Paramount Group In An Interview
'Infra Boom Will Impact Prices': Ashwini Prakash, Executive Dir. of Paramount Group In An Interview
With an investment plan of Rs 300-350 crore over the next one year, Paramount is planning to acquire land banks for developing malls and IT parks. Executive director of the company, Ashwini Prakash spoke to Our correspondent. He said that the gap between demand and supply still remains large. Housing is the basic need. He added that this will compel people to buy even at stable rates. Excerpts from the conversation:
During a period when developers are witnessing correction, what is your strategy of selling your project? Have you also brought down your prices?
The term which you have put as "correction" in my opinion is "wait and watch" situation for customers who are selective and conscious when deciding about the property. In the present scenario we have started broadening our customer base and targeting different segments of customers through the media, by educating them on the quality and facilities being provided by us and ultimately telling them that we give value for their money.
Our rates are affordable and reflect the quality and facilities provided by us. Hence, there is no scope of reducing the rates. However we would be giving some festival offers to our customers during coming festival season.
Among the suburbs of NCR, Ghaziabad offers affordable housing options. What according to you is the average rate for a residential apartment in the prime areas of the city: Vaishali, Indirapuram, Vasundhara, National Highway 24 and Raj Nagar Extension?
The residential rates in Ghaziabad are still lower as compared to other cities in India, the average rate for Vaishali is Rs 3,200 per sq ft. Indrapuram offers apartments in the range of Rs 2,800 per sq ft. Vasundhara, NH 24 and Raj Nagar Extension areas are even lower this and offer in the rate band of Rs 2,500 per sq ft, Rs 2,400 per sq ft and Rs 1,800 per sq ft.
In which area in these, should a buyer look while purchasing a condominium for himself? In terms of pricing, which is the best possible option for maximum appreciation?
The importance of any area around Delhi depends on its connectivity to Delhi and on traveling time to Delhi from that particular area. As far as the appreciation of any area around Delhi is concerned it revolves around the above points. If we see in this light, the properties in the area of Vaishali, Indrapuram and Crossing Republic at NH-24 are a good buy at present. The Metro Rail connectivity has already been planned for these areas. The work is already in progress on ITO-Vaishali stretch.
NH-24 is proposed to be an eight lane highway before common wealth games 2010; this will definitely improve the connectivity of these areas to Delhi.
On NH-24 the Crossing Republic has its own locational advantage -- its one side is right on NH-24 and other two sides are connected to Noida and Greater Noida.
What are your future plans? Which are the other cities you are looking at for another project?
Besides our on going projects, we plan to venture into the development of malls, IT parks and townships. The areas in which we are planning our projects would be tier II and tier III cities and may be some Metros.
How much are you going to invest in near future, say in next one year in various projects?
We would be investing about Rs 300-350 crore in our various on going projects in next one year.
Experts have predicted that the correction phase will continue to for around next 12 months. What is your opinion? Simultaneously, will the bank rates decrease?
As I see it, house is a necessity and still a big gap exist between the demand and supply in the residential segment of realty market. Considering the fact, market will definitely improve. We can expect some movement in the coming festival season too.
Regarding the bank interest rates, yes it does effect the decision making of prospective buyers. Looking at the present inflation trends, I feel that it might start go down. If that happens we may expect an announcement by the bankers regarding the interest rate reduction.
Give details of your land bank and project, the rates at which you are selling?
Paramount Group has already completed about twelve (12) residential and commercial projects in total. We have an integrated township at Saharanpur spread in an area of appox.100 acres. We have land in Crossing Republic at NH-24, Ghaziabad and land for IT Park in NCR Region.
At present properties are available for sale is Paramount Orchid, a project at Crossing Republic, NH-24, Ghaziabad. Here we are offering luxury apartments at an affordable basic price of Rs 2,400 per sq ft under the installments plan.
Completion of infrastructure projects in Ghaziabad would impact the prices in a great way. Can you specify some of such projects that will impact the real estate markets of different areas?
As I have already mentioned in view of the Common Wealth Games-2010 lot of infrastructure development is going on in the areas surrounding Delhi. The completion of these projects would definitely improve the connectivity of Delhi to these areas the traveling time from these areas to Delhi would reduce substantially. To name a few widening of NH-24 from four lanes to eight lanes, development and construction of flyovers on various highways, extention of Metro Rail Route to nearby areas such as Noida ,Ghaziabad and Gurgaon.
