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Indian realtor Sanghvi to promote Rs2.5 bn realty in GCC
Sanghvi Parrsssva Group, a major real estate developer in Mumbai, has delivered 18,000 residences across 72 projects and it prepares for the handover of more projects in 2018 and 2019. Ramesh Sanghvi, Chairman and Managing Director of Sanghvi Parrsssva Group and a reputed Indian developer and social entrepreneur, says the ongoing economic reforms and changes in the real estate sector will improve the economic environment in India, make the economy more transparent that will help strengthen investor confidence.
The company is planning to enter the UAE and Gulf markets to promote its projects to the Non-Resident Indian (NRI) community, who represents between 8-12 percent of the total number of real estate buyers. According to a latest report, more than 130,000 residential units will be sold across India and if the NRIs represent 10 percent of that – means that the NRIs would purchase at least 13,000 residential units this year. With an average price of Rs10 million, this could translate a whopping Rs130 billion market. Nearly half of the Rs130 billion are generated out of the Gulf region.
Sanghvi Parrsssva Group is the legacy of Sanghvi Group formed in 1983 by Shri Sankalchand Sanghvi who had started working with Lodha and were initially partners. Born in 1968, Ramesh Sanghvi was mentored by his father Shri Sankalchand Sanghvi, from whom he learnt the important philosophies of life and the vision he further developed for the Sanghvi Parrsssva Group.
Ramesh Sanghvi holds a Bachelor’s degree in Commerce from Mumbai University and holds a Bachelor’s degree in General Law from Government Law College. However, his business acumen and vision was shaped much earlier in his life by his father.
He is a staunch supporter of values and commitment. Sanghvi Parrsssva Group, the real estate arm of Sanghvi Group, was established in 2015. Sanghvi Parrsssva Group is one of Mumbai’s premier real estate group primarily involved in the development and sale of residential and commercial properties. Sanghvi is a dynamic entrepreneur and visionary whose ethos revolves around high work ethics, being passionate about one’s dreams, and enriching the lives of others. Later, in 1986, Ramesh Sanghvi joined the business and the Lodha Sanghvi Group was established.
However, in 1996, the two companies decided to part ways; the family business now includes Ramesh Sanghvi and his three brothers, and thus Sanghvi Group was born. Today, under the reigns of Ramesh Sanghvi, Sanghvi Parrsssva Group of Companies is on a mission to transform Mumbai’s skyline. He aims to take the company to new heights by expanding its horizons and seizing every opportunity that comes along.
Although Shri Sankalchand Sanghvi was Ramesh’s overall mentor for life, it has been Mangal Prabhat Lodha who has been Ramesh’s real estate business mentor who has inspired him to finish what they started.
From 1986 to 2015, he was completely devoted towards building the company.
By spending quality time with his family, he is able to give the best gift to his children: time. Ramesh Sanghvi’s journey so far has not been without failures. In his own words, he says, ‘Failure is a part of growing; it is a step towards achieving the goal. It is an evidence/sign that you are growing. Failures make a person stronger and more intelligent’.
Sanghvi Parrsssva Group has a number of landmark developments and accolades to its name. In 2017, the group won the prestigious title ‘The Best Affordable Housing Project of the Year 2017’ for Sanghvi Golden City at the 32nd National Real Estate Annual Awards. Sanghvi Parrsssva Group currently employs over 100 professionals across offices and provides site-based employment to over 500 workers.
The group currently has ongoing projects in Ghatkopar, Malad, Andheri, Bhiwandi and Atgaon, and Shahpur areas. They also have upcoming projects in Kandivali, Parel, Goregaon, Mazgaon, Vasind and Lalbaugh areas, and we will be launching projects in Charni Road, Khetwadi and Lower Parel areas shortly.
Sanghvi Parrsssva Group has also diversified into contracting of large projects in real estate and infrastructure in Mumbai and Ahmedabad. While Sanghvi Parrsssva Group is highly passionate about what it does, it has not forgotten the importance of giving back to society.
