The deadline for project registrations with Mahrashtra’s RERA is around the corner. There is a scrambling among the developers to not miss this deadline of 31st July 2017. So far, Maharashtra is ahead of other states for the implementation of RERA. All stake holders are waiting to see RERA implemented smoothly and bring in more transparency in the Real Estate industry. We aims to bring the view points of all stake holders. Team Estrade discussed RERA and other matters concerning the industry during a discussion with Vijay Pawar, Founder & Director – Mirador Dewellers Pvt Ltd. Following are the excerpts of this interaction.
About Mirador Dewellers Pvt Ltd.: Mirador Dewellers Pvt Ltd. , is a well – known real estate company in India, headquartered in Mumbai. It caters to infrastructural developments and residential projects, which include Super Luxury, Luxury and Affordable Housing segments. The brand’s expertise lies in the development and construction of ecological & sustainable residences. Being in the field of real estate since the year 2004, their prime focus and dedication aims at obtaining customer satisfaction over profit maximization. On altruistic grounds, the brand has also taken up several initiatives in the face of Mirador Foundation, with an aim to bring about a positive transition at a macro level. Audacity, Accomplishments, Admiration, Accountability, Honesty and Transparency are the key ethics and elements which contribute to the accomplishment and fulfilment of their ultimate goal.
Team Estrade: Tell us about the Mirador Dewellers Pvt. Ltd.? How you started and built this brand?
I started Mirador Dewellers Pvt. Ltd. in the year 2004, so as to fulfil my dream of providing good homes to the needy and the ones who cannot afford highly priced homes. With this vision I started Mirador Contractors with only Rs 15,000/-. From aspiring to offer quality homes at affordable rates to the Middle Income Group to establishing Mirador Dewellers Pvt. Ltd. and having already built hundreds of homes, it has been a long journey filled with a lot of excitement and burning of mid-night oil, over numerous nights. Mirador Dewellers Pvt. Ltd. today takes pride in the fact that we shall bring families and neighbours together with the help of our most ambitious project – Mirador Prangan, at Atgaon in Shahapur.
Team Estrade: Mirador has pan-India presence? You have developed or currently developing projects in which cities?
At present we have two residential projects (one of which is a township – Mirador Prangan) in Shahapur and two plots projects, again in Shahapur only. We do have plans to shift our focus toward developing plots in other cities, including a few major ones across India, in the distant future.
Team Estrade: What is the major hurdle for the development of India’s Real Estate industry? What positive steps would you suggest for all stake holders of the industry?
The government is proactively taking efforts to bring about changes which will result in benefits for all the stakeholders in the real estate industry. One of such positive measures is the RERA Act which has promised to mend the relationship between the developers and customers while also regularising the real estate development sector in our country.
However, there are gaps in clarity, in developers’ minds, regarding some of the policies stipulated by the recently brought into effect RERA. Another major hurdle is the wait for the implementation of the Single Window Clearance process. Developers are expecting the aforementioned process to come into effect soon so as to make the clearance process easier and quicker.
Team Estrade: What are your views on the Real Estate Regulatory Act 2016? What in your view are the major implications for developers and buyers, both in positive and negative terms?
There is a fixed percentage of the land value which every developer irrespective of their size and scale has to park safely, as per the rules of RERA but this is seemingly a bit tough to keep up with, because even the genuine developers due to their small or medium business size will suffer. We on our part suggest that the government should re-look at this particular clause of RERA and also grant some time to the developers so they could get accustomed to the changes that they witness in the near or distant future as a direct or indirect result of RERA.
Team Estrade: Is the eco system in India ripe to fund very large Real Estate and infrastructure projects? What we need to improve in the funding aspects to help build this industry at a fast pace?
The demand for homes has been on a steady rise owing to the increasing population in the country. In order to meet this demand, the government has to support the development of areas outside major metropolitan cities because development costs in cities are not only too high but the constraint of space also adds to the woes of developers and governments alike. In order to tackle this burning issue, the government needs to devise a strategy to develop suburban areas such as Shahapur and also the peripheral areas. Planned development of such identified areas will not only make space for large size Real Estate and Infrastructure projects but also ensure that the developments are affordable to all. To be able to accomplish this effectively, as a suggestion we feel that the government must consider Private-Public Partnerships in the real estate and infrastructural development sector.
Team Estrade: What do you feel is the future of Sustainable development, Hi-tech and Green Building projects?
Yes, we are of the opinion that as mentioned earlier, planned development and availability of land in suburban areas and peripheral regions, the ambition to become an example of a country with good quality SMART cities to the world, will become achievable.
