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Interviews

Real Estate is passing through transition stage from slowdown to recovery: Dr. Sunit Sachar, Parsvnath Developers

Dr Sunit Sachar

Dr. Sunit Sachar, Sr. Vice President-Marketing & CRM, Parsvnath Developers

Dr. Sunit Sachar is a seasoned marketing professional with 39 years of experience in the field of Marketing Management, Advertising, Public Relation and working as Project Centre head. With doctorate in Marketing, he holds 4 other post-graduation degrees in the field of Advertising, Sales & Marketing Management and is also a Fellow Member of the Institute of Administrative Management and many other professional bodies. He has worked in 8 different industries and created hallmark of Excellence in each.  Currently, he is working with Parsvnath Developers Limited, heading Marketing, Advertising and CRM departments as Sr. Vice President.  He enjoys over 2 decades experience in Real Estate and has contributed very successfully in many innovations in the field.

Dr. Sachar is widely travelled and keeps himself youthful by writing poetry and contributing towards philanthropy and cultural activities. In an interview with RealtyMyths, Dr. Sachar shared some of his learning of life and why he feels the current real estate market is going through a transition and will soon bounce back. Here are some of the excerpts of the interview.

How you got associated with Parsvnath Developers? How has been the journey so far?

After successful stint of approximately 6 years with Ansals and a year with another Real Estate major, I joined Parsvnath Developers Limited as Vice President (Marketing).  The journey of over 11 years with Parsvnath Developers Limited has been very interesting, and exciting as well as challenging.  I was provided the opportunity to be one of the persons instrumental in the growth of the Company as the Company progressed from 5 Projects to over 95 Projects, pan India.  During the course of journey, I headed Marketing, CRM, Advertisement, PR departments and also have been profit centre head for projects apart from being COO of Uttar Pradesh, the State where we have maximum projects.

It is said that the real estate market is currently experiencing a slowdown. Do you think so? How is the sector performing?

Every product is subject to product life cycle where the Industry/Product experiences cyclic ups and downs.  The Real Estate also is subjected to this phenomenon and now passing through transition stage from slowdown to recovery. The performance of the sector depends on the health of the economy and government’s spending.  Currently, the government is moving from planning into execution stage of various projects, both infrastructure and others sector.  Also there has been correction in the home loan interest rates, thereby improving demand and plans are afoot for further reduction which shall be for the better.  The entry of many players in the Affordable Housing has also stimulated sentiments as it is satisfying the latent demand of the actual users. In addition to the above facts, the market has seen rationalization of project pricing by developers which is a welcome factor from the buyers’ perspective. In keeping with the above and in the light of various plans announced by the government, it is believed that the turnaround is around the corner and the sector shall now begin to bloom.

Given the current market conditions, what changes you would like to make?

The old demand of the construction fraternity to be recognized and to be given industrial status is still pending. The request for having single window clearance for projects with pre decided clearances is still at a desire stage. The rationalization of stamp duty for relief to the buyers is also yet to be a reality. The reduction in taxation to the property buyers is also to be considered as multiple-taxation is discouraging the purchase. It is the dream and desire of the government to bring in Affordable Housing for all.  If it is to become a reality, the government should come forward to subsidize the cost of land ( which is most expensive and essential raw material & getting scarce day by day ) apart from providing tax holiday on essential raw material i.e. steel and cement which come in use for developing Affordable Housing.

What more the government should do to boost Affordable Housing?

We need to understand that the difference between high-end and affordable projects is the margin of profit.  Thus, for incentivizing the developers to build Affordable Housing, the government can consider income tax holiday on these projects. Also, with the land getting scarce day by day and urbanization growth at the rate of 15 to 20% per annum, the need for higher FAR for making the projects to go tall is also a necessity of today’s time. Needless to add, this will require the government is to augment its infrastructure as well as prepare itself to cater to Fire Fighting and other needs because of buildings higher heights. Many States have already come forward to allow sale of Floors on plotted development.  However, some States like Uttar Pradesh are still to follow.  Whereas the idea on going horizontal is accepted, such permission should also be considered as it will end up solving land use and housing needs, apart from aiding economy.

You have been in this industry for so long, any achievements you would like to discuss with us? What keeps you motivated and encourages you to grow, both personally as well as professionally?

As far as achievements are concerned, during the course of 2 decades and work experience in Real Estate sector, I have been successful in launching / re-launching over 200 Projects. I also spearheaded IPO advertising where the company’s share was oversubscribed to record 58 times. I had also been instrumental in introducing innovative strategies to tide over lean periods.  One of the examples of the same is ‘House of Happiness Scheme’ wherein by suitable modification in the Payment Plan, a new Vista was open to the Real Estate industry to follow and introduce the similar scheme giving a flip to the dormant demand. I have been one of the firsts to judge the potential of Radio advertising and use it as a medium for promoting Real Estate and initiated the concept of Walk-Through for promoting sales etc. for the industry to follow.

Apart from these, I have also been able to contribute towards training MBAs from IIM and other institutions as well as teaching Event Management and how to run business as a successful channel partner etc.

The factor which motivates me is the success I have received in all my ventures as well as encouragement and affection which has been bestowed by industry / office colleagues on me. With a sportsman’ heart and never to die spirit, I have been able to scale the odds and difficulties and converted disadvantages into opportunities with “out of box” thinking, hard work and innovations.

What advice you would like to give to youngsters who are looking forward to a similar career path.

The career in Real Estate is very interesting, challenging and demanding.  With the multiple players now in the field offering the multi-dimensional projects at differential pricing, the challenge has become more interesting.  The desire for property and asset building is an age old phenomenon and shall always remain.  Hence, the potential in the field is tremendous.  Any professional working for the industry would be the nodal point of conversation in all social gatherings.  The industry is getting more and more professionalized and specialized and thus has a bright future.

                                                                                                                                                 

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