Kamanwala Housing Construction

How has been the performance of the real estate sector in recent times?
The construction industry in India is working like corporate sector since last four years. Before that, only few companies such as Unitech, D.S. Kulkarni, Ansal Housing, etc. were engaged in this business. During the last three years there were public issues worth Rs 20,000 crore and the price of the shares was in the range of Rs 300 to Rs 500. Further, in the last three years, some new companies have entered the housing sector, including DLF, Orbit, Akruti, HDIL, Omaxe, etc. People are more interested in investing in the housing sector because there is a boom in this sector which will see their investments grow. During 2009-10, the performance of the real estate sector was good as compared to 2008-09 because during 2008-09 there was recession in the market due to which the housing industry had slowed down. However, during the current year we expect a much better performance in this sector and there will be an increase in the demand from the public which will be 20-30 per cent higher than the last year.

Please comment on the demand and supply situation of the real estate sector in India?
India is second largest country in terms of population which is currently around 110 crore. Out of this, 70 per We expect a much better performance in housing sector cent people live in villages and remote areas whereas only 30 per cent live in urban/semi-urban areas. Further, as regards urban areas, there is no land available for development for housing sector, so the alternative is only semiurban areas where real estate industry can develop housing. Now, in cities like Mumbai, Delhi, Kolkata, Patna, Kanpur, Nagpur, Pune, etc. there are vast areas which are underdeveloped or encroached with slum. These areas can be developed into good townships for the poor. In Mumbai, it is estimated that the slum area is about 70 per cent and in Delhi it is 5 per cent or so. Other cities also have a major part as slums. Additionally, the government is also providing support by way of giving extra FSI which will encourage builders to carry out construction and provide houses to the poor free of cost. If we look at the volumes taking place in these cities, we’ll find that there will be no problem for the next 25 years. A lot of new projects are coming into the infrastructure segment, including roads, airports, water sources, power, etc. which will also support the housing sector.

Government should also provide water, roads, health, power resources to the people so that the construction industry can develop better housing for the common people.