B L Kashyap - ProjectsToday
Mr. Vineet Kashyap | ProjectsToday
Mr. Vineet Kashyap

1. What are your current and upcoming projects in residential and commercial space?

Our current portfolio consists of projects ranging from constructing hospital complexes, residential units to manufacturing plants and business parks in different parts of the country. Out portfolio boasts of projects for top of the line realtors to prestigious government properties in various segments, which is testimony to the kind of work we have been carrying out for decades. We often engage in implementing latest construction technologies coupled with seamless construction process and our overall expertise in the field of civil engineering that has time and again won us accolades.

Our order book in the upcoming projects section comprises of similar projects. Work on which will soon start as close to half of our current projects are on the verge of completion.

2. GST on real estate: Land leasing, renting for under construction houses will be taxed? Pros and Cos of the act.

GST on real estate / construction is still little premature to comment on. Currently, from what we have understood is that under construction apartments would be liable to attract GST of around 10% and apartments partially completed would attract GST on the balance portion, while completed apartments would not attract any Tax. Stamp Duty would be another grey area as it is unclear whether a framework exists to set off the stamp duty with GST, in the Real Estate Sector. We do believe compliances and costs would reduce because of the consolidation of a number of indirect taxes, but it is yet to be defined. It would be applicable on Land Leasing and Renting of homes; another significant issue would be the tax credit and the Work Contract Rates.

3. Your views on affordable housing vs. the premium segment.

Currently, the premium segments have been on the back foot for the last couple of quarters. Surplus inventory, high leverage and incomplete projects have hurt the market from the builders’ side. Lack of liquidity, high rates of interest and disappearance of investors from the market has hit housing from the consumer side. There is still a slight demand in cities like Bangalore but NCR even Mumbai has been hit by a slump in the premium segment.

Affordable Housing is still a relatively new concept in India. Land price in NCR (and in Delhi), Noida and Gurgaon are too expensive to start Affordable Housing. Moving 100-150 km out of any major city, where land might be cheaper may be an option, but then the question that arises is would a consumer buy a house here considering the lack of infrastructure to get back to the city every morning for their job. The Government today needs to designate land areas in the city and give them at a negligible cost to developers with an understanding to create true low cost housing. We believe this is still a new segment and are still waiting for first movers on the same.

(A simple way to understand the math behind an investment is say you have a 10 Cr Apartment. You pay 2 Cr Down and get an 8 Cr loan for 10 Years at a rate of 8.5% as of today. You interest payment with principal would be somewhere to the tune of 3-5 lakhs. A 10 crore apartment today would get you a rental of 1-2 lakhs. Your net shortfall will be between 2-3 lakhs, most people buying second homes will back off immediately).

4. B L Kashyap’s view on development of smart cities in India.

There is a lot of planning currently underway for smart cities, however we personally feel it is still a few quarters away. We are quite bullish about it and feel it could be quite successful.

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