The economy is connected to real estate. The sector’s performance leaves a strong impact on the economy of a country. The affordability of real estate and rental prices and differences in those prices every year impacts the wealth of property owners directly. Real estate is an expanded business it covers residential housing, commercial offices, and retail outlets, trading spaces such as buildings, malls, hotels, theatres, and government buildings.
The economy affects the real estate market as in current times the economy is slow, there is a shortage of money in the market so the estate market is also down.
Coronavirus has impacted the market severely, testing its adaptability and some Business leaders have taken this COVID-19 pandemic as an opportunity in disguise for India. Many company heads are using different methods to cope up with the current situation. One such intelligent mind is Saubhagya Vardhan. Saubhagya is the managing director of Oikoshreem infra private limited. Saubhagya and his team started an international consultancy Oikoshreem with the approval of the Security and exchange board of India (SEBI) and Real estate Investment trust (REIT) which gives rights to all kinds of investors to invest in the Indian real estate market.
He and his team aim to tap the cash-intensive, unsegmented low-ticket size plot sale market and justify themselves as a proptech plot aggregator platform using technology and logistics on the scale. Oikoshreem helps people in achieving their dream of owning a house. Oikoshreem eliminates any hurdle present in transaction experience and becomes relevant in customized, responsive customer relationship handling and bringing hassle-free buying process automation to each buyer without charging any fee. Oikoshreem markets cover every buyer from EWS to Middle-class luxury real estate. Currently, in Lucknow, their priority is volume distribution of low ticket size product sales while in primary markets of tier1 metro cities in India, they focus on selling luxury real estate to our NRI clients and their existing privilege club of HNI’s clients.
Saubhagya has completed his higher studies in London and as a young entrepreneur, he chooses to invest his time and knowledge in the real estate business. As a managing director, He has handled challenges and outshone his competitors. He firmly believes that patience and perseverance are two characteristics that every leader should possess. He is a reader and a learner who always craves knowledge.
As a leader, he is optimistic toward the future but he is always ready to face the awful days also. Saubhagya always prioritizes his customers first and that’s what makes him different from others. In addition to hassle-free service, they offer health insurance on the sale of their products and have subsidized registry charges to women contributing to women empowerment campaigns.
Saubhagya started his journey from Lucknow as the city has the potential to attract home buyers from other districts due to rapid growth in Infrastructure. He realized that states like UP have still lacked a professional real estate service firm of Global standard and it firmly adds value to the client investment portfolio. On analysis, he finds out that the real estate business is expected to reach US$ 1 trillion by 2030 and it will contribute to 13% of the GDP by the year 2025. There’s a huge unorganized market worth 120 Bn $ in India were only large developers but no large distributor.
Real state is the key factor behind emerging markets and India is no exception in it but this sector always faces ups and downs. Saubhagya believes that if you are brave enough to take the risk then you can surely be the master of fortune. Government initiatives like REIT funds, etc., the sector will surely receive an FDI inflow, As per the notion of Saubhagya with the right checks and balances induced in the system to decrease the risk rate and make the system moderate, the future is favorable.
Saubhagya believes that the packages for the buyers in the housing category will not have any immediate term impact as these homebuyers with limited income are most impacted, some of them are facing job loss and some pay cuts. So the majority of them will revisit their decision to purchase a house. He also believes that real estate will jump back to the heights when the economy will increase. Repo rate of 4.4. % is the lowest ever in the history of the last many years. Ongoing demand revival and consolidation in the industry will benefit Oikoshreem and other marketing industries.
The shortage of money in the market has not affected Oikoshrrem because they depend on escrow accounts for revenue collection and in their plot segment, they have immediate possession and upfront payment system running. With good management and foreseeing policies, they can manage their work smoothly.
Covid- 19 and lockdown have retarded the ongoing projects and leads to delay in their completion. COVID-19 has disrupted the regular construction supply chain everywhere with delay in the supply of construction materials and a shortage of laborers, it has led to the delay of delivery timelines of ongoing projects. The real estate business was in an oversupply state even before the lockdown and condition have still not improved. Unsold inventory is likely to remain stable with possibly a decline of 3-5%.
Real estate is witnessing new trends as the customers avoid going outside or investing in grand and luxurious real estate projects and the tenants in the post-COVID world want to pay their EMI’s towards owned apartments rather than rent. Oikoshreem under the leadership of Saubhagya is adapting itself with every new trend, they are reaching desperate buyers in immediate need of moving into their apartment but still can’t nullify the fact that big-ticket size units are harder to sell in the present market. The upgraded class of new homeowners is a strong hope for the industry.
The current situation makes investors nervous to invest right now into new commercial real estate deals and the government is offering different programs and schemes to attract more investors. Reviving of real estate business will give a boost to the economy. Ministry of Housing & Urban affairs had already extended the deadline of projects by 6 months and further up to 3 months ad-hoc and with unlocking 5.0 critical labor shortage in the domestic market has decreased.
Govt. is trying best to manage the situation, RBI has given liquidity Investors to NBFCs so sustained cash credit line can be maintained. There has been a push from the government for ‘Housing for all mission’ and nearly 40-45% of the new launches in the top seven cities are in the housing category but Saubhagya believes that post-launch of the vaccine, market confidence will be restored and investments cycle will be rejuvenated and Oikoshreem is bound to have an optimistic view for the future.
Considering the opinion of Saubhagya Vardhan, a successful managing director Reduction of stamp duty charges will encourage more homebuyers. NRI investment in real estate in India is expected to increase exponentially due to reforms in the market because of COVID-19, home loans at lower rates, and increasing confidence of NRI buyers in India’s real estate.
Saubhagya and Oikoshreem are working hard to make the current situation normal for a homebuyer and they have gained lots of appraisal for that. They have high goals for themselves and are working vigorously to achieve it.