SME Times News Bureau | 03 Dec, 2021
In an exclusive interview with SME Times, Sanya Aeren, Chief
Advisor, Marketing & Communications at Berkshire Hathaway HomeServices
Orenda India, said that since the onset of the COVID-19 pandemic, the real
estate sector worldwide is stepping up its response to sustainable development.
Excerpts of the interview…
tell us about entrepreneurial journey of Berkshire Hathaway HomeServices Orenda
Orenda India is an Indian start-up in real estate
brokerage. BHHS Orenda India marks the
brokerage’s first global footprint in India. With our association, we aim to
bring a global mindset and global best practices to Indian real estate. Berkshire
Hathaway HomeServices is aligned with the best-in class technology platforms to
deliver world-class support to its network members far into the future. Our
agents will have access to BHHS’ active referral and relocation networks, and
its FOREVERCLOUD technology suite, which is a powerful source for lead
generation, marketing support, social media, video production etc. We would
like to contribute significantly to the development of modern infrastructure in
India with top-notch amenities.
Our vision is to disrupt the Indian real estate market by
providing world-class experience along with using cutting-edge technology
following the core principles and values of trust, transparency, integrity and
the reasons for increased demand in real estate?
India has been witnessing a steady demand for housing
throughout the country. With the onset of COVID and most organizations taking
the WFH route, demand for larger homes that incorporate workspaces has become
People also want additional facilities such as gyms, yoga
rooms, and home theatres to make them fully self-sufficient units. Millennial’s
who earlier preferred to rent properties over buying have a changed point of
view, and one which is fixed on purchase rather than renting.
Buyers are also looking for second homes that are outside
cities. Interested buyers are looking at destinations like hill stations and
other holiday destinations. One crucial factor while buying holiday homes is
that the house is self-sufficient and well equipped with top class features.
Reverse migration of people from cities to their hometowns
has also led to increase in housing demand in tier 2 and tier 3 cities.
There is also a sharp decline in the interest rates of
housing loans. Lower rates of interest allow homebuyers the flexibility to
raise the loan amount partially thus offering them broader choices of a more
luxurious property. This is inclusive of finer amenities and lifestyle
facilities in premium neighborhoods.
your view on sustainable housing and its future in India?
Since the onset of the COVID-19 pandemic, the real estate
sector worldwide is stepping up its response to sustainable development. With
an aim to create a sustainable country, people are taking steps such as waste
management- use of recycling bins and proper disposal, efficient elevators,
smart homes wherein lights should turn-off when no occupant is there in the
room, e-vehicles and much more. Smart sensors detecting movement is crucial to
make energy efficient buildings by optimizing the lighting, heating,
ventilation, and air conditioning. Efficient
energy management via smart sensors will help trigger alerts before any issues
of repair arise. Tracking and adjusting building systems efficiently will
prevent overuse of energy and meet compliance standards. In essences, people
are looking for real estate which would align with their sustainability,
beliefs, and commitments.
the latest trends in the residential and office projects?
Residential: Looking ahead, this time around, the Real
estate sector will remain risk averse. Firstly, with controlled cases most
rating agencies have not cut down on the prior aggressive growth numbers of
Despite the cyclic slowdowns, the structural demand is
robust which stems from the rise in disposable income, young demographics, and
a large urban centric population. Secondly, plenty of first-time homebuyers are
looking out for a home. Similar is the case with households looking to move out
and obtain larger houses.
Thirdly, lower housing loan rates further attract consumers
and add impetus to the market.
The Economic outlook for FY 2022, looks promising with 360
Realtors view research suggesting an overall positive economic outlook and most
rating agencies correcting the forecast GDP numbers in the range of 8 to 9.5
The Home Buying Sentiment looks sold at 30.7% buyers looking
to buy a home. The 360 Realtor survey suggests that a visible segment in the
market is looking to upgrade.
Office: Cities are growing at a rapid pace, which has led to
an increased cost of living for both individuals as well as companies. This
calendar year, India has seen a rapid growth in unicorn companies, which has
led to an increase demand in the luxury projects from the IT and other relevant
As per a real estate study done recently, India’s net office
absorption stood at a 4.39 million sq.ft. Specifically, in the Delhi NCR
region, a 5% increase has been seen in the net absorption of office spaces.
Following, the new social distancing norms, offices require
larger spaces. Also, a hybrid model shall be followed i.e., 15% of the employee
strength should be operating from office, 20% from home, and the remaining 65%
should be hybrid.
2022 look like for the real estate sector?
The Indian Real Estate market constitutes around 8 percent
of the GDP and is the second-largest employment creator after agriculture.
With a workforce of over 40 million directly dependent on
the sector, a strained real estate is bound to have a cascading effect on the
economy. As per IBEF, the real estate
market is expected to grow from USD 1.72 billion in 2019 to USD 9.30 billion by
2040. The ICRA estimates Indian firms to
raise USD 48 billion via InVITs and REITs in 2022.
Retail real estate and warehousing segment attracted USD 220
million and USD 971 million in 2020, the office space segment is expected to
cross USD 700 million by 2022.
The government is taking several initiatives to encourage
Tax deduction of up to Rs.1.5 lakh on interest on housing
loans, and tax holiday has been provided by Union Budget 2021-22. Under Atma Nirbhar Bharat Package 3.0, the
government has provided income tax relief measures when it comes to primary
purchase/ sale of residential units of up to Rs. 2 crore.
The residential sector is expected to grow significantly
with the central government aiming to build around 20 million affordable houses
Moving forward, the investment in real estate needs to be
backed by long term strategic interest to build a solid foundation for the
Government support, industrial sector initiatives and use of
technology can play a pivotal role in simplifying the transaction cycle,
driving engagement and improving the ROI significantly.
share about your future plans?
Our vision is to disrupt the Indian real estate market by
providing world-class experience along
with using cutting-edge technology following the core
principles and values of trust, transparency, integrity and longevity.
We wish to bring a global mindset and global best practices
to the not so organized current ecosystem of Indian real estate.
Our expansion plans are as follows:
South Delhi-Holi 2022
Mumbai- Jan 2022
Geographies under consideration- Goa, Ayodhya, Hyderabad