Smart World Developers, a new real estate company focusing on millennials and launched by Gurgaon- based M3M group, is set to light up festive realty, with the launch of two residential projects in November. These projects will together offer 4000 low-rise units. Piramal Capital, IIFL Group and the Bansal family of M3M have invested Rs 700 crore for these two projects. The company will invest up to Rs 10000 crore in developing residential projects in Gurgaon. Smart World Developers Which is eyeing sales worth Rs 5000 crore by March 2022, plans to take its brand pan-India, with Pune and Bengaluru being the next destinations to be tapped after Gurgaon.
Our USP is Our Millennials-focused Brand
Aishwarya Bansal, the Harvard- educated entrepreneur and Co-Founder of Smart World Developers speaks to Vinod Behl about her entrepreneurial passion and her vision and goal for her baby- Brand Smart World Developers.
* When you already have an M3M brand, what made you launch a new brand?
Our new company has a USP in terms of a unique positioning of brand and product. Our millennials-focused brand with products that exclusively catering to their lifestyle, is our USP. In line with the preference of millennials, we will be focusing on green sustainable developments, with high lifestyle quotient.
* What’s the thought behind launching a Millennials-focused brand?
India has a rich dividend in the form of 65% of its young population. Our fastest growing economy is driven by a large pool of millennials. So, naturally we would want to leverage this high potential offered by millennials. We want to be the catalyst of change and herald the future of real estate in India not just with our unique homes that young aspiring Indians seek but also the professionalism and customer experience that redefines India realty with high benchmarks.
* It is an era of women power and the rise of women entrepreneurship. Was this thought somewhere there behind launching Smart World Developers?
This company is entirely my brainchild. Being an alumnus of the Executive Programme on Investment Banking and Capital Acquisition at Harvard Business School, Boston and a post- graduate in finance from Indian Institute of Learning & Management, I wanted to utilize/leverage my global exposure as an independent entrepreneur and successfully drive my real estate company with an innovative and unique brand strategy.
* What is the reason behind Smart World Developers ‘ initial focus on the NCR market, particularly Gurgaon?
We are initially focusing on NCR because it has a great potential. To begin with we have chosen Gurgaon which is the home turf of M3M. The high potential in the NCR can be gauged from the fact that there is a demand for 40000-50000 units and we will be targeting 15 % of this pie.
* What is your vision for Smart World Developers?
We have a billion-dollar vision to bring a million dollars smile and to develop a trillion-dollar company.
* What are you aiming for with Smart World Developers?
We will be aiming to be among the top 3 real estate companies. As we have pan-India aspirations, we will be competing with big brands like Tata, Godrej, Shapoorji Pallonji etc.
Blurb: We will be aiming to be the top 3 real estate companies.
Design Instructions: Use the pic of Aishwarya Bansal
There is a Big Market for sub-One Crore Homes
Vivek Singhal, CEO, Smart World Developers talks to Vinod Behl about the brand concept, business strategy and growth plans.
* What is your vision of launching this new brand-Smart World Developers?
Our vision is to reform Indian real estate by offering a unique concept of living, well-researched and designed for the aspiring millennial, both in terms of value and lifestyle.
* What is the brand USP?
The USP of our brand is an exclusive product tailored to the needs and aspirations of millennials. We will bridge the gap between what they expect and what is offered. There will be a lot of focus on unique innovative designs to meet millennials’ aspirations of well-designed lifestyle homes. Scale and speed will be another specialty for these tech-driven homes.
* What will be the product focus and differentiation?
We will be focusing on low-rise floors and condominiums aimed at younger and first time home buyers. We will initially be focusing on Gurgaon and invest over Rs 8000- 10000 crore in developing residential projects in the city.
* What is the reason behind initially focusing on Gurgaon?
Gurgaon is our market and we know it very well. We understand the development and execution business in this part of NCR. well. Gurgaon market has a lot of potential. It was not getting 2 BHK lifestyle products. There is a big market for sub- 1 crore inventory, with buyers from Noida and Faridabad as well. We will be launching two residential projects in Gurgaon in the month of November.
* How much land bank do you have?
We already have 180-plus acres of land with us. We have 58 acres in New Gurgaon and 23 acres in Golf Course Extension
* Tell us about Gurgaon projects offerings?
