But then, high price of land is deterring to get into this low-margin segment.
RAIEEB KUMAR DASH, head marketing services, Tata Housing Development Company Ltd
Market sentiment is quite low across the country and Orissa is no different. However, the good part in the state is that end-users here were upbeat during the past two months because of the festival season. Tata Housing did a good business during this period, more so in its luxury apartment project `Ariana' where prices range between Rs25 lakh to Rsl crore. The demand for one BHK and studio apartments segment, where cost of the apartments range between Rs10-20 lakh, is certainly high here. But developing such low cost homes in Bhubaneswar is quite difficult considering the high cost of land and increasing prices of construction materials. Such projects can only be developed active support of government.
PUNYABRATA MOHANTY, head corporate communication, Assotech Limited
National slowdown in economy coupled with the turmoil in the state's mining sector has affected the real estate sector negatively in Orissa. In addition, oversupply of homes in the HIG category (above Rs 35 lakh),has resulted in falling prices. Investors too are a little hesitant to invest in the sector at present. The demand is the still high in economic category. But owing to rising cost and shrinking margins such are not very feasible for the realtors.
BINAY KRISHNA DAS, president CREDAI-Orissa Chapter
Market here is stagnant for the HIG segment (properties with a price tag of above Rs40 lakh). But as far as affordable house (below Rs20 lakh) are concern, number of buyers are increasing every day. A number of CREDAI member are coming up with affordable projects the growing demand. However, escalation of project cost due to arbitrary fixation of land prices by the government and imposition of undue registration charges of developer have emerged as a critical issue in this segment.