Rajesh Prajapati, MD, Prajapati Constructions Ltd
In Mumbai, availability of land has reached a saturation point and prices have gone over the roof. In this kind of scenario, Navi Mumbai as an affordable housing destination offers immense opportunity for home buyers, according to Rajesh Prajapati - MD, Prajapati Constructions Ltd.
Excerpts of his Interview with Sandeep Pattnaik of Gharabari.com...
Q. 1. Low cost housing is the new mantra for the Govt. as part of its mission ‘Housing for All’. What incentives should be provided by the Govt. to boost low-cost housing in the Country?
Ans. Affordable housing is the only way forward for the real estate industry if it has to sustain and grow. With the current market slowdown, there is a growing need being felt within the industry to expand their bandwidth and enter the high growth potential segment of affordable housing.
The Government should take more positive steps to boost the affordable housing segment if they have to achieve their vision of “Housing for all by 2022”. The real estate industry has long been neglected and it is time now that it is granted industry status, as it is the second largest employment generator in the country, only after agriculture.
Q. 2. Most of the housing projects of the Prajapati Group are at the posh areas, mostly in Navi- Mumbai and Hyderabad. Then how you would look forward to meet the ever growing demand for housing for the poor, being majority population in this country live in urban slums?
Ans. Prajapati Group has always been in the forefront to walk hand-in-hand with the Government to meet the needs of Affordable Housing. We have always come forward to work for the betterment of the society by taking up various social causes and activities.
Affordable Housing is on top of our agenda. We have entered new places to make low-cost housing a reality. In Mumbai, availability of land has reached a saturation point and prices have gone over the roof. In this kind of scenario Navi Mumbai as an affordable housing destination offers immense opportunity for home buyers.
Major infrastructural projects are underway in and around Navi Mumbai which are likely to completely change the demographics of the region and make it the most promising real estate destination in the country.
Several nodes in Navi Mumbai such as Vashi, Belapur, Nerul, Kharghar and Panvel have also reached their saturation point. The recent infra developments have resulted in the emergence of new places like Ulwe and Dronagiri, which are in the vicinity of these development zones.
Dronagiri is one such attractive node in Navi Mumbai, which has immense growth potential being strategically located close to the employment catchment areas of ONGC and JNPT, just 22 Kms away from Vashi and about 3 Kms from Uran.
Dronagiri stands out as one of the most promising places to invest in due to its attractive pricing. At present the property prices are at a comfortable level ranging between Rs 3850-4850 per sft. , which is one of the lowest in MMR region. The demand for affordable housing has made Dronagiri the most promising residential destination for people to invest. With all these ongoing projects moving towards their completion, property prices are bound to shoot up in coming 3 to 4 years expected to reach a level of Rs 7000 - 8000 per sft.
Q. 3. You basically concentrate on Commercial-cum-Residential complexes. What’ the idea?
Ans. Mixed-use development that includes Commercial-cum-Residential projects has been the recent trend in the real estate industry. The idea behind such a concept is that residents can make use of the services of general utility outlets for their daily shopping needs; now available within their complex.
Q. 4. While the Union Govt is more keen to draw private investment in to the sector to give a push to its Smart City agenda, how Prajapati Construction would like to be part of this mission?
Ans. The Smart City agenda will get a push if the Government will introduce policies that are favourable in attracting private investment into the sector. For the Smart city concept to succeed, the government should look at adopting the PPP model which will bring in the much needed private funds into the sector. Also the Government should bring corrective measures by lowering the interest rates which will encourage the home buyers to buy the property. This will not only make home buying a reality but will also propel the growth of the industry.
Prajapati Constructions would definitely work closely with the Government to meet the Smart City agenda which will also help in the development of our country.
Q. 5. Prajapati Constructions is a closely-held company. Do you have any plan to go for public issue for future expansion or you will solely depend on your internal resources to execute projects?
Ans. Yes, we do have plans of expansion in the next few years. Public money will be sought as and when the requirement arises.
Q. 6. What is the total group size [in term of turnover] at present and what’s next down-the-line?
Ans. Presently we are having projects of 5 lac sq feet under construction. We have land of approx 2 lac sq feet which is under various stages of clearance. Also we are in negotiations for purchase of other lands within / NAINA areas.
7. Tell us something about your IT and ERP vertical…
Ans. The IT Vertical also known as Fauna Technologies Pvt. Ltd was incorporated in 2009. It has developed a customised tailor made ERP specially for the Gems & Jewellery Industry (G.J.P.E.) The ERP also known as DIAFLEX has got various modules and have complete solution for loose Diamonds travel right from rough diamonds from mines to market. The Diaflex eaten to about 30% of the Diamonds in Mumbai.
We are also partners of Amazon and provide On-line server solutions to Companies across Industries.