The demand for affordable housing remains robust, driven by urbanization and the need for accessible living spaces for the middle and lower-income segments, Says Doshi
The real estate market in India has witnessed a robust uptick in the past few years. However, this demand has been limited to luxury housing. As per a report by CBRE South Asia, the luxury housing space saw a 27 per cent surge in sales year-on-year in the first half of 2024 across 4 cities.
As market standards rise, prices might experience upward pressure as well. Especially at a point where the affordable housing segment is already under strain. In an exclusive interview with Outlook Business, Divyesh Doshi, Director, Kinjal Group, talks about how a dual approach can drive holistic growth in the real estate sector.
You've been in the real estate market for over 30 years. How has Kinjal Group changed and evolved with the market?
Kinjal group boasts a rich history dating back to its founding in 1994. What began as a humble proprietorship has evolved into a dynamic construction and real estate conglomerate, renowned for its commitment to quality, integrity, and timely project delivery. With a portfolio encompassing over 72 successful projects and 300+ professionals. We have grown into a robust organization with a team of, leveraging cutting-edge technology and forming strategic partnerships with industry leaders to deliver exceptional results.
There's been a big rise in luxury housing in India lately. Do you think this trend will affect the overall market, especially pricing (in terms of affordable housing)?
The rise in luxury housing in India is indicative of a growing affluent class and increasing demand for high-end living spaces. According to an industry report cities like Mumbai and Delhi have seen an 11 per cent hike in luxury housing prices. While this trend elevates the overall market standards, it also exerts upward pressure on prices. However, it is essential for the market to maintain a balance by ensuring that affordable housing options remain accessible to a broader segment of the population. This dual approach can drive holistic growth in the real estate sector.
How has the demand for affordable housing been in the overall real estate market?
The demand for affordable housing remains robust, driven by urbanization and the need for accessible living spaces for the middle and lower-income segments. Government initiatives and policies aimed at promoting affordable housing have further fuelled this demand, making it a significant focus area for developers and policymakers alike.
How has Kinjal Group performed in the previous fiscal year?
Kinjal Group has demonstrated strong performance in the previous fiscal year. In the 2019-20 fiscal year, our turnover was Rs 74 crore. By 2022-23, we successfully doubled this figure, reaching Rs 144 crore. As of today, we have already achieved a turnover of Rs 207 crore. This remarkable growth is a testament to the dedication of our team and the continued trust of our clients
What are your expectations from the upcoming Union Budget under the NDA government, that could impact India's growing real estate market?
We anticipate the upcoming Union Budget to introduce policies that further stimulate growth in the real estate sector. Key expectations include enhanced tax incentives for homebuyers, increased allocation for infrastructure development, and streamlined approval processes for real estate projects. Additionally, we hope for measures that boost affordable housing, encourage sustainable building practices, and provide liquidity support to developers, all of which will collectively drive the market forward.