The group’s philanthropic and CSR activities include the launch of Seema Sanghvi Welfare Foundation.The key focus areas of their CSR initiatives include children education and serving the country in all the possible ways.
In an exclusive interview with Gulf Property, Ramesh Sanghvi, Chairman and Managing Director of Sanghvi Parrsssva Group, elaborated his thoughts on Indian real estate market. Excerpts:
Gulf Property: What is your view on India’s real estate market in general and in Mumbai in particular?
Ramesh Sanghvi: The rapid urbanisation is expected to offer significant opportunities for real estate and infrastructure development in Indian cities.
Reform measures including implementation of RERA, a push to affordable housing and smart cities mission have made India an investor-friendly destination for the real estate market.
This sector has witnessed high growth in recent times with the rise in demand for office as well as residential spaces. It is also important to note that the real estate developers have been instrumental in changing the face of India through building state-of-the-art infrastructure, buildings, townships, malls spread all over the country.
The Mumbai Metropolitan Region has witnessed a growth of 13 percent. The residential sales in Tier-1 cites rose by 9 percent from a year ago led by affordable housing, according to data from Liases Foras Real Estate rating and research.
Maharashtra RERA has brought developers and buyers on a common platform and provides relief to homebuyers. MahaRERA is the revolution to make informal real estate industry a very formal one. Rationalisation of real estate transaction process in entire industry has made cost of acquisition predictable.
Projects will be completed in time and there will be a custodian of faith in regulator authority. Since its inception, RERA has satisfied hundreds and thousands of flats buyers who were looping in dark and were running pillar to post get their dream home. It is a great time ahead for real estate industry under the umbrella of regulatory reforms in the form of RERA. Now builders cannot utilise the money from the current project for buying land for other projects.
Has the sector recovered from the demonetisation?
Yes the market has recovered from the demonetisation and a high-level of transparency is being maintained by the developers.
This is giving the confidence to the new buyers to invest in property market.
The demonetisation crisis was further aggravated due to the implementation of various policy reforms like RERA and GST. These reforms were aimed at protecting consumer interest, improving transparency in the sector and making builders more accountable, among others.
The affordable housing segment has been the driving force in the residential sector; even commercial real estate absorption has remained strong, showing signs of a robust business environment. A positive leasing market with strong global occupier demand has sustained investors’ interest in the commercial segment.
What is the market outlook – according to you?
Increasing incomes, urbanisation and economic growth are pushing the demand of residential and commercial realty demand in India.
Real estate has also become a preferred asset class for investment. Segments like warehousing, hospitality and affordable houses are growing at a fast pace in India, presenting wider opportunities for investors.
Government of India’s aim of Housing for all in 2020 is driving the residential development activity, while the Real Estate [Regulation and Development] Act (RERA) 2016 is making market more transparent. It is also expected that this sector will incur more non-resident Indian [NRI] investment in the both short term and long term.
Foreign Direct Investment (FDI): The government has permitted FDI up to 100 percent under automatic route in townships, housing, built-up infrastructure and construction development projects which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure facilities, such as roads and bridges, transit systems etc., that will continue to drive the demand.
Do you think it’s the right time to invest in properties in India? Why?
Yes. Post RERA implementation in India, investment in properties in India has become more safe and transparent.
As the overall market sentiments are low it is the right time to invest in India, majority of the developers are offering good discounts on rates and free bees on their properties. There are companies who are offering tailor made payment schedule to suit the payment option for the prospective buyers.
Home loan interest rates are at all-time low: The excess liquidity in the banking system has led the RBI reign the key lending rates. Resultantly, the home loan interest rates that were recorded at around 9.5 percent a year in 2016 have now been floating in the range between 8.3-8.4 percent.
Steady revival of interest from global investor fraternity: The implementation of overarching regulatory mechanisms has instilled a much higher level of confidence in the global investor fraternity. The real estate sector is projected to receive Private Equity (PE) investments to the tune of US$4 billion during this fiscal year, as per industry reports.
