Jayesh Thakker, President, CREDAI Nashik
Jayesh Thakker, President, CREDAI Nashik says that, with the IT playing an active role in the city, would boost the services sector in the city and demand for commercial spaces would definitely increase to a higher extent. While at the same time, he expressed concern about the lack of clarity on the part of the state government regarding the LIG/MIG housing scheme in the state.
Excerpts of his Interview with Sandeep Pattnaik of Gharabari.com...
1. Nashik is mostly known as the commercial and trade hub in the Western India. The city is set to be in focus from IT and other Industrial houses. Then how it would affect the prices of Commercial Real Estate there?
A. Nashik had long been a city visited by people from all over the country for its heritage and pilgrimage. The previous DP in the late 1993 saw the formation of 2 major MIDC areas in the city which brought in a lot of manufacturing and job opportunities in the city. It saw a lot of migration of professionals and gave better opportunities to the youth of the city. The 4-Lane Mumbai highway is another highlight which makes mumbai just 2 and half hrs away. The Nashik-Pune highway 4-Laning is being done and should be ready soon. We are now looking at a Nashik -Gujrat Highway being made soon. The Sinnar MIDC and the SEZ with power-stations through which the DMIC passes, is another factor contributing to the city's growth. All this clubbed with various international schools and good quality higher education is the perfect mix that a city all set to explode looks for. An international standard Nashik Airport is also ready. Nashik is today known as the “Wine Capital” of the country with over 33 wineries in the district. We have all the drivers that IT industry requires in a city. The IT industry's active participation in the city is also soon expected and that will take the city to a whole new level. Commercial properties for IT spaces are available at various prime locations in the city at an affordable rental. With the IT playing an active role in the city, we anticipate more migration and much more people with quality lifestyle. This would boost the services sector in the city and demand for commercial spaces would definitely increase to a high extent.
2. How is the pricing trend so far in the Residential Realty space in the city?
A. Nashik is one of the most affordable city in terms of Residential Realty spaces. With prices ranging from Rs 2500 to 7000 per sq. feet, there are various options with apartments starting from 10 lacs to 2 crs. We have residential spaces with all exclusive amenities like ipad controlled homes to swimming pool to gymnasium and with construction quality which is at par with Mumbai and Pune at a much affordable prices. Quite a few Townships are also being made in Nashik by some big names ranging in size from 10 acres to 100 acres providing all modern lifestyle features. Nashik is "Nature's Paradise" with an amazing climatic and very scenic surroundings. All people who visit the city fall in Love with the climate.
3. What is the quantum of investments (appx.) in the pipeline and which are the frontline developers willing to commit funds in the Nashik realty space?
A. The quantum of investment in the pipeline should be a few thousand crores by the city developers. This investment maybe in construction projects, land, NA plots and farm houses. The city developers are eager to pump in more capital in the real estate sector according to their own quantum of business and by raising funds through finance companies also. This is because Nashik is the 4th fastest growing city in the country and 16th fastest in the world. Nashik is also looked upon as the “Next Metro city of Maharashtra” due to the rapid growth and development of the city and also because it is part of the Mumbai-Pune-Nashik Golden triangle.
4. How was the response in the four-day real estate exhibition ‘Shelter 2014’ this time? You are expecting Rs 500 cr business from next year? Then on which premium projects do you bank on to garner revenue?
A. We started off for Shelter 2014 with only one objective in mind i.e. to deliver a whole new experience to the visitors and customers. For the same, from the media plan to on-site infrastructure was upgraded with much better and smooth management process. The response was mind boggling. Everyone who visited was enthralled and that resulted in many positive conversions at the venue itself. With over 100 apartments, some NA plots and land bookings at the exhibition itself from various exhibitors it was a very satisfying moment for all of us at the organizing committee. The property conversions are still going on along with many site visits of the people who had visited the expo. There are hundreds of projects under construction in the city and to bank on just a few would be unfair. But what I can definitely bank on is that the city of Nashik would definitely grow to new heights in the time to come with unprecedented growth that we expect soon.
5. What are the basic issues before the realtors at Nashik? How Credai Nashik is moving to address the issues pending?
A. As far as the issues for realtors are concerned, I think that the regulations which govern the realty market play the major part. In the last few years we have seen various new laws and modifications which have been introduced. There is little clarity on the LIG/MIG housing scheme of the state government which is applicable to any plot size above 4000sqm. Some modifications in the Nashik Municipal Corporation [NMC] by-laws are pending with the state government for approval since over 3 years. Ready Reckoner rates in many areas of the city are higher than the current prevailing market rates, making it impossible for the deal to happen in those areas due to the section 43 CA of the income tax Act. Environment clearance is a major concern for any project above 20,000 sqm and it takes many years to obtain it. All delays in getting sanctions and many a times getting clarity on new regulations, cause the increase in the price of the flats. The delay cost turns upto 35% to 50% of the value of the property depending on the time frame of approval. Taxation is also an important factor contributing nearly 15% of the price of the flat by means of Stamp duty, registration charges, service tax, VAT, LBT and development charges. We at CREDAI Nashik are in constant touch with the policy makers at the local, state and national level and we keep providing our representations on various forums. Our only interest is to get faster sanctions, to have clarity in the law and to deliver projects faster which would benefit the end users.