"Change is the only constant". The proverb aptly describes the year 2016-17which has been one of the most eventful years in the last decade or so for the economy asa whole and the real estate sector in particular.The year witnessed everything frompassage of critical reform bills including Real Estate (Regulation and Development) Act(RERA) and Goods and Services Tax (GST) to radical reform measures like Demonetization ofspecified banknotes.
Naturally these developments were accompanied by uncertainty and volatility but I amhappy to share that despite these challenges Omaxe has continued togrowata reasonablepace.This has been made possible mainly due to the dedication and relentless efforts ofour employees suppliers and associates - who have always ensured that we keep achievingour goals year afteryear and for that reason alone we are recognized as one of the mostreliable and trustworthy name in the real estate space.
The government with its clear intent of bringing about reforms has set the tone forapositive long-term change. This coupled with the liquidity in the banking systemresulting in reduction of home loan rates by close to 100 basis points since January 2017will provide an impetus to the customers waiting on the sidelines to buy their dream home.
Indian economy for the last couple of years has been the fastest growing economy in theworld. It is currently passing through a transformative phase post demonetization andimplementation of GST. These reform measures are part of a concerted push by theGovernment to boost the formalization levels ofthe economy; and necessary to bump up thegrowth rates to 8% and above.
We believe that the realty sector is also on the cusp of a paradigm shift in the waycompanies conduct their businesses. We welcome the new reforms and strongly believe thatimplementation will lead the realty sector towards a level playing field which will bemore transparent compliant and business friendly. This will help the sector battle theperception ofconsumerdistrust primarily on account of delay in delivering projects. Alongwith modified guidelines for Real Estate Investment Trusts (REIT) infrastructure statusfor Affordable Housing and relaxed FDI norms RERA will improve the investment worthinessof the sector for institutional players.
At Omaxe even though it was not in force we have always lived and practiced theprinciples of RERA. Fulfilling our commitments and meeting timelines has been the norm atOmaxe. This has been one of the key reasons behind our continued success. The cyclicaldownturn Demonetization RERA&GST have created a short-term uncertainty however wethink that the same will lead to increased consumer confidence due to consolidationimproved accountability and metrics of companies like ours built and driven on theprinciples of high quality construction technology and highest degree of customersatisfaction.
We strongly believe that the Indian Realty sector is set for a transformational changewith Urbanisation change in demographics and real affordability to drive growth over thenext couple of decades. This according to us is the beginning of the revival of thesector. However the most important factor that could trigger the revival of the sector is'timely delivery'-as it will help regain the lost trust in the sector. During the yearyour Company delivered a total of 5 mn. sq.ft of area.
We believe our scale of operations and presence across North India gives us an addedadvantage as compared to our peers and add to our capabilities systems and processes toensure delivery and delight to our customers within the set parameters of time qualityandbudgets.
With the government focusing on Affordable Housing Housing for All by 2022 and PradhanMantri AwaasYojana (PMAY) along with reform measures we see opportunities expanding at afast pace particularly in the locations where we are present. Omaxe with its inherentstrength diverse portfolio widespread presence and strong credentials will benefit fromthe sooner than expected uptickin the real estate market.
I once again extend my warm wishes and thank our investors bankers board memberspartners suppliers employees and customers for their trust and support. May you all havea great decade ahead!