Greater Noida is No Longer an Affordable Market l MB Dialogue Ft. Mr. Suresh Garg, CMD, Nirala World

Summary

The video discusses the growing real estate and construction sectors in Delhi NCR, focusing on trends in residential development, infrastructure projects, and the challenges posed by rising construction costs. Mr. Suresh Garg, CMD of Nirala World, highlights the importance of timely delivery, quality construction, and after-sales service in boosting buyer confidence. The conversation also delves into the role of sustainable practices in minimizing pollution, with a focus on green buildings and eco-friendly practices. Moreover, the industry faces challenges like skill shortages, affordability, and high GST, all of which impact pricing. Despite this, Nirala World emphasizes its commitment to delivering projects ahead of schedule with high-quality construction and prime locations.

Takeaways

• 😀 The Delhi NCR real estate and construction sectors are facing both significant opportunities and challenges due to rising construction costs and large-scale infrastructure projects.
• 😀 Buyer confidence plays a critical role in residential real estate; buyers are willing to invest at any price if they trust the builder's timely delivery and quality of construction.
• 😀 The real estate industry is now seen as a service industry, with after-sales service and maintenance becoming crucial for maintaining buyer confidence.
• 😀 Rising construction costs are inevitable when quality construction and amenities are prioritized, but buyers are still willing to pay more for better products and services.
• 😀 Pollution, particularly from the construction sector, is a major concern in Delhi NCR, with construction responsible for about 40% of the pollution.
• 😀 Sustainable building practices are becoming essential, with developers using aluminum formwork and other pollution-minimizing techniques in high-rise constructions.
• 😀 Green building certifications like LEED are becoming a standard in the real estate industry, ensuring that projects are environmentally sustainable.
• 😀 The implementation of solar energy systems, water recycling, and efficient waste management in buildings helps reduce operational costs while promoting sustainability.
• 😀 The government's GST policy has impacted construction costs, with the removal of input tax credit for GST increasing the overall cost of construction.
• 😀 There is a struggle with skilled labor availability in construction, and the industry calls for more effective skill development programs to ensure high-quality workmanship.
• 😀 Nirala World’s unique selling points (USPs) include prime locations, high-quality construction, and a reputation for delivering projects ahead of schedule.

Q & A

What are the main opportunities and challenges faced by the Delhi NCR real estate and construction sectors?

The Delhi NCR real estate and construction sectors are experiencing both tremendous opportunities and significant challenges. These include rising construction costs, the growing demand for residential and large-scale infrastructure projects, and the need for sustainable building practices to address environmental concerns like pollution.

What role does buyer confidence play in the real estate market in Delhi NCR?

Buyer confidence is crucial in the real estate market. Buyers are more likely to purchase properties if they believe the builder will deliver on time, provide high-quality construction, and offer strong after-sales services. If these expectations are met, buyers are willing to invest at any price.

How has the rise in construction costs affected pricing in the real estate market?

The rise in construction costs, driven by factors like higher quality standards and completion of amenities, has led to increased property prices. However, buyers are still willing to pay higher prices for well-built homes with good facilities and services.

What is the impact of pollution in the Delhi NCR region's construction sector, and how is the industry addressing this issue?

Construction in Delhi NCR is responsible for a significant amount of pollution, with estimates suggesting that it contributes up to 40%. To address this, the industry is adopting sustainable practices such as using aluminum form shuttering for high-rise buildings, minimizing waste, and using recycled water from sewage treatment plants (STPs) for construction.

What sustainable building practices are being adopted in the real estate sector to reduce environmental impact?

Sustainable practices in real estate include building green-certified structures, utilizing solar power for common areas, recycling water, and using recycled materials. Builders are also focusing on minimizing energy consumption and waste, ensuring that buildings are eco-friendly and resource-efficient.

How do green building certifications, such as LEED, impact real estate pricing and buyer decisions?

Green building certifications, like LEED, focus on sustainability and energy efficiency, which may initially increase construction costs. However, these certifications lead to long-term savings through reduced energy consumption, lower maintenance costs, and increased value, making them attractive to buyers looking for eco-friendly homes.

What steps is the real estate industry taking to minimize pollution during construction?

The industry is adopting various measures to minimize pollution, such as using smoke guns to reduce air pollution, water sprinkling to control dust, covering construction materials to prevent debris from scattering, and using recycled water for non-potable purposes. These efforts aim to comply with environmental regulations and reduce pollution.

How does the construction industry ensure that buildings are both sustainable and cost-effective in the long run?

Sustainable buildings aim to reduce long-term costs by generating their own energy, recycling water, and reducing waste. For example, solar lighting, solar water heating, and in-house waste recycling are utilized to lower energy consumption and maintenance costs, thus providing long-term savings to both builders and residents.

What role does the government play in the affordability of real estate, and what changes does the industry expect from the government?

The government plays a key role in making real estate affordable by controlling land supply and taxes. The industry expects the government to restore input credit for GST, which was previously available and helped reduce construction costs. By reducing taxes and providing affordable land, the government could help lower property prices for buyers.

What are the current challenges related to skilled labor in the construction sector, and what is being done to address these challenges?

Skilled labor remains a significant challenge in the construction sector, with a shortage of trained workers in areas such as steel binding and shuttering. To address this, industry players like CRDAI are offering training programs. However, there is a need for more effective skill development programs from both the government and private sector to improve the quality and availability of skilled workers.