Plan to set up operations in Dubai, UK and US for NRIs: Vishu Ramachandran, Chairman, Indiassetz
Synopsis
Ramachandran, who is the non-executive board member of Standard Chartered Bank Singapore and has worked for over three decades with the bank, talks about his vision for Indiassetz, the global challenges and the demand for property amongst investors globally.
Indiassetz, a real estate wealth management firm has appointed Vishu Ramachandran as its Chairman and is looking to double its assets under management by the end of this fiscal year. Ramachandran, who is the non-executive board member of Standard Chartered Bank Singapore and has worked for over three decades with the bank, talks about his vision for Indiassetz, the global challenges and the demand for property amongst investors globally.
What is the growth target and how do you plan to transform the company?
It is noticed that a large part of personal investment is in the property segment. Indiassetz has a customer base of over 10,000 customers and is looking at more than double that in the coming year. The company is adding 2,000 customers every month, who are mainly NRIs, HNI’s and Startup owners apart from individuals. We plan to have $2.5 billion in assets under management by the end of this fiscal year from $1.35 bn now. Indiassetz also works closely with bankers to ensure investments are moved to stocks.
Currently, the company caters to residential investment for the clients, any plans of branching out to other property segments?
Our vision is to build a business which is a technology-led and seamless model, that will drive buy, sell and valuation. We may also look at the natural progression of the commercial segment including warehousing and office if the customer wants us to manage rental yield assets. We have also expanded by setting up a branch office in Hyderabad, and Chennai and would be operational in Mumbai and Delhi too. We are also looking to set up operations in Dubai, UK and US for the convenience of NRI abroad.
How is the secondary residential market performing now?
I also believe the property as an asset will remain the top focus in the minds of the customer concerning India. IA plans to be a leader in the secondary sales market which is ever-growing for the upper middle and affluent class. The segment did get impacted due to the COVID-19 pandemic but is now seeing more activities. Post-Covid with hybrid models at work the housing needs have changed, buyers are looking at bigger homes depending on the privacy, needs and affordability. This up-scaling is bringing in new customers on board. Hence the secondary real estate market is picking up. This phenomenon is growing by the day. We are seeing a growth of 20-25% and the ticket size is property above Rs 2 crores.
What is the share of property in Indian investors’ portfolios vis-a-vis global markets?
Property constitutes the single largest investment class be it in the US, China, Singapore, Hong Kong or Korea. Mortgage penetration to GDP in India is at 11% while all other nations are beyond 70%. The penetration in India has to increase with a growing younger population and affluence. The property will continue to be the single largest asset class going forward. While the first house is always for your own living and must be treated separately but every additional house bought becomes an investment for the home buyer.
Do you see a global recession, high mortgage rate, inflation and high cost of construction impacting property sales?
This is not the first or last macroeconomic headwind and there must be management rigour and discipline to create a resilient business. Many top minds predict the future of nations annually, but none predicted the COVID-19 pandemic or Russia –Ukraine war. Every boom is followed by a bust. I am amazed at the developments in India despite being a large country the technology is growing in leaps and bounds. We need to build a business that is resilient and customer-centric.