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challenges before construction industry
Construction in India is growing at about 30% a year; architects joining the industry by just about 10% .
There are 86 architecture schools in the country, from where 3,000-4,500 architects graduate every year. This is barely sufficient to meet the demand. What’s alarming, accordingto a survey conducted by E2e Business Solutions,a people management company,is that architectural firms in India are having a hard time stemming attrition. The survey estimated an attrition level of close to 50% in firms at the entry level, especially over the last three year.
Builders cashing in on three years of galloping real estate values are creating developments that have moved beyond stand-alone commercial blocks and residences—they
are converting vast swathes of land into townships.And that’s set off a race for
architects and fattened pay packets.and even with a doubling of salaries almost every
year, there just aren’t enough specialists going around.
“The growing pains of Indian architectural and consultancy firms are not new, as they have been experienced in many markets around the world in similar boom cycles. Our advice to the India construction world is not to be fooled by the hype and build for the long term,” said Jeffrey M. West, director, project management services,DTZ India.The rush for talent is so acute that firms are getting in architects from overseas—from locations ranging from nearby Singapore to far-off North America, if they can afford it.
“We have tied up with Hok, a leading architect company in the US. This has helped create newer designs, in terms of space management in our forthcoming SEZ (special economic zone) venture in Chennai,”says S.S. Asokan, executive director, Shriram Properties Ltd.Others have joined the fray.Unitech Ltd, the country’s second largest real estate developer by market capitalization,behind DLF Ltd, has just assigned one of India’s most expensive commercial buildings that will come up in Mumbai.The complex will be designed by Skidmore, Owings & Merrill Llp.,
Irfan Razack, chairman and managing director, Prestige Group, explains, “The challenge lies in trying to retain good talent. This may not be difficult for leading names, but smaller ones are busy training newcomers and this is an
ongoing process.”As a result, smaller firms are facing a problem. Projects are getting delayed as they try to juggle training architects and hiring new ones almost as soon as the trained ones leave for bigger and better offers
.“Leading construction companies are even willing to pay Rs4 lakh per month to hold on to skilled professionals,” explains Subrata Kumar Ghosh, chief architect, Ansal Housing and Construction Ltd.
Showing posts with label Real estate India. Show all posts
Showing posts with label Real estate India. Show all posts
Thursday, November 29, 2007
Wednesday, August 29, 2007
Cityscape 2007
The international property investment and development event.
19- 21 Nov 2007
Bombay exhibition centre, Mumbai
The potential of India real estate industry is catching everybody’s eye around the globe . Indian real estate industry is growing at a rapid pace as a result of continued economic growth , favourable demographic changes , fiscal benefits , lower interest rates and sustained demand from end user as well as investor . The industry is estimated to grow by 33% to US $ 50 billion by 2010 .
Cityscape is common platform for world leaders in real estate industry , investors , Architects , strategy advisers to discuss and access the growth potential .
The important issues that will be addressed are :
1 Key driver for international investment.
2 Strategies for improving India’s Infrastructure to sustain property growth.
3 Identifying the most profitable asset classes and cities .
4 capitalizing on global markets – which location will offer the best returns ?
5 Fuelling investment opportunities in retail and criterion for success in mall development.
6 winning formulas for structuring joint ventures.
7 Capitalizing on the rise in private equity and other strategies for rising capital .
For more information check Cityscape 2007
19- 21 Nov 2007
Bombay exhibition centre, Mumbai
The potential of India real estate industry is catching everybody’s eye around the globe . Indian real estate industry is growing at a rapid pace as a result of continued economic growth , favourable demographic changes , fiscal benefits , lower interest rates and sustained demand from end user as well as investor . The industry is estimated to grow by 33% to US $ 50 billion by 2010 .
Cityscape is common platform for world leaders in real estate industry , investors , Architects , strategy advisers to discuss and access the growth potential .
The important issues that will be addressed are :
1 Key driver for international investment.
2 Strategies for improving India’s Infrastructure to sustain property growth.
3 Identifying the most profitable asset classes and cities .
4 capitalizing on global markets – which location will offer the best returns ?
5 Fuelling investment opportunities in retail and criterion for success in mall development.
6 winning formulas for structuring joint ventures.
7 Capitalizing on the rise in private equity and other strategies for rising capital .
For more information check Cityscape 2007
News from the Real estate industry .
1 DLF to purchase New Delhi mill land
DLF, India's most valuable real estate company, will purchase around 38 acres of land in New Delhi.The company will buy Swatantra Bharat Mills from DCM Shriram Consolidated in a deal worth 16 billion rupees - the largest private sector land deal in India.