We will be launching two projects under Deen Dayal Jan Awas Yojana (DDJAY) One of these projects will be in New Gurgaon while the other will be in Golf Course Extension. We will come up with 2400 and 1600 units respectively in these two projects.
* Will you be having a different business strategy outside NCR?
Yes. While in NCR cities of Gurgaon and Noida, we will have an asset heavy model, outside of NCR, we will however go for an asset light model. Our standard ticket size of Rs 80 lakh- Rs 1.5 crore will change as per different markets. Our idea is not to come up with a cheaper product but the one which fits into the ticket size. But our combination of size and value will exceed customer satisfaction. At Smart world, we are committed to giving full value to the customer, backed by professionalism and customer- centricity.
What will be your initial business potential?
The initial business potential of our two projects in Gurgaon will be of 6msf, with a topline of Rs 6500 crore.
* Going forward, what are your business plans?
After Gurgaon, we will be entering Noida market in the NCR. As part of our pan- India plan, we will be foraying into the markets of Mumbai MMR, Pune, Bengaluru, Hyderabad and Goa in the near future. Our next two markets will be Pune and Bengaluru which we will be targeting in the next 12-18 months. We will have a development potential of 2.5 crore sq ft, we will be launching 60 lakh sq ft at a development cost of Rs 3000 crore, targeting a sale value of Rs 5000 crore by March 2022.
New launches to perk up festive season
The significant pick up in new launches and residential sales will be lighting up the festive season, laying a solid ground for the growth of housing in the new year.
Under construction properties and new launches which till recently, were untouchables, are gaining traction post-pandemic. Prospective home buyers are buying into newly launched residential projects of top branded listed developers and other prominent developers with good delivery track record, owing to low development risk. Moreover, new launches have become attractive for home buyers as developers are keeping in mind the changed preferences of buyers with regard to green sustainable lifestyle developments with focus on health and wellbeing of occupants and newer facilities like home offices. The September quarter has seen a 70% rise in the number of residential projects launched in Q3, compared to Q2.
In Q3, 2021, as per the recent report of Square Yards, MMR registered a quarterly rise of 13% over Q2, with Thane and Western suburbs respectively clocking 31% and 28% rise. In Pune, new launches recorded a qoq growth of over 100%, with Western Pune and Northern Pune registering 40% and 25% growth respectively. Gurgaon contributed 11% to new launches across top 8 cities in Q3, with Golf Course Road Extension Road and Central Gurgaon registering 22% and 6% growth respectively. Noida’s share in total new launches amounted to 4%, with Noida Extension and Noida Expressway notching up 53% and 47% share of new launches respectively. In Hyderabad, West Hyderabad and North Hyderabad cornered 59% and 35% share of the overall new launches respectively. In Bangalore, however, new launches plummeted by 7% in the September quarter, with North Bangalore and East Bangalore respectively having 40% and 32% share of overall launches.
Despite the major setback to residential recovery following the second wave of Covid in April this year, residential sales in Q3, staged a promising comeback with a qoq rise of 65% in the number of transactions, owing to growing sentiment towards home ownership across 6 cities. The 2BHK homes accounted for about 50% of the sales. MMR topped with a GTV share of 26%, followed by 21% share of Noida, 15% Gurgaon, 14% Bangalore, 13% Pune and 11% Hyderabad. Majority of homebuyers (57%) clearly opted for mid-segment (Rs 30-60 lakh) and upper-middle-segment (Rs 60 lakh -1 crore) homes. As many as 30% homebuyers opted for affordable homes (less than Rs 30 lakh), a jump of 12% from the previous quarter.
The ongoing trend of sales exceeding supply is likely to continue, especially with expected record sales in the festive quarter of October-December 2021. In the wake of increasing vaccination coverage and improving economy, the year 2021, according to Anarock projections, is expected to witness an increase of 30% in sales and 35% in new launches over the previous year. Considering the ongoing sales tempo, 2023 is expected to emerge as a peak year, with estimated home sales of 3.17 lakh units, the third highest since 2013 and 2014 when 3.19 lakh and 3.43 lakh units were respectively sold across top 7 cities. So, festive times are here to herald happy real estate tidings. – Vinod Behl