In an exclusive interview with Holiday Home Times, Suresh Rangarajan, CEO of Artha Property, speaks about his company's projects, India's holiday home market, and why buyers can expect more from their award-winning developments.
The Interview
Please tell our readers something about your company.
Artha is one of the fastest-growing real estate companies in India and is synonymous with building homes and thereby creating wealth for its customers. Artha has quickly changed the face of the realty market in South India and has become a household name in Bangalore and Chennai. As a member of CREDAI Bangalore, Artha has established itself as a company that provides innovative concepts and value-for-money homes across locations and price segments.
The numerous accolades won by Artha are a testament to its excellence and growth. Artha was conferred Power Brand status by the Brand Finance Institute, UK. It has also won the Emerging Business India Award by IES, the Brand Excellence Award in Real Estate by CMO Asia, and the Most Innovative Marketing Concept award at the National Real Estate Awards.
Give us some details of your portfolio — your completed projects, ongoing developments, and those in the pipeline.
With over 45 projects under its belt, all completed within a span of three years, Artha is one of the fastest-growing real estate companies in the industry. Our projects are in the residential space and span key metro cities like Bangalore, Chennai, and Hyderabad, as well as holiday home destinations such as Ooty, Hosur, and Karjat. We have also recently entered the overseas property segment across the UK, Europe, and the US. Our completed projects include Dhakshin City and Royal Gardenia in Chennai, and Brickfield Shelters and Royal Garden in Bangalore. We currently have over 10 million square feet of area under construction.
You have projects in Karjat, Ooty, and Hosur. How would you compare and contrast each of these destinations as places to invest in real estate?
Locations like Karjat, Ooty, and Hosur are on the outskirts of metros like Mumbai and Bangalore, roughly three hours by road. All three are scenic and work particularly well for those who want to get away from the city and own a vacation home. Our project in Karjat, Villa Montana, comprises Bali-style villas with private swimming pools overlooking the surrounding Bhimashankar hills. Similarly, our project in Hosur, Mountain View, overlooks the picturesque Jawalgiri mountains and comprises eco-style cottages.
These locations are best suited for weekend getaways and therefore work well as vacation or holiday homes for investors. Given their distance from workplaces, they are not intended for residential end-users who need to be close to the city on a daily basis.
What are the challenges you have faced in large-scale development in these areas, and what learnings would you share with individual buyers?
One of the biggest challenges is obtaining approvals from local village panchayats, entering into agreements with farmers, and securing permissions from the relevant authorities for the conversion of agricultural land to non-agricultural use. The complexity of getting roads built and mobilising electricity and water supply for the project adds further layers of difficulty. Individual buyers should exercise particular caution regarding the legality and clear title of the underlying land. It helps considerably to deal with professional builders rather than brokers or small, unknown developers.
What is the current status of the holiday home market in India?
The holiday home market is definitely on the rise. It has become common for affluent investors to own two or three properties. After purchasing flats for their own use, investors look for vacation homes that are far from the chaos of the city yet close enough to reach in a short drive. There has been a significant increase in the number of developers offering second homes, farmhouses, and resorts with scenic views — lakeside, hillside, or riverfront properties.
Which geographic regions or cities show the most demand for holiday homes?
The major metro cities have shown the greatest demand for holiday homes on their outskirts. Owning a farmhouse on the outskirts of Delhi is extremely common. This is followed by Mumbai (Lonavala, Karjat), Bangalore (Ooty, Hosur, Coorg), and Chennai (OMR, Pondicherry).
What is the buyer profile you are catering to with your holiday homes?
The typical buyer is a male aged between 30 and 45, affluent, mostly from a business background, who looks at the second home both from an investment perspective and as a social status symbol for entertaining guests.
What factors are driving this age group to buy holiday homes? Do you see them using these properties regularly, or primarily for post-retirement?
The key drivers are social status, the desire to travel and escape the city on weekends, and the strong proposition of capital investment. There is a mix: some investors use the vacation home regularly, while others are focused purely on rental returns or capital appreciation.
What post-purchase services do you provide to buyers? How are these gated communities managed after handover?
Artha has arrangements with professional facility management companies to handle the maintenance and upkeep of all properties, including the villas. Maintenance covers electricity, cabling, water supply, sewage, security, swimming pool maintenance, health club operations, a shuttle service, and a small convenience store within the complex. The projects are fully gated communities with a wide range of amenities including a pool, gymnasium, and clubhouse.
Do you see NRIs as a significant segment of your buyers? How are you reaching out to them?
Yes, we see a significant number of NRI buyers across our projects. We have engaged channel partners in the Gulf and the US who serve as local points of contact and generate referrals. We are also very active in overseas exhibitions and run targeted digital marketing campaigns aimed at NRIs. Notable exhibitions include Times Realty Expos, Exotic Property fairs, and the Investment Abroad Expo.
On the international side, which countries or locations have you identified for your projects, and how has appetite been among Indian buyers?
We evaluate international projects on the basis of the builder's reputation, locational advantage, and the potential for capital appreciation. Our projects include Mar Menor, a five-star golf course and spa resort in Spain, which was at an attractive price point given the economic conditions at the time of the original article. We also have a project in Florida, USA — Amrit Spa — centred around the EB-5 scheme and targeted at Indians looking to send their children abroad to study or to attain permanent US residency.
While there is genuine demand from Indians looking to buy property overseas, the segment is niche by nature, and the process is slower given the legal complexity, the challenge of obtaining home finance for overseas properties, and the constraint of international site visits. We have recently entered this space.
What scope do you see for fractional ownership, timeshare, and similar models in the Indian market?
Players like Club Mahindra are very active in the timeshare space. Artha is not currently operating in this category, but it is a space we are watching closely.
What's next for Artha? Where would you like to see the company in the future?
We see ourselves consolidating our reputation as a developer of repute as we launch two or three extremely ambitious new projects in Chennai and Bangalore. Over the next few years, the focus will be on delivering the projects already under construction to a high standard and on time.
For a prospective buyer, who should they contact and which projects are currently on sale?
Customers can reach our centralised call centre at 080-46 000 000 or 044-46 000 000, or browse and enquire online at www.arthaproperty.com. Our relationship managers will get back to them promptly.
Project Status
This article was last updated on 25th October 2020. The updated phone number for Artha Property is (080) 49081100 and the updated email is customer@artha.in. Readers are advised to verify current project availability and pricing directly with the developer before proceeding, as project statuses and contact details may have changed since publication.