Indian Real Estate Explosion

                                                                                         

In the twists and turns of the nation’s real estate boom, big city builders are going national, while local brokers are turning into developers.

Feroze Estate & Properties, a Bangalore broker has become a developer “Every builder today, was once upon a time a trader or a real estate broker. I am developing my own property and will retain it,” says Feroze.

Feroz Abdullah, who has just leased 150,000 sq. ft. to the Reliance Group at Prestige Feroze in the technology capital’s plush Cunningham Road, a location that has seen a three-fold rise in property prices over the last three years.

As well, Delhi-based Parsvnath, who also started out as a real estate broker is worshipped by many agents. While, brokering is more of liaising, with no value addition except bringing two parties together, in real estate, a lot of technical know how, say, how noise installation is provided on floors, or how to tackle a leakage problem is required.

When a realtor gets into retail, which are entirely two different sectors, there is synergy, but moving from hospitality to real estate can prove to be not only risky, but dangerous, as well.

However, these comments from entrenched industry experts has not deterred hospitality player Panoramic Universal from becoming a real estate aspirant.
The firm is planning to raise $12-million through a global depository receipt (GDR) issue, after announcing its foray into real estate and getting listed on the National Stock Exchange, including the BSE. Utpal Parekh, Panoramic’s CFO says: “We are not in the valuation game.

The money is being raised for the hospitality business. The announcement on real estate was made to inform the stock exchange. We need to get board approval and amend the MoU before we get into real estate.”

However, the furious expansion is not proving worrisome to everyone, dissimilar as it is to the IT / Dotcom story, where the valuation method was unreal. Real estate is an asset-based business, where the promoter puts in his money to grow the business.
It is a mixed bag and each case has to be examined individually, that is the recommendation of Jaidev Mody, Director, Peninsula Land, a Ashok Piramal Group firm that recently raised Rs. 160-crore for local investors.

As in the West, India too is seeing people change career and business options mid-stream depending on the lie of the land. Makes good sense to be a Jack of all Trades, albeit a master of each one.

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Source: IndiaRealEstateblog

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