Debt concerns have pushed funding costs for non-bank lenders to multi-year highs in recent weeks, casting a shadow over the Indian economy ahead of the nation’s election.
India’s property industry has been reeling for years from the economic shock of the government withdrawing high-value rupee notes from circulation in 2016 and imposing a sales tax the following year. The sector has seen sluggish sales, mounting inventories and falling prices. Tighter regulation took effect in 2016 and 2017.
Other highlights from the interview:
Oberoi, which builds luxury homes and is constructing Mumbai’s first Ritz Carlton, plans so-called affordable homes selling for about $150,000 each. In the Mumbai suburb of Thane, such dwellings may be about 600 square feet (56 square meters) in size, while in another suburb, Borivali, micro apartments as small as 300 square feet are a possibility.
Company may sell a REIT in 2020 or 2021 once its commercial property assets reach about $300 million.
Oberoi plans to secure more land through auctions and bankruptcy proceedings.
Company won’t take over unfinished projects from other developers because it prefers to stick to its own designs and processes.