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S. Shanker

Mumbai, Nov. 24 Indian realty appears a one-stop destination for global real estate developers if the overseas participation in the recently concluded ‘Cityscape India’ expo here is anything to go by.

No less than 50 companies had put up stalls, showcasing their capabilities. Many had deals with domestic entities under their belt and were eyeing for more.

UAE-based Limitless is partnering DLF for the Rs 60,000-crore Bangalore Knowledge City Project at Bidadi. SS Lootah International, also based there, is close to tying up with Hyderabad-based IVRCL.

The Executive Vice-President of US-based Trump Organisation, Donald Trump Jr, probably summed up foreign participation requirement when he said, “High-end luxury gets into the best locations. Premium quality brands get premium quality returns. Investors are more willing to play for high stakes if the risk is minimal.”

Focus is on the luxury segment and at best addressing the upper-middle class requirement. ETA Star is in the process of finalising a 500-odd villa configuration at Kochi, which its Executive Director, Mr Abid A. Junaid, said would be in the range of Rs 60 lakh to Rs 1 crore.

But fissures are developing in the India realty story, which is essentially about meeting the needs of the IT and ITES sectors which are seeing some slowdown in growth.

That apart, quality manpower shortage and rising wage bills are issues confronting developers. “The salaries (construction industry) have more than doubled in the last two years,” said the Chairman of the Builders Association of India, Mumbai Centre, Mr Anant J. Gupta.

Notwithstanding the challenges ahead, an Asian Development Bank statement that some 10 million housing units will be required by 2030 appears to have enthused the entrants more.

More Stories on : Real Estate & Construction | Foreign Direct Investment | Foreign Institutional Investors

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