| Source: | | | | and expressway development. D S Kulkarni |
| With the Indian economy clocking eight per cent | | | | Developers too are busy spreading their business |
| annual GDP growth in 2005, government opening | | | | in Mumbai, Bangalore and New Jersey (USA), for |
| up FDI in sectors like Retail, and the booming IT, | | | | they believe that it works as a good expansion |
| ITES and BPO sectors, the real challenge to | | | | strategy, as Hemanti D. Kulkarni, President, DSK |
| growth lies in bridging the demand- supply gap in | | | | Group, explains. |
| the field of quality infrastructure and housing | | | | "Our group, as part of our expansion strategy, |
| demands. In such a situation, growth drivers for | | | | has taken up projects in other cities. The |
| the real estate industry will not only be metros | | | | migration rate to some cities in India is very high |
| but also non-metros . | | | | due to the availability of job opportunities there; in |
| In recent times, developers from Pune have | | | | such cities there is good potential for our business. |
| recognised the opportunities in other cities, and | | | | A multi-city presence enhances the corporate |
| their new agenda seems to be to create a | | | | image of the company; it also provides us with |
| presence for themselves, not just on home turf, | | | | growth opportunities. Any business house keeps |
| but elsewhere as well. Many developers are now | | | | exploring different markets for growth, in the |
| launching projects in places as farflung as Mumbai, | | | | same way are trying to explore different |
| Goa, Hyderabad, Chennai and even New Jersey, | | | | markets. The company also carries its brand |
| USA and Melbourne (Seen above). | | | | equity, when it expands to other cities. Thus the |
| There are several reasons for this emerging | | | | customers can be assured of getting the same |
| trend; among them are availability of land, easy | | | | quality product anywhere he goes, which also |
| funds, a growing demand for retail and IT | | | | helps him in making his buying decision." |
| development and quality residential or commercial | | | | Bangalore, Hyderabad and other cities that are |
| projects and private investors also investing in | | | | competing with each other for investment also |
| land and other real estate developments. | | | | offer new growth areas in real estate |
| "We started looking at Goa some years ago and | | | | development. Kumar Builders, for instance, are |
| waited until it became a booming market for real | | | | looking at Hyderabad and Chennai as the next |
| estate, with NRI demand high for posh residential | | | | cities for future growth. |
| property and the boost in tourism helping open a | | | | Lalit Kumar Jain says: "We started projects in |
| good real estate market," said Rohit Gera, | | | | Mumbai and Bangalore for our brand is established |
| Managing Director, Gera Developments (P) Ltd. | | | | and there is no need for us to market in any |
| "Today Goa is essentially an economy driven by | | | | different way. Besides the profit margins are low |
| its IT policy and IT Parks." | | | | in Pune, and there is a slow pace of sale; the |
| In such as market, Gera is confident that a | | | | appreciation is also less. In Bangalore, we have got |
| combination of innovativeness, access to modern | | | | a tremendous response; even a top builder from |
| technology and know-how will help them cater to | | | | there booked with us. We decided a long time |
| evolving demands of both current and future | | | | ago to move ahead as a multi-city developer." |
| markets, as well as alter the perception of | | | | Atul Goel, MD, Goel Ganga feels that if one wants |
| property purchase. "Goa has tremendous | | | | to be corporatised, then one should be a multicity |
| opportunity for there is an element of acceptance | | | | developer, as most would have an IPO. |
| for the kind of product that we do - intelligent | | | | Goel Ganga is developing projects in Mumbai, |
| buildings," he explains. | | | | Bangalore and in Nagpur, which would boast of |
| Gera's entry into Goa also means that for the | | | | what is being touted as the biggest mall. "Today |
| first time, a real estate developer is bringing in the | | | | the roles are distinctly defined - people who put |
| international practice of offering a warranty in the | | | | the funds in the property, or the landowners or |
| real estate sector. Gera's Imperium, like all other | | | | the realty funds. When these roles are clear, the |
| Gera projects, will have a five-year warranty to | | | | developer's role is solely to promote a project or |
| ensure that it stays in premium condition. This | | | | develop one. The ideal real estate would be a |
| five-year warranty covers two areas: preventive | | | | combination of land at the right location with |
| maintenance in areas of carpentry, electrical | | | | excellent planning which is implemented in a good |
| diagnostic works, plumbing and bathroom tiles, and | | | | quality construction and utilised by the owner." |
| repairs as a result of improper installation or | | | | When most IT professionals are multi-city |
| supply of any of the building's fixtures or fittings. | | | | workers, he asks, why can developers not go the |
| Another reason that contributes to this growth is | | | | same way and create better projects for them? |
| the boom in property values provided by highway | | | | |