Mr. PNC Menon, Chairman Emeritus, #SOBHA Limited, discusses the #investment opportunities for Indians in #Dubai on NDTV Profit on 9th November, 2015.
Masomenos as well thank you very much for joining us it’s great having you here with us today i understand that you’re here to promote made on shobha to indian investors and they’re also a lot of other dubai-based developers here to do the same thing my question to you sir is why is it so critical to target this indian investor segment at this point of time any point
Of time dubai realistic is very um industry it’s only 15 years old and most of the most of the time the last few years the indian buyers there could be from uk there could be from india’s it could be from singapore they could become to buy or the other middle eastern countries they comprise twenty percent of total volume of business this exam in your body so there is
Tremendous amount of potential from the indian indian indians since i allus on shabbos even larger ambitions i mean you already in india and dubai palestine look in markets and like london europe we are looking at london we are looking at maybe we are already looking at a five billion dollar project in london six projects and we have a partner the british partner
And we expect to launch the first project by the first up of 2017 and what kind of projects will be little bit of acid ential proj in central london luxury luxury and can you give us some details in the address or weds when we looking no we have not to release anything we ought to officially announce the project once we announced we will come with a complete they
Sing in a collateral accepted sister for their project it’s very interesting trend loaders also their india buses there you are there why london i chose because it’s very close to the vine we have to apply only son our switch there and this is a game we have been claimed in my the business building industry i’ve been involved in the last 46 years so i feel that
Building is not a great challenge for us and that is one of the challenges in the industry and we do we do everything ourselves we don’t subcontract our bead on we got our own design team we got our engineering team wrote our own factories we got contracting the interrupting is backward integrated so there is potential company like this globally there is a huge
Potential but do you feel that the situation is such that the domestic market indian real estate market doesn’t offer enough opportunities for indian investors at this moment she real estate business are very cyclical business their ups and downs geography to geography the cycle of that up and down together is different whatever little lab i have sort of mapping
How exactly the cycle is the according to me the indian cycle is about five years three years positive and two years negative relation the negative cycle of india the last negative cycles and they started in the second half protein and he’s continuing 15 accordingly with the first half of gypsy knowledge could be negative and we will again get into positive cycle
Appears from the second half 16 market over here is going through a slump right now prices are too high people are not buying and you yourself stated many times the past that mumbai the prices just inordinately high so do you feel that developers should cut prices to spur growth is there room for them to cut price see what i’ve seen is there are two issues one is
The sentiment of the market when you go through negative side flow it’s not that people don’t want to buy they don’t want they will not by using the negative sentiment because they expectation is that the price will come down they don’t want to cut a check out that pondum not that we do not have a requirement but what happens with builder they go through under sub
Financial engineering is done properly they go to a real back period in terms of their finances so i will say that you know according to me price reduction is not a solution to it but if you have taken a price to a level which is not right definitely this gives an opportunity to correct and stay at the white current car right price so if you look at bombay market
Do you feel price a recent level where they can bring it back down a bit i have a feeling is that they can bring it back and the prices and mom bears become highly unto his number this is this to the fact so let’s talk about the regulatory challenges because a lot of developers here talk about delays in approvals relation regulations but in dubai your face um
Far better environments so what are you what would your recommendation be to the indian government’s to help improve the real estate sector here she if you come to see the interpretation and we have proper loss and if you feature fini the change of the launch being done on time the interpretation is a problem and the other requirements of the really are maturing
Democracy its own weaknesses of amateur intercom democracy when it matures the period of maturing period there are a lot of issues which are which is very very negative for any questions for that crime but we will be there probably another glitch let’s say 15 to 30 years yeah but that’s quite a long time 15 to 30 hz for a human race you know it’s not a very long
Period of time thank you very much for joining us thank you well that was the founder of show / group pnc menon and finally as we wrap up this edition of the show i want to just reiterate the fact that the national stock exchange has gone through a major rebranding exercise
Transcribed from video
Mr. PNC Menon on Dubai as an Investment opportunity on NDTV Profit – 9 Nov '15 By SOBHA Limited
