How do you assess India’s construction industry growth scenario?
The year 2023 was a landmark year for India as the country’s economic growth was resilient despite the geopolitical instability and market fluctuations that had adverse effects on other G20 economies. India has the potential to transform into the globe’s third-largest economy in the next five years. The erstwhile construction industry will have a pivotal role to play in achieving this goal. Currently, the sector approximately constitutes 8% of the country’s GDP and is expected to develop into a $1.4 trillion market by 2025.
The Union Budget 2024 announced several policies to boost the infrastructure sector through prioritizing development of public infrastructure, roadways, metro networks, airports, and affordable housing. Additionally, ‘Smart Cities Mission’ and ‘Make in India’ have helped attract foreign investments, further spurring growth of the sector.
The future growth of the sector will be driven by digital transformation and application of technologies like automation, robotics and mechanization. Sustainability will be another key trend which is set to change the functioning of the sector, facilitating its transition to a business model centered on a circular economy which will help reduce wastage considerably. Also, targeted certification and skilling programs to bridge the talent gap existent in the sector will be crucial to address in order to achieve unprecedented growth.
What is the role of real estate sector and urbanisation in the growth of Indian construction industry?
The real estate and construction industries are intrinsically connected with one another. While the construction sector lays the groundwork for the real estate sector, the latter acts like a catalyst driving demand for construction activities. This collaborative partnership has a massive impact on the economy as both industries also have an influence over other sister industries like manufacturing, logistics amongst others. Heightened construction activity leads to job generation since it’s a labour-intensive industry while a dynamic real estate market leads to increased property value which sequentially encourages an increase in construction activities, thus the cyclical progression continues aiding the economic development of the particular region.
Rapid urbanization is a key growth trend for both sectors as mass exodus to cities is spurring the growth of affordable, mid-range as well as luxury housing. Thus, both sectors have an essential role to play in the creation of smart sustainable cities of the future.
How is the company making rapid strides in real estate market, especially in the luxury segment?
Rustomjee Group is strategically expanding its presence in the luxury real estate sector, focusing on prime micro-markets such as Bandra West, Chembur, Mahim, and the Versova seafront. Our ongoing project, Rustomjee Crown, which has received Occupancy Certificates for wings A and B, offers luxurious living with a range of lifestyle amenities. Additionally, we have launched our inaugural luxury project ‘Rustomjee Verdant Vistas’ in Thane, leveraging the district's status as Maharashtra's third-richest area. Thane's growing demand for premium housing, particularly for 3 BHK apartments priced Rs 2.71 crores onwards, is reflected in the absorption rate increase from 52% in 2021-2022 to a remarkable 60% in 2022-2023, indicating a rapid growth trajectory.
Which are the major upcoming markets being focused? Can you highlight your key projects?
Currently, we are focusing on expanding our luxury footprint with four ongoing projects in various stages of development, all focused on luxury or premium housing in Bandra West. Recently, we have launched our maiden luxury offering in Thane, ‘Rustomjee Verdant Vistas’ in partnership with Keppel, headquartered in Singapore. Rustomjee Verdant Vistas features 440 units and generate a gross development value (GDV) of Rs 1,750 crore. The project offers 3BHK units ranging from 1,100 to 1,300 square feet and 4BHK units from 1,750 to 2,250 square feet. The additional value provided goes beyond the cost, as buyers receive far more than they pay for, particularly in terms of superior quality, enhanced amenities, and an elevated overall experience.
Each residence boasts expansive decks offering forever creek views along with providing additional outdoor living space. The project is equipped with 25+ luxurious amenities spread across 3 floors, including a swimming pool, gymnasium, amphitheatre,kids play area, club house, and senior citizen area, designed to enrich community interaction. Coen, a renowned landscape consultant from Singapore, has meticulously crafted the landscaping for 'Verdant Vistas'.
Coen's philosophy aligns perfectly with Rustomjee's commitment to authenticity and thoughtfulness, ensuring that the project enhances its natural surroundings while offering residents a serene living environment through landscape architecture. Additionally, Ministry of Design (MOD) architects offer idea-driven architecture and design expertise and Architect Hafeez Contractor, known for unique design concepts and bold execution, enriches the project with an added layer of luxury and comfort, further enhancing the living experience. A customer experience center for the project has also been developed by us. Key features of the experience center include an interactive touch screen setup that allows customers to explore the entire property through an intuitive sales tool. This tool offers a holistic view of the project, covering aspects like floor plans, amenities, and 360-degree renders. It provides a dynamic way for customers to interact with the property, exploring different units and layouts at their own pace.
How do you look forward to the emerging opportunities in the market?
We are a customer-centric brand always prioritizing their needs and catering to their demand. As mentioned before, we are witnessing an upsurge in the demand for luxury housing, thus our business strategy for FY25 is aligned with the market demand. We witnessed a supply gap in the Thane market with regards to spacious 4BHK apartments in the premium range, thus based on thorough research we decided to design a project that bridges the gap and fulfills the demand.
We are MMR specialists with a deep understanding of the city and cater to all price points and excel in luxury developments, having sold homes valued at 100+ crores. With a track record of delivering over 16,000 homes in MMR, we are well-versed in the complexities of redevelopment. Over the next three years, we plan to continue our successful redevelopment initiatives, having acquired 15 projects in the past two years, with 12 falling under redevelopment. Our asset-light model approach ensures sustainable growth in this segment.