With an investment plan of Rs 300-350 crore over the next one year, Paramount is planning to acquire land banks for developing malls and IT parks. Executive director of the company, Ashwini Prakash spoke to Our correspondent. He said that the gap between demand and supply still remains large. Housing is the basic need. He added that this will compel people to buy even at stable rates. Excerpts from the conversation:
During a period when developers are witnessing correction, what is your strategy of selling your project? Have you also brought down your prices?
The term which you have put as "correction" in my opinion is "wait and watch" situation for customers who are selective and conscious when deciding about the property. In the present scenario we have started broadening our customer base and targeting different segments of customers through the media, by educating them on the quality and facilities being provided by us and ultimately telling them that we give value for their money.
Our rates are affordable and reflect the quality and facilities provided by us. Hence, there is no scope of reducing the rates. However we would be giving some festival offers to our customers during coming festival season.
Among the suburbs of NCR, Ghaziabad offers affordable housing options. What according to you is the average rate for a residential apartment in the prime areas of the city: Vaishali, Indirapuram, Vasundhara, National Highway 24 and Raj Nagar Extension?
The residential rates in Ghaziabad are still lower as compared to other cities in India, the average rate for Vaishali is Rs 3,200 per sq ft. Indrapuram offers apartments in the range of Rs 2,800 per sq ft. Vasundhara, NH 24 and Raj Nagar Extension areas are even lower this and offer in the rate band of Rs 2,500 per sq ft, Rs 2,400 per sq ft and Rs 1,800 per sq ft.
In which area in these, should a buyer look while purchasing a condominium for himself? In terms of pricing, which is the best possible option for maximum appreciation?
The importance of any area around Delhi depends on its connectivity to Delhi and on traveling time to Delhi from that particular area. As far as the appreciation of any area around Delhi is concerned it revolves around the above points. If we see in this light, the properties in the area of Vaishali, Indrapuram and Crossing Republic at NH-24 are a good buy at present. The Metro Rail connectivity has already been planned for these areas. The work is already in progress on ITO-Vaishali stretch.
NH-24 is proposed to be an eight lane highway before common wealth games 2010; this will definitely improve the connectivity of these areas to Delhi.
On NH-24 the Crossing Republic has its own locational advantage -- its one side is right on NH-24 and other two sides are connected to Noida and Greater Noida.
What are your future plans? Which are the other cities you are looking at for another project?
Besides our on going projects, we plan to venture into the development of malls, IT parks and townships. The areas in which we are planning our projects would be tier II and tier III cities and may be some Metros.
How much are you going to invest in near future, say in next one year in various projects?
We would be investing about Rs 300-350 crore in our various on going projects in next one year.
Experts have predicted that the correction phase will continue to for around next 12 months. What is your opinion? Simultaneously, will the bank rates decrease?
As I see it, house is a necessity and still a big gap exist between the demand and supply in the residential segment of realty market. Considering the fact, market will definitely improve. We can expect some movement in the coming festival season too.
Regarding the bank interest rates, yes it does effect the decision making of prospective buyers. Looking at the present inflation trends, I feel that it might start go down. If that happens we may expect an announcement by the bankers regarding the interest rate reduction.
Give details of your land bank and project, the rates at which you are selling?
Paramount Group has already completed about twelve (12) residential and commercial projects in total. We have an integrated township at Saharanpur spread in an area of appox.100 acres. We have land in Crossing Republic at NH-24, Ghaziabad and land for IT Park in NCR Region.
At present properties are available for sale is Paramount Orchid, a project at Crossing Republic, NH-24, Ghaziabad. Here we are offering luxury apartments at an affordable basic price of Rs 2,400 per sq ft under the installments plan.
Completion of infrastructure projects in Ghaziabad would impact the prices in a great way. Can you specify some of such projects that will impact the real estate markets of different areas?
As I have already mentioned in view of the Common Wealth Games-2010 lot of infrastructure development is going on in the areas surrounding Delhi. The completion of these projects would definitely improve the connectivity of Delhi to these areas the traveling time from these areas to Delhi would reduce substantially. To name a few widening of NH-24 from four lanes to eight lanes, development and construction of flyovers on various highways, extention of Metro Rail Route to nearby areas such as Noida ,Ghaziabad and Gurgaon.