Replying to Yash Ved of IIFL, Gaurav Jain says "We have signed a MoU with Government of Haryana to develop nearly 333 acre land in Sonepat and Kurukshetra over next few years in a time bound manner."
What outlook do you see for the real estate industry?
India is surging ahead and real estate industry is also witnessing a paradigm shift. We will soon see a stable, industrialized housing market, fully compliant and making “Housing for All" a reality. We are in an era like it happened in automobile industry post Maruti Car in India. Cars are available in plenty, any and every model suiting all pockets, all of an acceptable quality with no black market. The real estate business is in a consolidation mode, companies with strong professional background will be able to deliver quality product at correct price. This increased competition will also, after RERA bill is in force, weed out the companies which lack long term vision, poor management and loose systems and processes.
Brief us about your current and upcoming projects?
With an enterprising spirit and ability to discern future trends, JRPL has undertaken two landmark integrated housing projects Jindal Global City, Sonepat and Kurukshetra. While Jindal Global City, Sonepat is the leisure destination spread over 650 acres and offers affordable lifestyle very close to Delhi, Jindal Global City, Kurukshetra is the ultimate lifestyle destination spread over 89 acres and offers a holistic and luxurious lifestyle experience.
Brief us about your MOU with Haryana Govt?
We have signed a MoU with Government of Haryana to develop nearly 333 acre land in Sonepat and Kurukshetra over next few years in a time bound manner. This also includes a commercial project spread over 3.28 acre in Sonepat. Government of Haryana will actively support these projects in obtaining various clearances and approvals. The MoU was signed between Mr. Arun Gupta, Director General Town and Country Planning Department, Government of Haryana and Mr. Gaurav Jain, Managing Director and Chief Executive Officer, Jindal Realty Pvt Ltd in presence of Haryana Chief Minister, Manohar Lal Khattar and other dignitaries at the ‘Happening Haryana’ summit held at Gurgaon. These projects would be taking off in the financial year of 2016-17. Both JRPL and Haryana Government are now acting closely to make this project success.
What are your investment plans in Haryana?
Haryana has always been at the forefront in industrial and real estate development and have provided superior infrastructure to companies especially in the real estate sector. JRPL is primarily concentrating in Haryana. We believe that the state has lot of investment opportunities in the field of real estate sector. Currently, we have just announced Rs 1800 crore investment in the state which will further go up as per the need.
What is your take on Govt increase ready reckoner rates in Mumbai?
Ready-reckoner rates are assessments of property value by the state government on the basis of which stamp duty and registration charges are paid. The government usually revises these rates every year. This upward revision in ready-reckoner rates would result in homebuyers paying more stamp duty. Apart from this, developers also usually pass on increases in project expenditure to consumers. As we are not operating in Mumbai, the actual impact will be difficult for us to asses.
Your view on RBI Monetary policy?
The Reserve Bank of India has cut its key interest rate in its first monetary policy review, for financial year 2016-17. The repo rate, the rate at which RBI lends money to commercial banks, now stands at 6.5%.This implies a reduction in the rate, helps banks borrow money at a cheaper rate and vice versa. Therefore, when the interest rate is low, lending by banking system becomes a bit cheaper, leading to a fall in EMI, thereby providing a boost to industry and economy in overall.Naturally, a fall in the interest rate prompts one to save less and spend more. Due to low interest rate, loans, particularly home loans will see a rise and this benefits the real estate market.
What is your mix in terms of residential and commercial?
Sonepat Global City, spread over 650 acres has residential and commercial land uses. Of this, 214 acres land is licensed and is under development. Our current development comprises of a balanced mix of plots, villas and floors spread over all segments. We also have institutional land comprising of schools, club, dispensary etc. We are now developing our first commercial spread over 3.28 acres of commercial development, which will cater to Sonepat residents, university students and has been designed keeping in view their daily as well as leisure needs. In Kurukshetra, it is purely residential.
What is your total area under development?
Sonepat Global City is a mega township spread over 650 acres and barely 2 kilometers from KMP Expressway, KGP Expressway & NH1 intersection. And, Kurukshetra Global City is a mega township spread over 89 acres and located just off India's prominent National Highway 1.