Developers are offering Swedish massage, a vigorous Kerala head rub, a good old steam bath and many more at picture perfect destinations that are a good trek away from cities.
After making luxury villas and apartments in the heart of town, property firms are now wooing people to exotic spas and resorts.
From luxury to leisure, real estate companies such as Brigade group, Omaxe Ltd, Prestige group, Sobha Developers Ltd and Value Design build Pvt. Ltd, are entering into the leisure segment to build health resorts and spas in the backwaters of Kerala or amid the plantations of Chikmagalur in Karnataka.
Mr. Vineet Varma, chief executive officer, Brigade Hospitality Services Pvt. Ltd said, “The huge demand and scope of business in the leisure and hospitality segment are the major drivers for builders like us to get into this vertical,” Brigade Hospitality Services Pvt. Ltd is a fully owned subsidiary of Bangalore-based Brigade group. “Also, there’s only so much you can do in the residential and commercial sectors and new verticals like these complete our portfolio.”
Brigade group is coming up with a Rs100 crore premium health spa resort in the quiet coffee plantations of Chikmagalur, about a four-hour drive from Bangalore.
While the group will develop the property, it has teamed up with Singapore-based hospitality brands Banyan Tree and Angsana to operate it.
The leisure segment has attracted not just top-of-the-line developers but also new entrants.
Value Designbuild, a five-year-old real estate company based in Bangalore, is also set to develop a spa along with leisure homes.
Another Bangalore company, Sobha Developers Ltd, has a full-fledged Ayurvedic spa offering the traditional Kerala Ayurvedic massages, herbal baths in its first integrated township Sobha City in Thrissur in Kerala.
“Tier II or smaller cities offer a lot of variety for real estate development and we want to capitalize on the growing demands for our consumers. With the middle class getting richer, it is imperative to give them choices with projects like these,” says J.C. Sharma, executive director of Sobha Developers.
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Currently, there is a slowdown in the number of transactions happening within the industry. There is a shortage of funds and thus a lot of developers and buyers are all in the wait and watch mode. The rise in home loan interest rates combined with inflation has caused a slowdown in the middle level demand; however, the luxury level demand has not been as affected. There are some builders who are not yet compromising on their prices, and these builders with greater holding power are expected to hold out for another 6-8 weeks before yielding. Foreign investors too are adopting a cautious approach now and are waiting for developers to improve their own functioning before stepping in. Better locations for malls, high streets, commercial complexes are preferred. Since the traditional commercial mortgage spaces are too costly, alternative locations are being looked at. India tier 1 cities have increased in the transparency index; however there is still a lot to be done before we compete with the international market. Our standard policies need to improve, currently except for SEZs and townships; there is no single window format in place. FSI (floor space index) is also a major problem, coupled with cash transactions and speculators, the real estate sector is seen lacking. Currently, investors are also a lot more intelligent. Also, with the foreign interest Indian property receives, builders are put under more testing conditions. This a clear indication that there is still a lot of hope in the industry, investors are coming in too, but are more careful in terms of proper valuation and appraisals. While currently rentals are up and purchases are going down, things will hopefully turn around in the next few years. The government is planning to start a housing index, and builders are starting to follow international business practices. Even the low transparency in the finances of real estate is being looked into. Transparency was not so important an issue previously, as it is now. Policies regarding FSI are also clearing up and townships and large retrials are becoming more transparent. The markets are adapting to cater to the international investor and smarter buyers. Those companies that do not change will not survive.For more view- realtydigest.blogspot.com
The demand for talented and skilled individuals to power the growing real estate industry has increased. “The Indian real estate sector is maturing from the short-sprint mindset and is gearing up for the long distance stakes of sustainable real estate development,” says Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj, real estate money management and services firm.