Real-Life Home Buying Tour | Hyderabad Edition

"I would say three out of 10 years. Okay. But what is the winning recipe? By winning recipe, what is a return? I can get eight out of 10 years. That is most likely to get bare minimum of 2x. So bare minimum, you're saying I can at least make 2x in four years. Absolutely. like like almost like a 20% growth rate. That's 19.1% kagger."

"Now let's diagnose some of the risks in this right. What are the risks in this model? The only risk is the the builder reputation because if the builder is not finishing a project on time then all my math goes for a toss."

"I would say currently it might be around three out of 10. So it's still quite high 30% of the time. Quite high. It's coming down."

"See this is the best time I think the next 10 15 years is going to be the best time to be in real estate"

"By 2032 we are projected to double our economy 2223 3233 duck which will be $8 trillion. By when we are $8 trillion then the share of construction industry in the economy is going to be 15%. So economy is doubling your your share is doubling you're quadrupling in the next 10 years."

"And also the central government is coming up with a scheme called Swamit under which they're using drones and mapping all the lands and land owner details and digitizing all of that land records are being digitized."

"Imagine that being done at a country scale you might be a farmer in let's say UP and you can pledge your land borrow money and invest in hydrobat real estate that's going to happen that's the next big thing which is happening in the next 10 years"

"The real way to make you know how to get higher IRRa in real estate like how we were talking in the beginning, right? How to get 4x in four years is by using leverage. Okay. Right."

"So 20 lakhs has become one in four years. Four years back so almost four to five times. This is five times."

"So the last 3 to 4 years we were appreciating at 12 to 15%, and not just Idobat, most other cities. Of course, Idrobat has been doing incrementally better. Yeah. Right. Now let's take a conservative estimate, right? Like invest 5x return is possible like I would say three out of 10 years. Okay. But what is the winning recipe? By winning recipe, what is a return? I can get eight out of 10 years. That is most likely to get bare minimum of 2x. So bare minimum, you're saying I can at least make 2x in four years. Absolutely."

"To make 19.1% Kaggle right in that model what is the rate at which your property needs to appreciate that's very very important. Okay. If the property appreciates at 6.7%. Then you can make 19.1% K. Now inflation in our country is 6 and a half. So what I mean is if properties appreciate as much as inflation that's it then you can make you can double your money in 4 years."

"The only risk is the the builder reputation because if the builder is not finishing a project on time then all my math goes for a toss. Yes. Correct. Yes. Now how do you sort of what sort of research you can do so that you'll have more quantitative data on you know whether the builder is going to finish on time to make a more informed decision informed decision because if it doesn't finish and it's stuck for whatever reason my money is stuck you keep paying interest for I don't know bank doesn't care that the construction is not over I still have to pay the interest exactly so Ajitesh approximately what percentage of the time that my money can get stuck because the builder has not finished the construction because when I'm taking a property when it's still in the excavation stage. I'm also putting my money at risk. Exactly. So what how likely is that the money gets stuck because of the builder's problem? I would say currently it might be around three out of 10. So it's still quite high 30% of the time."

"See first and foremost uh Shon what I would say is uh uh before purchasing any property right go to a developer website right and in the list you'll always see completed projects look at the completed projects you can as simple as okay how many floors are those projects let's say I'm somebody who built I'm there in the industry for last 20 years but I'm building all five floor buildings and let's say the current one is something like this like 40 floors then the risk goes up because as a developer I wouldn't know the technical knowhow right so always take a keen look of the past projects of a developer, right? And if need be, you can even reach out if you want to do a little more research, you can reach out to people who are probably staying there. But if you want to cut it also, yeah, simply look at that. If that is like five floors and this is 40 floors, there's a difference. But let's say that's an office building and this is a residential building again there's a increase in risk. So as long as the continuity, let's say my previous project is something like 35 floors and this is 40 floors, then it's fine. Got it."

"So Shan, we've reached the location. Let's go. So 18 coming. Yeah. Like is it a new one? It's open. Yeah, it's a new. [Music] So finally we've come to the end of the day. Hajitesh learned a lot of things but would love to know what is the next 10 years going to look like for you in your company. So Sharon see basically we started ASBL in 2017 I with 10 crores of capital okay and injected another 40 crores over the period of time and guess what's our sales going to be this year our revenue going to be this year 500 crores 2,000 crores your 50 cr investment almost 7 8 years back this year today now you're going to sell inventory were 2,000 crores this year wow that's some very fast growth of business yeah so you know uh so our business has been doing good. Uh so we intend to further build on that scale right go much higher cuz we plan to list the company 3 years from now probably around 27 28 and then we want to venture into various other cities of the country as well because uh you know we have invested in a lot of tech our technological capabilities are much much higher."

"So basically we started ASBL in 2017 I with 10 crores of capital okay and injected another 40 crores over the period of time and guess what's our sales going to be this year our revenue going to be this year 500 crores 2,000 crores your 50 cr investment almost 7 8 years back this year today now you're going to sell inventory were 2,000 crores this year wow that's some very fast growth of business yeah so you know uh so our business has been doing good. Uh so we intend to further build on that scale right go much higher cuz we plan to list the company 3 years from now probably around 27 28 and then we want to venture into various other cities of the country as well because uh you know we have invested in a lot of tech our technological capabilities are much much higher. What do you mean by tech? What are you going to So we have built a digital twin system right essentially whatever happens in the real world right when you're building a project like you're building columns laying tiles and all of that all of those transactions are recorded in our virtual twin the digital twin and by using the data the algo is now you know guiding us to for smarter decisions so that's our future trajectory and even see this is the best time I think the next 10 15 years is going to be the best time to be in real estate"

"The next 10 years is the best time to be in real estate sector right so for India in India right let me share some statistics right uh currently we are 8% of the national GD GDP national GDP is approximately $4 trillion. 8% of that is a construction sector. Okay. By 2032 we are projected to double our economy 2223 3233 duck which will be $8 trillion. By when we are $8 trillion then the share of construction industry in the economy is going to be 15%. So economy is doubling your your share is doubling you're quadrupling in the next 10 years."

"And also the central government is coming up with a scheme called Swamit under which they're using drones and mapping all the lands and land owner details and digitizing all of that land records are being digitized. In fact in Telangana it's already done in Karnataka and Bangalore also I think it's already done various is done but imagine that being done at a country scale you might be a farmer in let's say UP and you can pledge your land borrow money and invest in Hydrobat real estate that's going to happen that's the next big thing which is happening in the next 10 years"