Sushma Group has made its mark as a leading eal estate brand of not just Tricity of Chandigarh, Mohali and Panchkula but of North India.Over the ;ast about one and a half decade of its inception, the real estate group has delivered 15 residential and commercial projects and there are 8 ongoing projects.In this exclusive interview with Torbit Realty, Prateek Mittal, Executive Director of Sushma Group talks about the post-covid real estate scenario and emerging trends in residential and commercial real estate and his company’s plan for the year 2022. Excerpts
How has the Tricity real estate market grown over the last few years? Post-covid, both residential and commercial real estate has seen good recovery, How do you look at pre-covid vis-a-vis post covid real estate scene in this micro market?
Over the years Tricity’s real estate market has carved a niche for itself. Not only has it made a name but people from various parts of North India have been active in this property market both for living and investment purposes. Talking specifically of the post-covid recovery in real estate ,Tricity has witnessed a significant comeback. Unsold inventory is down, new projects have been announced and under-construction properties are eliciting major interest from buyers. This is set to grow further.
Post-covid, luxury real estate is witnessing a good pick-up. What’s the scenario here both with regard to luxury as well as affordable housing? What’s the overall residential outlook – under construction, ready-to-move and inventory overhang?
One of the most remarkable aspects of the post-pandemic real estate market has been the growth of the luxury segment. This momentum is only going to continue forward at least till the first quarter of 2023. The affordable segment as usual is going to perform well. However, the steady increase in repo rate by RBI might act as a dampener. As far as the overall residential outlook is concerned, unsold inventory is under control, ready-to-move-in properties are increasingly getting scarce and the share of under-construction properties is going up further..
What has been the real estate dynamics of both residential and commercial real estate? How has been the affordable and luxury housing scenario with regard to demand, supply, new launches, sale of under-construction vs ready-to-move homes in Tricity?
The major factor for the post-pandemic upsurge was the realisation of the value of one’s own home. Besides, home buyers were also looking forward to shifting to larger spaces. In the case of commercial properties, the segment had taken a major hit. But with the gradual opening up of the economy and the success of vaccination, reversed the trend. Also, the property prices and interest rates were at recent lows and ready-to-move-in properties were also readily available adding to the momentum. Now inventory is at a manageable level, and even though ready-to-move-in properties are the most sought after, but they are increasingly getting scarce. In view of this, the spotlight has shifted towards under-construction properties. The Tricity is also being specifically sought after for its proximity to the hills.
Post-covid, corporates are looking at hub and spoke model and setting up satellite offices in metro suburbs and in tier 2 & 3 cities. Similarly, there is a growing trend of remote work from home offices. How have these trends been aiding the growth of residential and commercial real estate in this region?
Yes, the hub and spoke model has been gaining traction and tier 2 and tier 3 cities have benefitted from it. However, remote work and work-from-home offices are gradually declining but one thing that pandemic has ensured is that it has become an accepted norm and this model is going to exist simultaneously. Both residential and commercial real estate in Tricity has by and large benefitted from these developments.
The government is focusing on infrastructure development in a big way. How is infra development in Tri City contributing to the real estate growth in the region?
Chandigarh has always been a sought-after residential city. This is why the areas surrounding it had emerged as sought-after dwelling destinations. Proximity to the Himalayas has also contributed towards its popularity. The emergence of an industrial hub has further boosted its prospects. Now with the government’s major thrust on infrastructural development among other things, has led to the increase in demand for residential and commercial spaces, in turn further aiding realty growth.
Post-covid, how do you see real estate investment prospects in general and the Tricity in particular?
The future prospects, without a doubt are great. The Tricity has certain intrinsic advantages that make the region a hotbed, both for residential and commercial real estate.
What has been the performance of your group? What are your business plans this year including new launches ?
Our company has performed exceedingly well. Going forward with regard to our plans for new launches this year, we have a few projects both in the residential and commercial segments which are in the pipeline.
Residential real estate post-covid has made a smart recovery. Now that festive season is here what according to you is the outlook for residential realty in general in India and Tricity in particular?
It goes without saying that the prospects in real estate are good. The recent industry report on the increasing PE investment in both commercial office and residential real estate is a pointer in this direction. There is a huge demand for homes all over the country including Tricity. And as the economy goes on to improve further, and the offices keep on opening, the commercial segment also has a bright future.