Sanjeev Srivastava, the founder and MD of real estate firm Assotech started out with

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civil contracting business. His big moment came in 1997 when he got to develop a housing project near Noida. His Rs 220-crore firm is now working on projects worth Rs 1,000 crore — in hospitality, residential, IT and corporate spaces. He speaks to Shilpa Shree about the real estate sector and his company’s expansion plans

Do you admit that the real estate sector has slowed down? How do you plan to cope with the present situation?

Just like any other sector, there is a slowdown in realty sector as well. The main reasons are high interest rates on housing loans, drastic increase in prices of construction raw materials, high inflation rate and lesser availability of disposable income among other things. Region-specific affordable housing will not only bridge the gap between the “haves” and “have-nots” but also provide shelter to a majority of the population in our country.

Can you specify your company's strategy to cope with the slowdown?

We plan to provide affordable homes to the residents of tier-II and III cities. Recently, we launched a township in Gwalior and received a great response. We are soon going to launch a township in Bhubhaneswar with special emphasis on the “affordable” theme.

Please brief us on your expansion plans.

We have projects under various stages of construction in Noida, Greater Noida, Ghaziabad, Rudrapur, Haridwar and Gwalior. By the end of this year, we intend to launch a township in Bhubhaneswar. Some other projects are also in pipeline but it is too early to talk about them.

Celeste Towers — This premium project is coming up in Sector 44, Noida. We have tied up with SK Das Associated Architects, Leo International Design, Bangkok and Belt Collins of Singapore for the project.

Nest Flexi Homes — There has always been a great demand for more space inside one’s home. We realised this and designed a home in which the end user can play with inside spaces as per his need. This is how the concept of Flexi Homes evolved. The Nest Flexi Homes adjust to the needs of the owner. It has brought more space inside the house by giving the end user unlimited flexibility.

For instance, the living room can open up to accommodate a large, happy gathering; all bedrooms can extend seamlessly into spacious balconies. In addition, every home is open on three sides to give a supreme sense of freedom. Some of the other features are:-

Large lofts in each bedroom

Built-in storage space in bathroom

Extra storage space in kitchen

What is your outlook on the sector as a whole?

At present, the market is witnessing a transitory slowdown. However, considering the opportunities present as well as the strong economic fundamental drivers, the outlook for the mid-to-long term is positive. The emergence of new markets, ongoing corporatisation of the sector, integration with global markets, innovative products, and new funding mechanisms will catalyse the progress of this sector and investment vehicles, such as real estate mutual funds and real estate investment trusts, have introduced a regulatory regime, which has had a positive impact on the sector.

The recent interest rate hikes have adversely affected the realty sector. Considering the high inflation, how is the sector coping?

“End user” has become a key word in present context. A real estate property (especially residential), not only provides shelter to the members of the family of an end user, but also is a form of investment for the buyer. Also, increase in demand for residential and commercial sites among NRIs (non-resident Indians) has pushed the price of real estate upwards. This trend, in turn, offers a common platform for Indians and foreigners to invest in Indian real estate for higher and definite returns. The real estate sector now looks for genuine end users and if needed, offers value additions (in the property) to the buyer in order to maintain business growth.