Market decline

How These 5 Indian Real Estate Companies Are Innovating Amid Market Decline Due To COVID-19

When the COVID-19 pandemic began to spread in India, it exacerbated the problems plaguing the country’s real estate sector. The sharp decline in buyer interest and the number of property visits and the increase in the number of unsold inventories have exacerbated existing problems in the sector, such as the increase in NPAs in construction finance, an effect high leverage and tight liquidity.

Real estate companies in India have lost projects, ongoing projects have been put on hold, labor is hard to come by and cash flow is badly affected.

Despite this, many of them do not wait for the market trend to change; they are finding new ways to keep their operations running smoothly and their customers’ satisfaction.

Given the impact of the COVID-19 pandemic, SMBShistory lists five Indian real estate and construction companies innovating in the midst of the crisis:

Tushar Mittal, Founder and CEO, Studiokon Ventures

In 2009, Tushar Mittal started an interior solutions company Studiokon Ventures (SKV) with just 12,000 rupees which he saved during his short stint in the real estate company DLF. He took no external funding over the next 11 years and turned SKV into a Rs 200 crore turnover company with over 250 employees.

“We had no investor and no external funding. We have supported each other every step of the way. Today we have built turnkey interior solutions for over 200 offices for clients such as Amazon, Google, ZS, British Council, Adidas, PepsiCo, NTT, DLF, Tractebel, etc, ”he says.

SKV is keen to launch its own line of furniture and is also looking to become a technology-driven construction giant in the interior space. However, SKV’s cash flow was affected due to COVID-19, which put a dent in its plans.

As SKV now needs more manpower to fill the skills gap, its projects have been negatively affected. The sales of its office fittings largely depend on demand from businesses that must be doing well.

“While cost pressures have certainly increased for us, we are working on strategies to overcome these issues and survive the COVID-19 crisis. We are trying to develop asset-like models, and with greater acceptance of the technology in the post-pandemic era, we are excited to see the opportunities it will bring, ”said Tushar.

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Gulshan Nagpal, Founder and Managing Director, Gulshan Homz

After building a house for his family, Gulshan Nagpal was inspired to start a reliable and transparent real estate business. He started Gulshan Homz in Delhi in 1989 and started building independent houses in East Delhi. The focus then shifted to building high quality multiple housing projects in the Delhi-NCR region.

Now, 31 years after its inception, the company has carved out a niche in high-end luxury residential projects, she says, adding that in FY20, it sold 522 units in its three projects – Gulshan Ikebana, Gulshan Botnia and Gulshan. Bellina in Noida.

This three-decade-old real estate company has not been spared COVID-19. The pandemic has made him come back to the drawing board and devise effective strategies to deal with the situation.

To sell its spaces during these periods, Gulshan Homz contacts customers digitally and offers them virtual tours of the sites. Company director Yukti Nagpal believes this is the only way to stay in touch with existing and target customers amid the current COVID-19 crisis.

“Digitization and virtual tours have been launched by real estate agents, which has helped them reach their target audience and close substantial sales even during the foreclosure,” she said, adding that the company is keen to venture into real estate for the commercial and hotel segments in the post-pandemic era. It aims to build more shopping centers, hotels and offices, and also to enter several other real estate segments.

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Ram Raheja, Director, S Raheja Realty

Started in 2003, S Raheja Realty’s The legacy goes back to Girdaridas Raheja and his brothers, who came from Karachi to Mumbai and started a real estate business in 1955. Today, S Raheja Realty is a leading developer of luxury housing, redevelopment, affordable housing, corporate development and second homes.

S Raheja Realty has developed many luxury housing projects, mainly in Mumbai. Over the past decade, she ventured into the affordable housing market in mini-metros and Tier II cities.

A well-diversified real estate company like S Raheja Realty claims that while they haven’t faced manpower or project issues, they’ve had to find a way to keep their teams and departments connected in the middle. of the COVID-19 crisis. She started leveraging various digital platforms to make sure and tapped into social media to connect with existing and potential customers.

“Social media is the future of marketing, as social distancing will continue to be the norm for some time, even after the lockdown,” said company director Ram Raheja. While Ram may be thinking of business in the post-coronavirus era, he remains aware that even before the coronavirus pandemic, the Indian real estate market was going through a rough patch.

Despite an impending price correction and the ongoing policy challenges facing Mumbai property developers, S Raheja’s overall vision for approaching the luxury property market will remain the same. In the near future, Ram and his team intend to continue to focus on Mumbai and “to establish a statement for a quality lifestyle”.

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Yogesh Jaiswal, Founder, Le Classique Realty

It was Yogesh Jaiswalthe desire to create a reliable and professional channel to connect real estate developers with buyers that inspired him to get started Real Estate The Classic in Bombay in 2019. The company acts as a distribution partner that helps project developers sell their properties wholesale.

Today, the company’s turnover is between Rs 18 crore and Rs 20 crore. He has already sold real estate worth over Rs 100 crore, Yogesh claims.

Le Classique currently has over 350 real estate units worth Rs 700 crore in its inventory and hopes to sell them all over the next 18 months. With sales declining due to the pandemic, this is easier said than done.

“Public sentiment is simply not sustainable for the new purchases, and there are concerns that delivery of the project may be postponed. For us, intensive calls and maintaining regular contact with our customers have now become a daily norm. We make sure that every development of our projects is regularly updated for our clients, ”he says.

But it was not an easy decision. Yogesh said he was in a dilemma: to put the staff on leave for now or to continue. “We wondered if we would be able to produce results even in this situation. Our team was afraid to see the job losses and wage cuts going on in companies. So we decided to continue and stay with our team. We have worked tirelessly to generate leads and find interested customers, and we have pushed our customers towards online payments, ”he says.

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Aayush Chaudhary, Founder and Principal Architect, ACad Studio

Seeking to solve the problem of mismanagement in construction, Aayush Chaudhary teamed up with his experienced dad Ravi Chaudhary and started Acad Studio in Gurugram in 2018. The construction consulting firm was launched with Rs 5 lakh initial investment. The father-son duo began managing small-scale construction projects using Building Information Modeling (BIM) technology.

The company now claims to have recorded a turnover of 2 crore rupees last year. Some of his clients include OYO, Carrier Midea, individuals who own penthouses or apartments in luxury apartments and landowners in Gurugram.

When the pandemic crippled the Indian economy, all of ACad’s existing projects were put on hold and its upcoming projects were scrapped. The company decided to use the downtime to focus on its existing customers and build strong relationships with them.

“We started to improve the designs of existing projects and give customers better options. The market was at a standstill and acquiring new customers was difficult. We also faced a shortage of local labor as most of the workers returned to their hometowns. This increased our construction costs and forced us to rework our calculations, ”he adds.

Despite this, Aayush remains confident in his plan to expand into larger scale projects such as group housing, commercial construction and urban development. “There are a lot of companies that offer the same services, but the way we do it is completely different. Our project management sets us apart from these competitors because many of them do not use the technology and techniques that we use, ”he says.

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