Constructions for posterity: Rajesh Mishra, president of Real Estate Developers? Association of Jharkhand

When he was 24, and just out of an engineering college, Rajesh Mishra took the plunge into the unknown and untested waters of real estate development. Today, 21 years later, Mishra heads the Real Estate Developers? Association of Jharkhand (REDAJ). The ?first generation? developer, who is the son of an engineer, hails from a middle-class family. And, says Mishra, who is a mechanical engineer with specialisation in automobiles, he decided to take a plunge into this sector as he was ?unmarried, and then there was that jawani ka josh?. To add to it, prospects were not bright for mechanical engineers in 1985. So Mishra developed a ?taste? for building when he was supervising the construction of the family?s home in Ranchi, which was funded by his father.

Mishra and a few friends got together to begin their career in real estate by constructing duplex houses in 1985, when the apartment culture had not arrived in Ranchi. Multi-storied residential buildings became the vogue in 1990. But the response to Mishra?s venture was good, and the group decided their decision was correct.

Mishra still is learning. In the midst of reading Joe Calloway?s Indispensable, the builder says: ?From what I have read so far, I have learned some things about the qualities that makes an entrepreneur indispensable.?

He takes time off to talk to Arun Kumar Thakur about certain aspects of real estate business in the capital and also offers advice to those looking to purchase an apartment.

What is the state of real estate development in Ranchi?

It is good and will get even better if the city manages to attract software industries, like they have done in Hyderabad. The city can absorb more apartment complexes, but the infrastructure has to be developed for that.

Your entry to this sector was ruled by your liking for it. What are the special factors that you liked about this field?

It is a creative field and a complex constructed today is going to last for about a hundred years; that is a very satisfying feeling. And, socially, real estate and agriculture are two major sectors that provide employment to a great number of unskilled labour.

How many apartment complexes are there in Ranchi?

Though no proper count has been made, it is estimated that this city today has about 2,000 apartment complexes, some big, some small. Roughly speaking, all complexes taken together provide housing accommodation to more than 30,000 families. More units are needed.

What are the major bottlenecks in constructing more apartments?

The major problem is that land is not easily available. The reasons are urban ceiling act, the Chhotanagpur Tenancy Act and the lease land provisions.

How can the problem of land availability be solved?

Most would like to own an apartment on the outskirts of the city because of the cost factor. But they would be reluctant to do so because such areas could lack in facilities. The government could take care of this problem by developing infrastructure in the peripheral areas. I had been to Bangalore recently and I found there that the urban core has been re-arranged; the real expansion has fanned out in all directions. This approach should be adopted in Ranchi. Yes, efforts are being made in this direction and the concept of City Development Plan (CDP) is welcome. We were also invited to participate in the meeting of the stakeholders in the CDP and we had offered some suggestions, which were taken seriously.

What did your organisation suggest (at the CDP meeting)?

We suggested that city centres should be developed in every area, like it is in New Delhi where residents of Greater Kailash or South Extension can do most of their purchases at their respective city centres. In Ranchi, at the moment, all construction-related activities are going on along the main roads. But if city centres are developed in say Kanke, Bariatu, or Ashok Nagar, then a major problem would be solved and people wouldn?t mind living there.

We also offered suggestions on traffic, sewage and drainage system. We are ready to co-operate with the state government, because, after all, we and our children have to live in this city.

What are the prevailing rates for apartments?

It depends on the area, and the quality of finish and facilities. But the rate could approximately vary from Rs 800 per square feet to Rs 1,600 per square feet.

What precautions should a person take before purchasing an apartment?

First he should check the reputation and experience of the developer concerned, and also verify if the builder is a member of the REDAJ. It is also important to find out if the relevant authorities have sanctioned the apartment plan. If there is any doubt about the title of the land, then the buyer should get the land records checked by an advocate.

What should a purchaser do when the developer does not keep his commitment or compromises on the quality of work?

If the purchaser comes to us and if the developer is a member of REDAJ, we will mediate and help the purchaser. A developer, who has long-term plans to stay in this business, will not compromise on the quality of his work or on his commitment, because bad reputation travels fast.