Atul Modak, City Head of Kohinoor Group of companies says they are bullish on the Mumbai realty market and have a couple of residential and commercial launches coming up this year. In an interview with Ravi Sinha, he wondered that in a market where input costs are going sky high, how can the market go downwards? Excerpts of the interview:
Q: How do you see Mumbai realty market shaping up in the year 2011?
I am very optimistic about Mumbai’s realty market and it will grow further. Lot of Mumbai’s outskirts being explored for residential purpose and town planning with optimum infrastructure will facilitate good growth.
Q: JLLM, Fitch and Cushman & Wakefiled predict price correction in the year. Your take on that.
Price is always dependent on demand and supply scenario. With construction cost rising up including raw materials like sand, cement and labour I really wonder whether there will be any major correction. However, in case of some projects where prices being jacked up by builders, we may see prices coming to more realistic level.
Q: Do you think there are pockets that will see correction, or there will be a general slowdown in the city and outskirts?
In case of some locations like Navi Mumbai and suburbs on outskirt of Mumbai we may see some correction in already overheated market. Prices will definitely not fall steeply but it will substantially settle down at steady price.
Q: Do you agree with the view that Mumbai realty market is slated for oversupply this year and the fierce competition will turn the market into buyers market?
In some pockets in Navi Mumbai, outskirts of Thane we may see oversupply resulting into pressure on existing pricing.
Q: Any launches that you have planned for this year?
Yes. We have a couple of residential & commercial developments coming up this year.
Q: Any corrective measures that you have planned/you will think of in the case of market correction?
As we follow more realistic pricing policy and believe in giving value for money for our customers, we do not foresee any effect of any market correction, if any.
Q: Any learning curve coming out of the market crash in the last 2-3 years?
As always we do, give little more than what customers want and you will sail through any situations.
