Corporate firms entering real estate

ShelliTodd · Joined: 28 Feb 2009 Posts: 1

The Real Estate Boom in India and the relaxation in FDI are also attracting interest from foreign investors to invest in India and many are seen tying up with the local developers in expanding their business. As the competition in the market is intense, builders are going out of their way to be different and provide quality services and varieties in their business. Real estate is much more professionally managed with a number of big players who are entering into the business. There are no monopolistic positions in real estate, as there are more players today in the development game of real estate. The greater the number of players, the healthier the competition and the beneficiary of all this game would at last be the end-user.

While top developers in India like the DLF, Ansal, Omaxe, Sobha Developers, Bengal Ambuja, Unitech, Vatika and Sahara Infrastructure among a few have initiated large scale real estate developments in the residential sector catering to all segments of the society. With more corporate firms entering real estate, a corporatisation of real estate can be witnessed. In the residential segment, with the increase of disposable incomes and easy availability of home loans provided by banks and other financial supporters, most builders are trying to woo investors with lucrative features and the latest inclusions are premium luxury apartments and condominiums fitted with the most modern accessories in home luxury. The commercial ventures consist of state-of-the-art office spaces, sprawling malls, multiplexes and retail outlets. Reports indicate that 200 new malls with a combined retail space of Rs.2.5 crore/sq.ft and investment of Rs.12 crore are expected to come up in this year and coming years. ICICI Venture Funds paid Rs 100 crore for picking stake in Hyderabad’s Viceroy Hotels. West Bridge Capital Partners acquired 10 per cent stake for Rs 25 crore in Royal Orchid Hotels. Besides, several other deals have been inked in the sector. India’s largest private company Reliance has plans to saunter into hospitality sector. Textile behemoth Bombay Dyeing is in talks with Walt Disney, Ritz Carlton and Peninsula to form collaborations.