The real estate market in Bangalore has always been unique. A city driven primarily by IT/ITeS industries, the city's residential demand is driven primarily by end-users. Post-COVID dispensation, the city saw steady growth in housing sales as well.
What is your expansion strategy for the company?
We plan to launch in a new city next year. From a customer need as well as a data point of view, we can replicate our success in Bengaluru in most other large cities in India.
What are your views on the labor shortage and the recent home price rise?
Our business isn't too labor intensive since we don't build new buildings. While there were issues in the labor market in the first half of last year, we aren't seeing many problems now.
One of the major things we have witnessed in Bengaluru over the last year is that housing demand is being led by the end buyer. This market is less finicky to price changes since it's a need-based purchase. We don't see any short-term drop in demand. The unsold inventory by builders is also at one of the lowest levels in the last few years indicating that demand is organic and here to stay.
Are there any repercussions of global geo-political scenario for India?
A slowdown in growth will affect real estate to the level that the money supply could be lower. We could also see demand soften if there is a large-scale loss of jobs. However, we have seen in the past that real estate prices in India tend to stay firm even if there are a lesser number of transactions during a recessionary period.
Indian real estate is also fairly insulated. The last global recession was in 2008 when we saw home prices in global markets plummet. However, there was no such thing seen in India.
Would you like to know what your preferences are when it comes to purchasing properties from other people?
Answers - Our criteria for buying properties are 3 fold.
- We look for properties that are legally clear with all required sanctions.
- Properties that we can effectively price.
- Homes that have a predictable demand.
This essentially boils down to apartment units in societies with over 60 units and priced between 60L and 2.5Cr in Bangalore.
What are your plans for moving your business from homes to office spaces in the future?
Answers - The home selling problem is large enough. We don't have any immediate plans to move to the commercial space segment.
