In real estate, greed has not really overtaken fear: Anuj Puri, Anarock

In real estate, greed has not really overtaken fear: Anuj Puri, Anarock

Roger Pettingell Sarasota Real Estate

“I do feel that the buyer is willing to pay a higher price at this moment in time because over the last four-five years real estate prices had not run up whilst the salaries and the incomes had gone up and that is what the catch-up play is happening today with the real estate prices but over the next three to five years, prices will go up, but it will be in line with inflation ” saysAnuj Puri
, Chairman,
ANAROCK Group

You are seeing builders from south India go to Mumbai, builders from Mumbai are coming north to Gurgaon, New Delhi. That seems to be the trend. Prices are going up even though builders are red flagging rising input costs. Having said that, your latest report also talks about a moderation when it comes to launches, have the builders learnt from the last property super cycle not to expand too fast?


Clearly, we had seen good quality developers really eating the pie. There is a huge amount of consolidation that has taken place and when I say good quality it is largely the listed or the unlisted who have very good brands and they are the ones who are really expanding.

I must clarify that not every stakeholder in real estate is benefiting from this bull run. It is just the good quality developers like Prestige and other listed developers who will continue to see their sales doing exceptionally well. But when you look at the sales of B and C grade developers, it has not really picked up and that is where the consolidation has taken place which I think is across all sectors post Covid.

As far as expansion is concerned, we have started to see a lot of the Bangalore developers come into Mumbai and likewise Mumbai developers have started to enter Bangalore and north because the space has become available as the B and C grade developers have exited those markets and that is what the advantage is being taken by good quality developers.

There was always a fear and greed factor. Developers do not necessarily want to increase the price; they only want to push the input cost increase to the consumer and hence very much want the sales momentum to continue.

We want the cash flow to come in. We want our debt positions to go down. We do not want to kill the golden goose in the previous being passed on to the consumer.

If you have to talk about a three-year trend, do you see a three-year bull market in real estate prices irrespective of what the price of steel, cement are? Do you see investors coming back into the real estate market? Right now, it is the first time buyers or need based purchases which are on. When will the cycle turn on that front?


Both are very interesting questions. As far as the investors are concerned, I do not think that we are going to see those guys come in hurry. Long-term investors may still come in, but instead of speculators which we had seen in the NCR market way back, now investors are buying houses today because their kids are going to grow or the family is going to expand and hence, they need it in three, four, five years’ time. Otherwise, over the next three years, I am not seeing any great investor come into the real estate market.

It will largely be led by the end users. As far as the prices are concerned, prices will continue to increase in the same correlation as the inflation. I was just mentioning earlier that I have seen the developers behave beautifully between greed and fear.

The greed has not really overtaken the fear. They have been very fearful. They have focussed on cash flows, on momentum of sale, on reducing their debt. I do not think that you are going to see an immediate increase in the price.

I do feel that the buyer is willing to pay a higher price at this moment in time because over the last four-five years, real estate prices had not run up whilst the salaries and the incomes had gone up and that is what the catch-up play is happening today with the real estate prices, but over the next three to five years, I feel the prices will go up, but it will be in line with inflation and that is another reason why investors may not really come big time into this market because they would want to play a role where they are beating the inflation not with the inflation.


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