Home / PEOPLE / Business / Boom time for affordable housing

Niranjan Hiranandani

Would you agree that there has been a kind of revival in the last 5-6 months as far as the residential sector in general is concerned? Is the trend likely to continue?

Actually, the revival started from the March of last month. In fact, I was expecting things would get better by June but they happened earlier and I am happy about it. The demand has picked up but all the stories about prices going up are grossly untrue. I am not saying that prices are falling but they are certainly not shooting up. They are quite stable. The demand for real estate is huge and residential sector is unbelievable.

With this revival, do you think the industry has already started forgetting the few but hard lessons it was taught by the recession?

Every human being, every business man and every country is like that. Once the bad times are over, you forget the pains and start enjoying the gains. It is a cycle. There’s always going to be a recession followed by a boom and so on.

Do you think this boom will sustain itself for some time?

The demand will sustain. But nobody can predict the prices. If the king of Saudi Arabia cannot be sure about the oil prices then who am I to decide the real estate price? Nobody can; but it’s good to speculate.

How do you see the industry evolving in the next five years?

I think it will be a great industry. But I have a prediction which not many people agree with. In the last ten year, the total business by the private sector for affordable housing country wide was less than 5% on a broad perspective. In the next ten years, it will be at least 50%. The growth will be huge in that sector. May be Hiranandani will do it, Or DLF will do it or Raheja will do it. But the business in that sector will be very large. It will be similar to what happened in the aviation sector. People realised that business growth was in the economy class or the low cost segment. Likewise, the growth will be fantastic for affordable housing in our industry.

Story continues below

Advertisement

COMMENT   One of the finest residential complex in India. Hats off to Nirnanjan Hiranandani. There should be an industry leader li   1 Comments Read more comments »

How about the Hiranandani Group getting into this segment?

Of course, we will do it. But you know, we started Powai at Rs550 and today we are at Rs15,000. We started Thane at Rs1000 and today we are at Rs5000 plus. What do I do if the rich people come and buy?

Where do you see the Hiranandani Group in that time-frame vis-a-vis the industry’s evolution?

We have to understand that we are in the business of business. Whether we do textiles, whether we do infrastructure, whether we do power, whether we hospitality or schools; these opportunities will continue to grow. We will continue to divide our business into work of business and work of social infrastructure. Both require lifetime commitment. That is our strength as far as our group is concerned. And as far as the industry is concerned, the opportunities are far bigger. I don’t think there will be no downturn in the next five to ten years. The demand is so large that if we work sensibly there is not going to be any end to it at least in my lifetime.

A brief Profile

Mr Niranjan Hiranandani is the MD of the Hiranandani Group of Companies, a giant in real estate development. From his early beginnings of teaching chartered accountancy, he began his initial business by venturing into textiles with a weaving unit in 1981. His first spark of recognition in construction came with a project in Versova, Andheri in the mid-eighties. Often called as the man responsible for changing the skyline of Mumbai, Mr Hiranandani has received lots of accolades as well as criticism for the transformation of a land parcel in Powai from a quarry to what could be the country’s first integrated township.

He completed his schooling from Campion School, Mumbai and graduated with a B. Com Degree (Hons.) from Sydenham College standing Second in Mumbai University. Later, he completed his FCA from the Institute of Chartered Accountants of India. He is actively associated with and holds key positions in various government bodies, private and social organisations as well as educational institutions.