Mirador Dewellers Pvt. Ltd. has products in which all segments of the market? Which product segment is the highest revenue earner for your company?
Mirador Dewellers Pvt. Ltd. is primarily into developing and then selling of plots and residential apartments. Apart from the construction related works that it is into, it also has an organization called “Mirador Foundation” which is into charitable works. All our projects have done well with two of them, Oasis Estate Phase – 1 and Mirador Utsaav Phase – 1 being sell outs.
Team Estrade: Is affordable housing commercially viable? How Mirador plans to benefit from government’s flagship programs such as ‘Housing for All by 2022’ and ‘100 Smart Cities’?
We strongly believe in the intentions and initiatives being undertaken by the government. We feel that with a few tweaks to a few of them, the developers and the government could together change the face of the real estate sector in our country. On this note, we would like to add that we do look to reap the benefits of schemes such as the Pradhan Mantri Awaas Yojna and others. We as developers could use all the help that we receive from the government in helping it achieve its set goals of “Housing for all by 2022” and “100 Smart Cities”.
Team Estrade: What are your expectations from the Government, both at the centre and at the state levels, for Real Estate and Infra?
We expect the government to plan any future developments strategically and only after the interests of all the shareholders are taken into account including those of the customers too. We wish that before a major policy is brought into effect, the community of developers be given a bit of time to be able to understand the policy better and raise any questions they might have in their respective minds. For example, apart from RERA and the GST implementation, there is also the New Thane District Regional Plan which has also gone underway leaving one with less adequate time to be able to absorb to these radical changes.
Team Estrade: What is the biggest challenge faced currently by the Real Estate industry?
The biggest challenges as explained is the many changes being introduced at a high pace without giving the developers community a chance to understand the policies bringing in changes, with adequate amount of time to do so.
Team Estrade: REIT and FDI, which one of the two will dominate the market for Real Estate and Infra projects over next 2 years? Bank funding for developers to fund projects is set to ease?
FDI will dominate when compared with REIT but for this the government has to allow the arrival of an open investment culture in India.
Team Estrade: Is the Real Estate industry facing a shortage of skilled workforce? The industry doesn’t seem have made a concerted effort in this regard in comparison to other industries, such as wellness, manufacturing, IT, etc. Your comments?
Yes there is an evident shortage of skilled workforce in the real estate industry and the major reason for this is the dearth of any emphasis on the development of it. For the development of skilled workforce in the real estate sector, there is a need for vocational courses allied to real estate sector for aspirants wanting to learn and then work in the sector.
Team Estrade: With RERA in place in Maharashtra, what do you see the effect on Real Estate prices over the next one year?
The prices may see a drop for now but then gradually we will see an increase. Though the customers would be more accommodating of the eventual surge in the prices mainly because of two reasons; Firstly– they are aware of this and secondly – they know that RERA will protect their interests.
Team Estrade: What type of projects are getting funding these days?
There is a lot for everyone in the market to tap and benefit from when it comes to the real estate landscape in our country. Evidently, all types of projects are receiving funding from desirable quarters. With some tweaks to the FDI policy and it being introduced, there will be furthermore desirable changes and only for the better.
Team Estrade: What is your vision for Mirador Dewellers Pvt. Ltd., in
- Near term future, over the rest of 2017
- Long term, over the next 4 years or so.
For the remainder of 2017, as an organization our focus would be to execute the strategy we have in place and try to achieve the desired results. We would be focusing on our upcoming project, Mirador Prangan and also our other projects, some of which are already in their second phases and ready for possession.
Over the course of the next 4 years, we wish to tap into other regions surrounding Shahapur and look to take forward our concept of Communities through which we wish to gift people those good old days when neighbours were more like families and colonies saw a celebration every other day back. Our focus will majorly lie only on the Affordable Housing segment during this period.
Team Estrade: According to you, what are going to be the trends that define the Real Estate of India and Maharashtra (especially MMRDA and Pune), over this one year?
The real estate space is pretty dynamic in nature, in a sense that the changes brought about in the policies governing real estate and the fluctuating demand rate (mostly on the rise in the past decade or so) affects it directly. The newly introduced GST and the RERA Act are two good examples of the aforementioned. So basically, any new policy or new amendments being made to the old ones, the changes in the political scenario, demands of the customers which does include population as a crucial factor and the national as well as world economy are some of the factors, which will serve as trends that define the Real Estate of India and Maharashtra.
“Small and medium developers will face hardships from some RERA rules”