A leading real estate company of Pune, VTP Realty has outperformed its competitors, delivering a record 35 lakh sq ft of real estate in FY 23. Under the dynamic leadership of its CEO, Sachin Bhandari, the company has achieved a multifold rise in revenues – from Rs 90 crore in 2015 to Rs 4000 crore plus in 2022-23. The company ranked fifth nationally in terms of units sold and sixth in terms of total area sold. In this exclusive interview with Torbit Realty, Sachin Bhandari talks about the Pune real estate market, VTP’s brand philosophy, strength and strategy for future growth. Excerpts Vinod Behl:
How differentiated is Pune real estate market and what sets VTP Realty apart from its competitors, achieving record sales revenues?
Pune real estate has a unique demographic mix with the old Punekars and the new influx of migrant IT population coming into the city year after year. The city is experiencing rapid growth, mainly driven by the manufacturing and IT sectors. It is a magnet for working professionals from across the country as it offers a very good lifestyle with its pleasant weather all year round, great options for leisure and entertainment avenues, a vibrant nightlife and above all the city is one of the safest across the country. The availability of quality education and abundant job prospects has enticed many individuals to settle in Pune, thus fuelling its impressive growth within a relatively short span of time. Hence the real estate market too must cater to this rich and diverse demography of consumers.
VTP Realty has been a leader in Pune, for 5 years in a row, and enjoys a high real estate market share in the city. This is largely due to its commitment to its promises and the trust of a large number of customers it has earned over the years. Our unique philosophy of ‘Better Design, Better Build and Better Care’ ensures that our products are designed keeping the consumers ‘tastes and evolving aspirations at the centre of all thinking. Their proprietary MLA (Maximum Livable Area) design ensuring minimal wastage of space while designing the apartment layouts, has been our key USP. We have not only seen the highest sales numbers, but are also setting the highest benchmarks in delivery, across the city. Recently, we achieved a remarkable feat by delivering 35 lakh sq. ft. in just a single year (2022-23). The brand is a thought leader and has been setting the highest benchmarks with the best practices including delivery as per our promise.
How has Pune realty market fared over the last year and how do you see it performing this year? What according to you are the basic strengths of this market which are driving the growth?
As the pandemic unfolded, the real estate sector in Pune experienced a temporary slowdown due to limitations on construction activities, disrupted supply chains, job losses etc. Uncertainty loomed large, causing a decline in property transactions and affecting the overall sentiment of the market. However, the real estate market in Pune proved its resilience by adapting to the changing dynamics. In the aftermath of the pandemic, there has been a significant shift in demand and preferences. The pandemic-induced work-from-home culture has led to a growing need for spacious homes with dedicated work areas and access to outdoor spaces.
VTP Realty has played a significant role in addressing the evolving needs of homebuyers post-COVID-19, offering them a seamless and secure living experience. We have introduced several initiatives aimed at ensuring the safety and well-being of our customers. VTP Realty has quickly adapted to these shifting desires by combining spacious designs and long-term amenities that support a healthy and balanced living. We have begun providing work-from-home spaces as a separate amenity in our latest projects like Earth 1 & Flamante by VTP Luxe.
As Pune’s real estate market bounces back from the effects of the pandemic, it is set for growth and holds great promise for developers, homebuyers, and the entire real estate sector on the whole. The city has witnessed significant improvements in its transportation network, including the expansion of roadways, the development of new metro lines, and the enhancement of connectivity to neighboring cities. These infrastructural advancements not only make Pune more accessible but also increase the value of properties located in well-connected areas. With support from the government, favorable market conditions, and a focus on innovation, Pune will keep attracting more and more families to settle here. Branded developments will boost demand and developers like us known for their customer-centered approach and reliability, are expected to play a significant role in driving the market’s resurgence.
Today when customers are demanding space efficient sustainable and high-quality lifestyle homes, how do you leverage your strength (in terms of design, construction materials, construction technology and project management) to live up to customers’ expectations?
In adherence to our commitment towards crafting an impeccable lifestyle for our consumers, we are very sensitive to the fact that no lifestyle can be truly efficient if it isn’t sustainable. As leaders of the real estate industry, it is upon us to introduce many innovations so that others may follow suit.
While Environmental clearances have made basic eco-friendliness mandatory for every project, we go a step further and prioritize energy conservation by deploying DGU (double-glazed units) and use of tinted glass in our projects. This not only cuts down the energy bills but also has a high aesthetic appeal. Apart from that, all our apartments have motion sensor lights in the washrooms which not only save electricity but also spell convenience for the kids and the elderly. As a sustainable amenity, we incorporate outdoor workstations powered by solar energy in our projects. Our commercial projects are controlled by a central Building Management System which significantly improves the overall efficiency of the project by controlling the electricity consumption automatically. Furthermore, as the trend evolves, we will keep adding newer features in projects. Homes have transformed from mere four walls to a lifestyle choice for families. Consequently, providing excellent lifestyle amenities within our projects has become imperative for us
At VTP Realty, we meet the demands of customers seeking space-efficient, sustainable, and high-quality lifestyle homes by leveraging our strengths in design, construction materials, construction technology, and project management. Our experienced team focuses on innovative and efficient floor plans that maximize space utilization. We prioritize high-quality construction materials and embrace advanced construction technologies to enhance efficiency. With strong project management capabilities and open communication with customers, we ensure their expectations are met and exceeded. Our commitment to customer satisfaction drives us to continuously improve and innovate in all aspects of our projects.
Q What are the focus areas of VTP Realty with regard to geography and asset classes?
Based in Pune, we are currently doing projects only in the city. Future expansion plans include entry into Mumbai. This will be a strategic move to cement the leadership position the brand has achieved just with a single city. Hence by adding the financial nerve center of the country to its portfolio the brand aims to achieve a much higher orbit of success.
The brand started out as a mass brand with a wide spectrum of projects across the city with multiple choices in layouts, configurations and pricing. And by having a product for every taste, the brand has now become the most preferred real estate brand in Pune. Armed with the understanding of the market as well as the consumer’s pulse, we have recently launched 2 product lines – VTP Luxe and VTP Homes. The hallmark VTP product strengths will be borne by both the brands with Luxe focusing on the extravagance and larger than life offerings while VTP Homes will continue to design the perfect home for every pocket size. The brand has residential, commercial and villa projects in Pune currently. In the commercial sector, we focus on creating modern office spaces and commercial complexes. Additionally, We also develop retail properties, such as shopping malls and high-street retail spaces.
Q: What is your real estate launch pipeline and delivery target for this financial year in terms of projects, area and sales?
In the previous year, our sales turnover reached Rs 40 billion, and for this year, we are targeting sales in a range of Rs 60-70 billion. We currently have projects in two major townships, one in Pune West and another in Pune East. The brand will continue to grow its portfolio of residential, both under VTP Luxe and VTP Homes, in the two townships apart from newer locations within Pune like Wagholi, Thathawade, Baner.
Additionally, the brand will soon unveil its upcoming leisure-home hilltop township overlooking the Khadakwasla dam backwaters, featuring villas and plots. Furthermore, the two product lines will keep getting strengthened with newer launches through the year.
Q Going forward, what are the business/growth plans of the company and what kind of investment you have lined up?
Our primary focus for the next two years will be on the Pune market. Once we achieve significant milestones in Pune, our logical expansion plan would be to expand into Mumbai. Beyond that, we are also exploring opportunities to extend our presence into other markets as well.
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