 "S K Sayal")
Bharti Realty, of Bharti Enterprises, is planning to launch its first residential project in Surajkund (Faridabad) as a vertical smart city. The smartphone will be the key to the apartment. The company is targeting two to three residential and commercial projects every year. S K Sayal, chief executive, Bharti Realty, tells Mansi Taneja confidence in the market in developers right now is zero. The entry of corporate houses is likely to change things, he says. Excerpts:
You have entered the residential realty sector during a slowdown. Why?
The real estate segment in Bharti started with meeting in-house requirements - Airtel Center in Gurgaon, headquarters in Vasant Kunj, and other developments. Bharti Realty owns all these rental-yielding assets, so residential real estate became a natural offshoot and we decided to diversify into this segment. We will be choosy in location and selecting our partners. The market has forced people with land banks to look for players like us.
How much investment has been earmarked for this foray and when will you come up with your first residential project?
We have identified the location - Surajkund in Faridabad. It will be a joint venture model with the land owner. We are in the planning process with global designing firms. It will be a vertical smart city over 52 acres, with over five-million-square-feet (sq ft) development area. It will have more than 2,000 units. The project will have all the facilities in the vicinity - educational, medical and commercial. We will be out in the market in six to eight months. It will be a premium project in the mid segment. Investment will be project-specific and we have a backing of a strong corporate to support us. Bharti will come with products at competitive pricing.
How would you define your smart city? And at what price would the units be sold?
In an Indian context, a smart city would be different. We are undertaking a research for it. It will be a concept by an international architect who has already been involved in the making of a smart city globally. The smartphone will be your key to your apartment...Around 10 apps would run your house. In a smart city, houses are going to be compact. We are talking to people, brokers, and other related persons to identify the ticket size and the price tag. Surajkund is equidistant from Noida, Delhi, and Gurgaon.
What is the strategy for the next five years? How many projects would you launch in the commercial and residential spaces?
We have around five million sq ft, of which some are under construction. We will multiply our rental portfolio in five years. Also, a retail office space development project is on the anvil in six to eight months in Gurgaon - Worldmark. We are creating a brand of Worldmark and we will take this to all our commercial developments. The Aerocity Worldmark will be running soon. The plan is to come up with two to three projects every year in both the segments. We will purchase land for commercial, as we want to own our rental assets, while we will go for the joint venture model in the residential space.
When do you see a revival in this segment? Are you in favour of a regulator for the sector?
The confidence in the market is zero towards typical developers. Market is down, nothing is selling, but I believe with the business getting into the hands of corporates, trust and confidence will come. We have a strong backing of the Bharti Group. We are more regulated internally as a corporate. We have a commitment to timely delivery. We don't work on high margins like other developers. We launch projects after taking approvals. This will ensure timely delivery.
Do you see any scope for correction in prices in the residential market?
We are not realistic in prices. Some correction has happened but prices have to come back to normal. Another 20-30 per cent reduction in prices will bring back the demand in the sector.
One has to deliver product at a right price. Entry of corporates will change the game of the business and it will attain the status of an industry. It has to be a region specific businsess.We belong to North, so will focus on Haryana, Punjab and Delhi-NCR.
