Vishwajeet Jhavar, CEO, Marvel RealtorsPatience is a virtue, possess it if you can…” goes the old adage, and it has served Marvel Realtors well! Firm in their belief that cities take their time to accept realtors, 24 million sq ft and 11 years later, the company ranks amongst one of Pune’s widely recognised names in luxury housing. After targeting prime locations in the city, it decided to reach out to Mumbai, Goa and Bengaluru a year ago. And, the strategy holds firm: to grow slowly and steadily till the city becomes familiar. Vishwajeet Jhavar, CEO, Marvel Realtors, talks about the company’s strategies and the industry in conversation with Shriyal Sethumadhavan.How do you view this sector’s growth over the past 11 years?India’s real estate scenario has undergone major upheavals in the last decade. This sector meets the basic needs of housing and creates direct and indirect employment opportunities. Also, where the property market in India has traditionally been unorganised, recent years have seen a consolidation of positions in the market. Developers have been stretching their capacities to meet the growing demand. And, at a policy level, the Indian government’s stand to adopt FDI policies in real estate has encouraged several countries to invest in Indian properties. Certainly, all of this has been shaping the unorganised sector into an organised one, which is a big boost for its growth.Why luxury residential construction?There has been a continuous demand for top-end residential spaces over two decades due to rapid development in the Indian economy and the increase in disposable income. Moreover, people are aware of global trends and want them. Also, in any developing country, the demand for luxury housing is 6-7 per cent of the total housing market. However, in India, this is at around 1 per cent. And, although the middle segment is cluttered with many players, there is a demand for affordable and luxury housing. Hence, it’s a market to tap.Also, the company has recently forayed into commercial projects offering space for the 21st century business…India’s growth story in the past 10-12 years has led to the growth of several industries and businesses. The requirement is for quality office spaces by which these businesses can showcase their success and create a good ambience for their clients as well as employees. Today, green offices, while being a company’s prime responsibility, are also associated with luxury. Despite being relatively smaller spaces – around 2,000 sq ft plus – they strive for a separate identity and premium environment. This is what we provide.What is the total area under development and current land bank?We have 24 million sq ft under construction worth Rs 10,000 crore, to be executed in the next four years. Currently, our land bank stands at 400 acre. While 95 per cent of this is in Pune, the remaining is in Mumbai, Goa and Bengaluru.Home automation is a standard feature in all your apartments. Kindly expound on this and your ‘after-sales-services’.With 70-80 per cent of our automated products imported from ABB in Germany, we use KNX protocol-based (European interface BUS) systems for our homes. Its major advantage is that components like video service, smoke alarms, etc, can be added at any point in time. Also, our in-house expertise in programming this product makes it easier to fulfill the client’s needs. Moreover, we have also invested heavily in after-sales services, which are offered even after years of purchase.You prefer employing international architects and landscape designers…With varied clientele, international designers are exposed to newer design styles. This has only resulted in improved quality and detailed designs; providing user-friendly, convenient apartment layouts; and creating unique spaces, which add value to the customer’s quality of living. Amongst the many international architects and landscape designers we are working with, HB Design is designing quite a few projects in Pune, Bengaluru and Goa. Moreover, we are working with Waho Landscape Architects, Dubai; Shma, Singapore; Manhart, Australia; etc. Projects sell because of good designs; and our unique elevations also make them stand apart.Today, building green is associated with several benefits…Building green is not a simple development trend. From an economic aspect, green buildings help improve productivity of employees. It’s a myth that certified projects get environment clearances faster. For example, we have the highest number of green certified projects in Pune and are positioned second in India. In fact, our Marvel Cerise, Marvel Kyra and Marvel Cascada in Pune have been pre-certified Platinum under IGBC Green Homes. However, we have achieved the required clearances purely through design. Apart from this, building green may increase the cost by 4-5 per cent per sq ft. But, in the long run, this only proves advantageous.How do you promote and ensure trust and transparency in your activities?For long-term business growth, it is imperative to be ethical and transparent. And, since we were never keen on quick, short-term gains, we adopted an ethical app­roach since day one. We deliver on the promises we make. Future development plans are mentioned in our brochure, and transactions are conducted only by cheque.Mumbai recently welcomed its new municipal commissioner. How do you envisage the way forward?Strong development construction rules add to a city’s long-term vision and growth, especially in a city like Mumbai. We have not expanded much here apart from a project in Prabhadevi and are starting one in Colaba. So, if development rules are well thought out, benefitting both clients and developers, they will be welcomed. But, there is a dire need for a single window clearance to reduce the financial burden on developers – and in turn, the clients – and make way for timely completion of projects.How do delays affect operations?At present, time consuming regulatory approvals delay development of projects. Initially, the sanction for starting work on a project was given within five months; this has now extended to 14 months! This leads to an increase in financing costs making the project more expensive. Also, at times, municipal corporation guidelines differ from those prescribed by the environment ministry and this again affects approvals.In order to ensure profitability, how do you plan your capex?Efficiency in terms of design, project timelines, minimising waste and global sourcing of materials ensures this. We have invested in a pre-cast factory that helps complete a building within 60 per cent of the timeline. Investments have also been made in construction equipment such as batching plants, plastering machines and other new technologies. Moreover, the company has restructured project finance to reduce the extra cost burden on the project.Can you give us an insight into your project pricing?Cost is controlled by demand and supply. Given the high demand for luxury products and the limited supply, we see prices increasing gradually. Inflation and increase in prices of cement, steel and construction materials will be further reflected in the selling price. But, in Pune, we have a whole range of residential projects. Depending on the land rate, these are priced anywhere between Rs 4,000 and Rs 12,000 per sq ft. In Bengaluru, at present, three projects executed in Defence Colony are being sold at approximately Rs 16,000 per sq ft. Another project is priced at about Rs 18,000 per sq ft. And, in Goa, our projects at Dona Paula in Panaji are launched at about Rs 12,000 per sq ft. We have not yet decided on prices in the Colaba project in Mumbai, but this will be expensive because of the location and sea view.What’s the way forward?In the last fiscal, we completed more than 2 million sq ft of construction and launched 7 million sq ft, which is estimated to be completed in the next two to three years. We have exercised our call option in MLPL (a JV with Ochziff and Marvel Realtors) to increase the percentage of shares from 51 to 70 per cent. We have also launched a number of projects in partnership and plan to expand in multiples every year.Fact Sheet:Year of Establishment: 2001Top Management (Promoters): Vishwajeet Jhavar, CEONo. of employees: 700Centre(s) of operation: Pune, Mumbai, Goa and BengaluruOngoing projects: Sentinel, Edge, Zephyr, Cerise, Aurum, Arco, Sangria, Cascada, Fria.Order book: 24 million sq ft under construction, worth Rs 10,000 croreKnow of a builder who made it big in the industry? Write in at feedback@ASAPPmedia.com