The real estate sector in 2023 was marked by a significant shift towards luxury housing, reflecting evolving consumer preferences. In an exclusive conversation with ETNowNews.com, Vivek Singhal, CEO, Smartworld Developers spoke on the impact of Budget 2024 on real estate sector, the technological advancements and more.
Q1: How would you characterize the performance of the real estate sector in the year 2023?
In India, the Indian real estate market, especially in the top seven cities, witnessed a 31% increase from the previous year, with 4.76 lakh units sold in 2023, surpassing the last decade’s high. This growth is primarily driven by the luxury segment. Industry reports from Anarock and CBRE South Asia highlight this trend. The Delhi-NCR region, for instance, experienced a notable 216% increase in high-end unit sales, underlining the growing appeal of luxury living. This is a clear indicator of a broader trend amongst homebuyers seeking exclusive amenities and personalized experiences.
There has been a noticeable increase in the demand for larger living spaces. Anarock’s data reveals a fivefold increase in new luxury supply in 2023 compared to 2018. This trend is not just confined to sales but extends to rising rentals for luxury homes, especially in urban centres like the NCR. The year 2023 was pivotal in redefining luxury living in the real estate sector. As a company, we remain committed to developing projects that cater to this evolving demand, ensuring our offerings exceed the expectations of our discerning clients.
Q2: As our finance minister recently announced the Interim Budget 2024, What is your perspective on its impact on India’s real estate?
The 2024 Interim Budget represents a significant milestone in advancing India’s real estate sector. It focuses on infrastructure and connectivity improvements, which are crucial for expanding real estate development, especially in tier 2 and 3 cities. This budget notably supports the middle class’s transition from renting to homeownership, revitalizing many urban areas. The 11.1% increase in Capex outlay indicates a strong future for diverse real estate projects, bolstered by infrastructural enhancements.
Q3: Gurugram witnessed substantial growth in real estate in 2023. As a prominent developer in the region, what factors do you attribute to this surge?
The remarkable growth in Gurugram’s real estate market in 2023 is a result of several converging strategic factors. This growth is not just a testament to the region’s potential but also to the foresight in its development. Firstly, the presence of Fortune 500 companies in Gurugram has been a pivotal factor. This presence has cultivated a cosmopolitan culture and a robust economic environment, attracting professionals and businesses alike. The influx of workforce has spurred demand for both residential and commercial properties.
Significantly, Gurugram saw an impressive 20% year-on-year price appreciation in areas like Dwarka Expressway, Golf Course Extension, and New Gurgaon. This appreciation reflects the growing demand and confidence in the region’s real estate market. The infrastructure development, particularly along the Golf Course Extension Road, Delhi Mumbai Expressway and Dwarka Expressway has played a crucial role. This development has transformed the area into a central hub, integrating luxury residential projects with offices, retail, and entertainment facilities, offering a holistic lifestyle to residents.
Furthermore, the rental market in Gurugram has mirrored this success. We observed an 18% increase in luxury home rentals from 2019 to 2022, especially on the Golf Course Extension. This increase signifies the region’s growing appeal as a residential choice for high-income groups. The region’s robust social infrastructure and seamless connectivity have further cemented its status as a premier real estate destination in India. These elements combined have created an environment conducive to real estate growth, attracting a diverse range of buyers and investors.
Q4: In an era where technology is rapidly transforming industries, how is Smartworld Developers leveraging technological advancements to enhance its projects and stay ahead in the market?
At Smartworld Developers, we are at the forefront of embracing technological innovations within the real estate sector. Our commitment to technology is not just a strategy but a mindset that permeates through every aspect of our operations and product offerings. In the realm of construction, we are utilizing advanced Aluminium shuttering technology. This method not only reduces human error but also ensures the construction of faster, weather-proof buildings with higher seismic resistance. This technology is crucial in delivering high-quality, durable homes to our customers.
Moreover, our projects are infused with state-of-the-art smart home technologies. A prime example of our commitment to smart technology is our collaboration with Schneider Electric in our recently launched project, The Edition, located in Sector 66, Gurugram. In this project, homes priced between ₹6-15 crore are equipped with advanced smart solutions, epitomizing the luxury that modern technology can bring to real estate.
It’s important to note that our adoption of technology is not just limited to high-end projects. We believe in democratizing access to technology in real estate. A decade ago, integrating such technologies was expensive and challenging, particularly in existing houses. However, today, homes are increasingly electronically driven, and we see automation as an essential commodity in the future. Regardless of the price segment, be it ₹1 crore homes or luxury projects, we are committed to providing smart solutions.
Q5: What is the current status and progress of all ongoing projects undertaken by Smartworld Developers?
Since our inception in 2021, Smartworld Developers has been a catalyst in reshaping Gurugram’s real estate landscape. Our journey began with two ambitious residential projects: Smartworld Orchard and Smartworld GEMS. These projects, offering luxurious 2 and 3 BHK apartments, have set new benchmarks in the industry. Currently, both projects are in advanced stages of construction, and we are gearing up to begin the handover process to our esteemed customers.
Our commitment to luxury and innovation is further exemplified by our premium high-rise project, One Dxp, located at Dwarka Expressway. The exceptional demand for the project’s 2.5 BHK units, which sold out within just three days of launch, is a testament to our market strength. The growing anticipation for the launch of its Phase 2 later this year is a clear indication of the project’s success and appeal.
Additionally, we have recently unveiled ‘Smartworld The Edition‘, a project that is not just a development but a significant milestone for us. Situated in the prime sector of Golf Course Extension Road in Gurugram and sprawling over 10+ acres with a saleable area of 3 million sq. ft, this luxury project is a testament to our commitment to excellence. Conceptualized as a G+42 floor skyscraper, it promises to be an iconic addition to Gurugram’s skyline.
Source : ET News