Parsvnath Developers launched a â€˜25:75 House of Happiness‘ . In this the consumer needs to pay 25 percent now and 75 percent at the time of possession.
Parsvnath Developers on Friday unveiled a new corporate identity. It has refreshed company’s logo with the original name. It has also launched a new scheme called '25:75 House of Happiness' scheme, under which buyers would have to make payment of only 25 per cent of the total cost on booking and the balance on possession.
According to Pradeep Jain, Chairman, Parsvnath Developers this scheme is just to benefit consumer. "The consumer is not required to take the home mortgage or any kind of EMI liability till the consumer reaches the stages of possession," he explained.
Below is the verbatim transcript of his interview to CNBC-TV18
Q: Lets start with your restructuring or your new corporate identity program. What does this mean and this 25:75 scheme are you launching this in National Capital Region (NCR) only or is it for pan India projects?
A: We refreshed our logo with the original name. We are not planning to change the name of the company and the new fresh logo we have unveiled today.
Related to the 25-75 schemes, we come out with 20 projects. All those 20 projects are on fast track completion. All put together about 11 million odd square feet area. In that we have about 3 million square feet area unsold as we speak. So we have come out with a scheme 25-75. In this the consumer needs to pay 25 percent now and 75 percent at the time of possession.
Q: How many million square feet are available under this scheme and how many have you already sold?
A: The total area from these 20 projects is 11 million square feet. 8 million square feet is already presold and the 3 million square feet is within this scheme. These 20 projects are on fast track execution or completion.
In fact some of the projects are ready for possession in different locations, which are few projects in Delhi, NCR and in other cities like Ujjain, Moradabad, Jodhpur, Saharanpur and many other locations in North India.
Q: Can you give us an idea therefore of how has your pattern of sales been? How many million square feet did you sell in Q3, Q4, how many are you expecting to sell in the current quarter?
A: I cannot give the exact number of the last quarter. We are going to be coming out with the results and those numbers we will talk at that time.
Q: Are you coming out with this scheme because the demand has not been strong, has that been the trend especially in the northern region. We have seen quite a bit of jump in prices year on year (YoY)?
A: Demand in Delhi, NCR and other cities of North is very strong. There is no concern with the demand. Why we have come out with this scheme is just to give the benefit to the consumer. The consumer is not required to take the home mortgage or any kind of EMI liability till the consumer reaches the stages of possession.
We want to give confidence to the consumer, pay 25 percent now and rest on possession. There is no kind of home loan or any kind of liability till the consumer gets the possession.
Q: I would still want to know what this does to your growth? How will be the FY14 growth over FY13 you think?
A: FY14 is going to be very strong year for the company. From the last 2-3 years the company is concentrating only on execution and fulfilling our existing customer commitments. Now we are at an advanced stage and we are taking the help of the third party contractor to further accelerate our execution. FY14 and onwards we are very strong in terms of execution, delivery and sales etc.
Q: Will you be able to give us an idea of how prices are trending? Are prices in FY14 likely to be higher than FY13 or will they hold flat?
A: If you see the real estate as a whole there are three major factors – land, sanctions and the construction. Land prices are high these days. Sanctions and the approval costs have increased dramatically and the construction cost because of inflation keeps going up. So, FY14 is going to be at least 15-18 percent higher in price than FY13.
Q: Inflation is coming down. It has fallen now to about 5.9 percent. The next number we will get will be 5.3 percent. So, perhaps the inflation argument doesn’t hold. You still expect it to be 15-18 percent?
A: The inflation number you are talking about 5.9 percent and 5.3 percent that is the general inflation. However, if you see the labour, steel, cement cost as well as the other input costs within construction they keep going up.