Gurgaon, April 28 (IANS): On the one hand, the demand for residential and commercial properties is constantly increasing, and on the other hand, over the past year, the cost of construction has also increased by 10-12%. The cost of materials such as steel and cement increased by more than 20%, copper by 40% and aluminum by 44%. Construction material accounts for 2/3 of the total cost of construction and any upward variation in costs reduces developers’ margins or forces them to raise prices. Cost fluctuation is most visible in the luxury segment.
Pankaj Bansal, Director of M3M India, one of the most prominent developers in the luxury space in India, says: “There is no doubt that businesses across the world have slowed down since the outbreak of the Covid pandemic. But the year 2022 has started with renewed hope and increased demand in the real estate sector.Although commodity prices are on a steady upward trend, demand is also increasing for residential and commercial properties. Another way to somehow stabilize this fluctuation and manage costs is through the timely delivery of projects.Delivery delays usually increase costs because, in addition to raw material costs, the costs As the strength of M3M India lies in the timely delivery of projects, we are in a better position to manage these price fluctuations.
“M3M India operates on an integrated business model or we call it an end-to-end integrated business model, which means, from land ownership to monetization, licensing, launching, marketing, delivery and after-sales; the complete value chain is managed directly by M3M India. Direct management of these factors also saves time, costs and projects are better integrated in terms of installations and follow-up”, adds Pankaj Bansal.
True to its reputation for fast delivery of all residential and commercial projects, the Company had launched 27 projects before 2018 and 25 projects have already been delivered. The construction of two projects, the iconic Trump Towers and M3M Heights, is in full swing and these projects are expected to be delivered soon. These delivered projects represent approximately 4 million square feet of retail space and 20 million square feet of total space. Customer confidence is reflected in M3M India bookings and sales. M3M Capital recorded Rs. 800 crore booking in just 3 days. Another M3M India project, M3M Soulitude, had sold over 1000 units in the very first week of its launch. The company had also recorded sales of Rs 1,000 crore in the first week itself under the M3M Soulitude project.
To its credit, the five new projects launched by M3M India after 2018, including M3M Marina, M3M Prive and M3M Natura, have already been successfully delivered to customers. Construction is in full swing in 5 newly launched projects including M3M Soulitude, M3M Capital and M3M Atrium57.
The M3M Capital project is part of M3M India’s Vision 3.0. This is a new high end golf style residential project in the 113 Gurugram area, directly on the Dwarka Highway. Initially, 5 residential towers of M3M Capital, being built on approximately 16 acres with 644 apartments, were opened for booking, comprising 294 2.5-bedroom apartments and 350 3.5-bedroom apartments. The project is close to Aerocity and Delhi International Airport, and is part of a larger vision for Delhi Smart City Airport.
Pankaj Bansal says, “M3M India has a bank of over 2200 acres of land plots which has given the company a definite edge. debt. Gurugram also has the third highest per capita income in India and has contributed significantly to the Indian entrepreneurial ecosystem. Not just startups and unicorns, even NRIs are aggressively driving the real estate market in India. Today Gurugram is home to over 250 Fortune-500 companies and over 1500 Delhi NCR has also replaced Bangalore as India’s startup capital so we are seeing a steady growing demand for residential and commercial space and the advantage would remain with the developers who would deliver the projects on time.
The real estate market is poised to boom in the coming years, with startups looking to lease around 30 million square feet of space between 2022 and 2024, the majority of which will be commercial. Demand for residential housing is also expected to increase by 8-10%. On the other hand, FDI in real estate also jumped three times between 2017 and 2021, reaching around 82%. India’s young population is also on the move, with 66% of young Indians under the age of 35 emerging as young millennial home loan borrowers. The cumulative active home loan base of these borrowers has grown steadily over the past 3 years at a CAGR of 3.5%. Timely possession, corporate governance, transparency, sustainability and cost competitiveness will play a decisive role in real estate in the years to come, and it seems that the end-to-end integrated business model in the real estate sector will be a game-changer for clients and investors. .