How does the current exchange rate of the Indian Rupee favour the NRIs, especially in terms of buying properties?
The fluctuating Indian rupee and introduction of various regulations to bring in transparency and accountability are making real estate market more lucrative for the non-resident Indians [NRIs].
The drop in rupee can be seen as investment opportunity for the individual buyers as well as institutional investors. About 7-8 percent of the inventory is bought and held by the NRI’s every year.
How many projects has Sanghvi Parrsssva Group delivered so far? How many million square feet of development have you delivered so far?
The following projects have been delivered by Sanghvi Parrsssva Group so far: Sanghvi Golden City – Atgaon, Shahpur; Sanghvi Parrsssva Eleganza – Ghatkopar and Sanghvi Jewel – Malad.
What is the total value of the properties delivered by Sanghvi Parrsssva Group?
The total value of the properties delivered by the Sanghvi Parrsssva Group is INR1.23 billion.
How many properties are currently under construction and development?
We have a good number of projects currently under development and planning. The properties which are under construction and development are: Sanghvi Parrsssva Elegenza – Ghatkopa; Sanghvi Parrsssva Classic – Bhiwandi; Sanghvi Parrsssva City – Atgaon, Shahpur; Sanghvi Arham Bluz – Andheri; Sanghvi Parrsssva ExcellenSea – Charni Road; Neev Galaxy – Malad
Our future projects are: Sanghvi Parrsssva Concorde – Khetwadi; Sanghvi Parrsssva Corporate Park – Lower Parel; Sanghvi Parrsssva Crystal – Parel; Sanghvi Parrsssva Empire – Goregaon; Sanghvi Parrsssva Enclave – Gojeshwari; Mohankheda Nagri – Vasind; Sanghvi Parrsssva Elite – Ghatkopar; Sanghvi Parrsssva Estate – Mazgaon; Sanghvi Parrsssva Emerald – Kandivali; Sanghvi Parrsssva Vista – Lalbaugh.
What is the combined value of the properties currently under construction and development?
The total value of the properties under construction and development are INR2.56 billion.
How many properties are being delivered this year and in 2019?
The projects delivered in 2018 are Sanghvi Parrsssva Elegenza, Ghatkopar, Sanghvi Golden City – Atgaon. The properties that will be delivered in 2019 are Sanghvi Parrsssva City, Atgaon and Sanghvi Parrsssva Classic, Bhiwandi.
What is your marketing game plan to attract investors from the UAE?
Sanghvi Parrsssva Group has planned various marketing activities to attract the investors. These include road shows and investor meet; channel partner meeting; participation in property shows; special rates and tailor-made payment plan; marketing campaigns in the media.
How is the demand-supply situation in real estate sector in India?
The demand and supply totally depends on the location and the development one does. Proper planning, no area wastage will make every project sell faster.
What support will your company provide to property buyers from the UAE?
Sanghvi Parrsssva Group has various projects for every segment and budget. All our projects are as per the RERA guidelines and approved by all housing finance. We can have tailored made payment schedule and other payment options for our property buyers from the UAE.
The better locations, transparency and trust of over 35 years in the industry will add value to all our projects. Each of our projects offered will be timely completed with international standard. Home loan option will be there for the desired client. We will also help in renting out the units for the investors because of having good network with the channel partners. We will also help in re-selling their flat with mutually agreed lock-in period.
Do you plan to set up your marketing and sales office in the UAE – in future?
Yes in future we are open to start marketing and sales office in future in the UAE.
How do you see the changing landscape of the Indian real estate market?
The sector is in the positive territory. The new infrastructure which is being created will enable growth of housing, will enable improved access to new, peripheral areas near existing cities where smart cities would be created; the government’s new policies are supporting creation of housing stock for the end-user. The Mumbai Trans-Harbour link would open up huge chunk of land across the harbour, which could be an extension of South Mumbai.