Omaxe Ltd. one of the leading real estate companies in the country and in business since 1987, has been recognised as the Best Brand 2022 by the Economic Times. This recognition came as a result of its adoption of proactive and innovative strategies in business operations. Besides, new marketing strategies have also helped Omaxe receive this wonderful acknowledgement for its efforts.
In a recently held fifth edition of the Economic Times Best Brands Conclave in Mumbai, Mr. Siddharth Katyal, Group director, Omaxe Ltd., and Mr. Prateek Katyal, Chief Technology and Marketing Officer, Omaxe Ltd., received the trophy on behalf of the company. Leander Paes, the former tennis legend felicitated the Omaxe team for their innovative work.
Recognition for outstanding work
This accolade has come as a consequence of a momentous year for the company where it delivered significant projects like Omaxe Chowk which was a unique blend of Mughal and European architecture. It also came up with a unique concept in World Street in Faridabad which was a microcosm of all the famous shopping streets around the world. These projects accompanied by unique marketing strategies have bolstered the name of the brand to higher echelons.
Change in Mindsets post Covid and recent growth metrics
People went into a conservative mode during Covid and were trying to save rather than invest. Their mindsets changed a lot as they realized that life can be uncertain and that it is better to secure the future of one’s children. This has led to a paradigm shift in real estate from investment based to need-based. Parents are now trying to leave assets for their children. This has led to a real appreciation in the residential real estate market. According to a recent report by CREDAI, housing prices have increased by 6% year on year for the quarter of July- September across eight cities while it increased by a substantial 14% in Delhi NCR which shows positive sentiments of the residential real estate market.
Sustained growth in the housing market
The housing mortgage market in India is currently under- penetrated amounting to just 11% of India’s GDP and is one of the lowest in the world. But with the shift in the mindset of the people post covid, the already strong structural demand for housing will receive a major fillip in the coming years. With central government planning to provide “housing for all,” the future of the real estate market, especially housing, looks bright.
Commercial real estate presented unique opportunities
The commercial real estate sector saw growth in verticals like retail real estate. Since people have been stuck up in their homes for the last two years, they were looking for socializing outside. This enhanced the demand for retail spaces for shops, dining etc. This coincided well with the diverse product portfolio of Omaxe which with its unique offering like Omaxe Chowk provided much-needed exposure for smaller brands. This retail-centric focus of Omaxe went a long way in helping it bag the much-coveted recognition. There also has been a huge demand for retail real estate in Tier II and Tier III cities like Lucknow and Faridabad. As many companies, especially IT, have been settling in these cities, people’s lifestyles have improved, and they have been exposed to a better life through their trips abroad and commingling with people from various occupations. And as people are getting more accustomed to upscale dining and shopping, it is going to push retail real estate demand in these cities furthermore.
Omaxe’s diversification helps it earn the accolade and several projects
Though funds in the year 2022 were constrained for real estate developers due to less investment by people as they were in saving mode, Omaxe’s diversified network that spans 28 cities and 8 states, and a wide-ranging product portfolio helped it sail the choppy waters. The same sentiment was reiterated by Siddharth Katyal, Group Director, Omaxe Ltd. who after receiving the recognition said, “We are honoured and delighted to have this accolade. While we constantly strive to deliver the best properties and emerge as a brand to reckon with, this recognition has come as a great encouragement in further continuing the efforts with the same zeal. The achievement is attributed to the organisations’ relentless efforts in creating a robust portfolio in the real estate industry. This accolade is a testament to the organization’s consistent efforts and agility to evolve as a business leader.
Need for more lenient regulations and norms
There is also the need for much more government intervention as infrastructure and real estate, which contribute significantly to the country’s economy, need tremendous support to grow and flourish. He also highlighted that it is essential that the Government relaxes the norms to ease fund flow, especially for those builders who have a consistent track record of doing superior work and have goodwill in the market. These much-needed relaxations, if provided, are going to bolster India to embark on a new era of development in real estate as well as other sectors. With current inflationary trends, borrowing rates might also increase which may result in construction costs going up. This can only be controlled by the RBI and the Government on both monetary and fiscal fronts. The real estate industry along with others will suffer eventually if these inflationary trends continue.
The year 2022, a challenging year
Though saving mentality of the people in 2022 was a big hindrance, Omaxe’s innovative strategies helped it to acquire several projects, majorly in five cities viz Chandigarh, Ludhiana, Lucknow, Faridabad, and Indore. According to Atul Banshal, Director of Finance, Omaxe Ltd., the company, attracted foreign institutional investors who, impressed by its past accomplishments, were willing to rely on Omaxe. What also helped omaxe receive this recognition was its primary commitment to customers as it prides itself on the timely delivery of projects. With the advent of RERA rules in 2017, 70 per cent of the funds must be used for the same project it has been acquired for, while the other 30 per cent can be used for other developmental and growth purposes. These rules, while constricting for others, spur ethical companies like Omaxe to timely deliver their projects which also helps in opening funds for other growth-related investments.
What also helped Omaxe win the accolade has been its equal commitment to its investors, bankers, government, and lending institutions. These efforts helped Omaxe not default on any of its commitments to any of these institutions. Though the company and real estate sector, especially the housing market, is on an upward growth trajectory, the support of right governmental policies and lowering of interest rates are needed for the sector to do well.
The raw material rates in the first six months of 2022 were significantly higher, which needs to be reduced eventually for the real estate industry to thrive.
All bodes well for the future….
The recognition also comes on the back of the company honouring its commitments to its investors and statutory and financial institutions. The company has taken significant steps towards doing exemplary work, and the recognition in the wake of it, augurs well for Omaxe and goes a long way in fulfilling its commitment to providing quality real estate solutions to individuals and companies alike. And the right market policies and inflationary control can bolster the real estate market for years to come.