AlexFaalk
Joined: 02 Apr 2009
Posts: 1
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 Posted: Thu Apr 02, 2009 10:39 am Post subject: Business model |
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The changing business model would entail developers moving from operating profit margins as high as 50-70 per cent to more realistic margins in the 20 per cent range. Companies with unique business models have also done well so far, mainly through their entrenched presence in the lucrative slum rehabilitation/city redevelopment. Recent court ruling that brings the pre-1940 buildings under the redevelopment universe would be a shot in the arm for these players. The earlier law permitted only those buildings that were in dilapidated condition and approved by the Development Authority for re-development. These players also enjoy the option to sell their ‘transferable development rights’ to other developers thus providing them with fresh lines of funding as and when required. All of these players, however, remain highly geared at present. A few other companies have been diversifying into other businesses, hoping to offset a possible slowdown in realty. Forays into insurance and telecom Real Estate’s entry into the power segment and plans to foray into infrastructure by almost all the other players are evidence of this trend. Such moves may need to be viewed with caution as this would result in diverting resources to these sectors at a time when most players are already strapped for resources, to fund the realty business.
Some builders are synonymous with sound construction at affordable prices, correct construction, effective space utilization and practical designs. The projects are designed keeping in mind the basic necessities of its inmates. Most flat and Villa in Tripunithura are in tune with the trend of modern day small families and thus within 1000 sq. feet, and villas are 1325 sq. feet each ensuring adequate value for money. The flats are provided with spacious cupboards, beautiful views and conveniently placed doors. Not only are these apartments comfortable to live in but also made out of top-class material. Some builders hallmark is the workmanship, which is evident from the elegant exteriors, aesthetically done interiors and convenience.
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