The Hindu Business Line : Gujarat builders woo non-residents

One such effort was made at the recently concluded World Gujarati Conference organised in New Jersey by the Gujarat Institute of Housing and Estate Developers (GIHED), in association with the Association of Indian Americans in North America (AIANA).

Prominent members of the Gujarati community, many of them potential buyers, attended the event and were shown the possibilities of investment in their native State by a delegation of developers from Gujarat. Though actual transactions were not many , participants were of the opinion that deals will happen when the NRGs visit the State, helping the realty sector with a much needed shot in the arm.

“A lot of brochures were distributed and we even took the exhibition to Chicago. We expect transactions to happen in December and January when most NRGs visit Gujarat for medical treatment, business or tours. That is the time when the ones who have made enquiries might do some business,” said Mr Pratik Banker, Takshashila Realties Ltd.

Growth at slower pace

Takshashila is a property developer which has completed projects in Surat, Baroda and other cities of Gujarat.

Despite the slowdown, the realtor is going to invest Rs 385 crore in four projects planned for completion in a little more than two years.

Its signature project is a combination of commercial and residential buildings in the same area. A `Nano-Mall,’ of around one to three lakh sq.ft, a multiplex and bungalows or flats housed in the same compound is what they specialise in.

According to Mr Banker, the effects of the recession in the US and global slowdown were being felt by the realty markets of major cities such as Delhi and Mumbai, but smaller cities such as Ahmedabad were yet to face the heat, despite some tremors here and there.

Places such as East Ahmedabad, where end users are dominant, will not see a great dip in property prices. In the developing Western parts , builders are currently holding prices there is a possibility of a price dip — the main reason being, there are more investors or dealers in property than end users.

In places such as Delhi and Mumbai, where the ratio of investors to actual users is high, investors will hold on to their money now and not take a risk. But in the case of end users , there is real demand for property and that market will continue growing, mostly in non-metros and places that are not saturated in terms of property development.

As far as NRGs are concerned, the slowdown in India is not as much as that in the US and so they might think of investing here, we do not know, he added. “They have better valuation today against the rupee at 49-50 as opposed to Rs 43 at the time we went to the US.” He also feels that though the realty sector’s growth might slow down, it will not go into negative turf but continue to grow at a lower pace.

Mr Bimal Trivedi of Management Consultants, Consulting Catalyst, who had also participated in the WGC conference, says that though there was a huge turnout of visitors at the exposition and lots of enquiries made, the real business deals, if at all, would flow now.

It was a start, an awareness programme where the options were showcased to the NRG visitors. He is also optimistic about the Ahmedabad realty sector.

According to him, the rates of new schemes would fall by 10 to 15 per cent but old property rates would not be impacted.

More Stories on : Real Estate & Construction | NRIs | Gujarat

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