Ashish has played a pivotal role in the success story of Puravankara, his resilient innovative skills are being leveraged in strategy formulation, operations, financial management and enterprise development. Presently, he is responsible for running the end-to-end businesss with his primary focus on the identification of opportunities for Puravankara Limited. Ashish is the President of The Confederation of Real Estate Developers Association of India, Bangalore Charter (CREDAI) and is a member of Youth Presidents’ Organization (YPO), Bangalore.
In a candid conversation with Mr. Ashish Puravankara, the Managing Director of Puravankara Limited, RealtyMyths tried to understand the company’s future plans. Here are the excerpts:
Hello Ashish! You have played an eminent role in the success of puravankara. Being delivered more than 50 projects what do you think about the affordable housing market in Bangalore?
With the government’s ‘Housing For all’ initiative and the recently announced affordable housing fund, affordable housing projects will see a boost across the country in the coming months, with Bangalore being no exception. Bangalore is one of the only cities in the country which has witnessed influx of a large white collar migrant population owing to the employment opportunities it offers. This has given a boost to affordable housing wherein buyers are looking for quality homes at affordable prices.
However, the acute water scarcity in Bangalore is a wakeup call. Isn’t it? What can the city do to ensure urban rejuvenation and sustainability?
With natural water bodies becoming scarce in Bengaluru, the core objective is to plan for sustainable environment-friendly methods to address the growing concern of acute water scarcity in the City. At Puravankara, our constant endeavour is to strive and maintain sustainability in every aspect of our construction in terms of operations and final execution.
It’s a mammoth task and impossible for the concerned authorities to tackle this issue without we as citizens working together. In fact, it requires a cohesive effort from all stakeholders (involved directly or indirectly) to minimize the impact in the least disruptive manner. There should be more PPP models which aim at reducing or minimizing environmental impact by adopting various eco-friendly measures. The same should be practiced in every aspect of our work from design, procurement, production, and distribution, of the focus, should be optimal utilization of natural resources. Some of the key steps which might help us in achieving environmental sustainability:
- Environmental, Health and Safety Compliances
- Robust pollution prevention strategies
- Optimising energy consumption at workplace and home
- Innovative and user-friendly waste management
- Promoting Green/environmental buildings
- Focus increase in the water level through better conservation of rainwater to replenish the same
Do you think RERA impacted the evolution of the real estate market?
The real estate industry has gone through a turnaround and transformation in last 12 months with a slew of various policies and regulations. These initiatives are much-needed reforms, which the sector has been waiting for since several years. It has created a level-playing field for all real estate players ensuring there is greater transparency and accountability towards end consumers. Post the announcement of demonetization late last year, the Indian economy experienced a phase of temporary disruption which also impacted the real estate industry. Though the initial days of demonetization witnessed a dip in new launches, sales, and enquiries.
But in the South, specifically, the Bangalore market, remains stable in comparison to other key markets. There has been a steady rise in sales volumes and customer enquiries which was very encouraging for all developers alike. Thus we are quite hopeful that the coming quarters will augur better for the entire industry.
While you are focussed on housing, most developers seem to be increasingly focussing on commercial development and find it more sustainable. Your views?
Residential and commercial development, both have different strategies of growth. At Puravankara, we give our best shot to every project we are developing and deliver the best product. We have established our brand in the residential segment and are now aiming for a considerable growth in the commercial space as well. We plan to build around 8 million sq. ft. of commercial office space in the next five years across Bengaluru, Chennai, Hyderabad, Pune and Mumbai. We have almost completed building around 2.5 million sq. ft. of commercial office space. Another 5 million are in the design stage. Irrespective of the segment, sustainable growth is a result of timely delivery, customer-centric approach and quality construction
How do you see the decision of 100% FDI in real estate as an opportunity for Indian Developers?
100% FDI in real estate is a welcome move and will further strengthen India’s position for attracting foreign investors for doing business. Global partnerships are the need of the hour and not only help in the growth of the sector but also accelerate overall GDP of the country. 100% FDI will augur sizeable investments and ensure better governance and transparency in the sector.
Will the success of NCLT in Jaypee open opportunities for acquisition and consolidation for you? What are the targets on your radar?
Puravankara Ltd is in talks with institutional investors to form two separate investment platforms totalling up to Rs 4,000 crore to fund its future expansion plans. The two funds would support its finance for the upcoming affordable housing projects pipeline and also to build a sizeable commercial rental portfolio within the next five years. The focus is to diversify the portfolio in terms of product mix. The company has plans to develop around 8 million sq. ft. of commercial office space in the next five years across Bengaluru, Chennai, Hyderabad, Pune, and Mumbai, through build and lease model rather than outright sale.