Globally, too, real estate remains regional-focused, points out Gulam Zai, National Director, Knight Frank. The relationship can also work like this – a local development and have another develop on the same plot at the same time. This goes a long way in reducing the timeline of the project. A big builder can have a controlling stake in a project and pass on joint development rights to a local one.
It has also been observed that smaller builders have fared better as compared to pan India builder. Larger builders were over-committed, they had multiple projects and their sales were affected drastically. There was a debt equity ratio imbalance, points out Shweta Jain, head, residential, Cushman & Wakefield. “A local builder may tie up with a pan India developer for security of the project or for branding purposes. It works well for affordable housing formats wherein pan India developers can tie up with local builders who have large land banks or local builders can enter into a P and P with the government for delivering housing in this segment,” points out Sunil Jindal, CEO, SVP Group.
Courtesy HT:05/09/09
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