Sunil Mantri speaks about affordability and hotels!

Here is an excerpt from an old interview where Sunil Mantri – Chairman and Managing Director of Mantri Realty Pvt. Ltd. had spoken about affordable housing options. He had answered several questions asked to him by Niranjan Mudholkar. He also had explained his plans about expanding his company in the hospitality department and running hotels in India. This part of the interview gives a brief description of Sunil Mantri’s views on making available affordable houses and successfully taking charge of hotels.

My question is to the President Elect of Maharashtra Chamber of Housing Industry (MCHI), member of Govt of Maharashtra’s New Housing Policy and member of FICCI’s Housing Committee. Affordable housing has become a key term in the industry today. Do you think the several ongoing and upcoming projects under this concept are truly affordable because many of these projects are coming up in far away suburbs or outskirts of metros? Please explain.

Basically, there are many misconceptions about the term affordable housing. Affordable pricing in housing is defined as six to seven times of an individual’s annual income. Secondly, affordability is area specific. For example, it will be different in South Mumbai than what it is in the suburbs. That is because the housing cost is determined by land pricing in the metros. So, a house will demand the price based on its location. It is an international phenomenon. I believe the need of the hour is to develop good transportation, good roads, good communication systems, etc.; basically good infrastructure. The government should emphasise on cutting down the travel time for the person staying in the far suburbs or the outskirts by providing good infrastructure. Good infrastructure holds the key to the progress of the real estate sector. Why will a person mind staying in the outskirts if he can travel to the city hub in 40 minutes or one hour without any hassle?

Will you operate your hotels in-house?

Yes, we are acquiring the land, developing the properties as well as running and operating the whole portfolio. We will run and manage 3-star properties on our own. However, we are joining hands with 5-star operators for our 4-star properties at a couple of locations. You need a good brand in the higher category. We have an ‘in-principle’ tie-up with Oakwood for 4-star deluxe serviced apartments. It is a 200-key property on the outskirts of Mumbai - basically in the suburbs. It will take shape by March-April 2010.