Bharat Mills, located about four to five kilometres from the capital's central business district, lies adjacent to about 25 acres of land that DLF acquired in 2005. With a further two acres acquired earlier this year, the company now has 65 acres in one locality.
DLF has already received an in-principle approval to develop an IT SEZ on this land, and may invest 110-120 billion rupees in building an integrated township there.These purchases mark a shift in DLF's focus towards the capital and away from peripheral markets such as Gurgaon, in which its operations had previously been concentrated.
2.Massive property expansion planned by Reliance Retail
The hypermarket arm of India's Reliance Retail, Reliance Mart, has acquired over 50 million square feet through franchise direct routes over the last six months alone as it eyes fast expansion, Rediff India reports.The company has set a target of 100 million square feet by 2011 to develop its hypermarket
business, the news service said.The firm's first hypermarket will open in Ahmedabad .
Two further hypermarkets, ranging in size between 1,65,000 to 2,00,000 square feet, will open in Jamnagar, Gujarat, and Gurgaon, Haryana, in September.The company aims to open one or two new stores every month during this financial year.
3. Indian property investment moving to smaller cities
Smaller cities could be the next big wave in property investment in India, according to industry experts.With property prices soaring in the main cities, tier II and tier III cities might benefit from an increased attention from property developers and investors .Better infrastructure due to the proliferation of IT companies might further draw interest to tier II and tier III cities, as previously only major cities were sufficiently well connected, argues writer Rakesh Malhotra, of The Indian Real Estate Forum. Tier II cities such as Mangalore, Mysore, Lucknow and Jodhpur can save companies up to 30 per cent in costs drawing interest in operations and employees setting up there.According to estimates, demand for commercial property in tier II cities could amountto 1.2 million to 1.5 million square feet in the next year.Property developers have seen their stocks soar in recent years, with New Delhi-based Unitech having seen its share price almost triple in the past year, and the Bombay's Stock Exchange's main index for property has grown by almost 40 per cent in thesame time period.The growing interest in commercial property development in more out of the way towns could mean that growth is far from stalling in India.
DLF, India's most valuable real estate company, will purchase around 38 acres of land in New Delhi.The company will buy Swatantra Bharat Mills from DCM Shriram Consolidated in a deal worth 16 billion rupees - the largest private sector land deal in India.
Bharat Mills, located about four to five kilometres from the capital's central business district, lies adjacent to about 25 acres of land that DLF acquired in 2005. With a further two acres acquired earlier this year, the company now has 65 acres in one locality.
DLF has already received an in-principle approval to develop an IT SEZ on this land, and may invest 110-120 billion rupees in building an integrated township there.These purchases mark a shift in DLF's focus towards the capital and away from peripheral markets such as Gurgaon, in which its operations had previously been concentrated.
2.Massive property expansion planned by Reliance Retail
The hypermarket arm of India's Reliance Retail, Reliance Mart, has acquired over 50 million square feet through franchise direct routes over the last six months alone as it eyes fast expansion, Rediff India reports.The company has set a target of 100 million square feet by 2011 to develop its hypermarket
business, the news service said.The firm's first hypermarket will open in Ahmedabad .
Two further hypermarkets, ranging in size between 1,65,000 to 2,00,000 square feet, will open in Jamnagar, Gujarat, and Gurgaon, Haryana, in September.The company aims to open one or two new stores every month during this financial year.
3. Indian property investment moving to smaller cities
Smaller cities could be the next big wave in property investment in India, according to industry experts.With property prices soaring in the main cities, tier II and tier III cities might benefit from an increased attention from property developers and investors .Better infrastructure due to the proliferation of IT companies might further draw interest to tier II and tier III cities, as previously only major cities were sufficiently well connected, argues writer Rakesh Malhotra, of The Indian Real Estate Forum. Tier II cities such as Mangalore, Mysore, Lucknow and Jodhpur can save companies up to 30 per cent in costs drawing interest in operations and employees setting up there.According to estimates, demand for commercial property in tier II cities could amountto 1.2 million to 1.5 million square feet in the next year.Property developers have seen their stocks soar in recent years, with New Delhi-based Unitech having seen its share price almost triple in the past year, and the Bombay's Stock Exchange's main index for property has grown by almost 40 per cent in thesame time period.The growing interest in commercial property development in more out of the way towns could mean that growth is far from stalling in India.
Sunday, August 19, 2007
Mall Development In India
Retail and real estate compliment each other. The current growth trends in Indian retail market present large prospects in the retail real estate segment. Indian retail enjoys the status of representing one of the 10 largest retail markets in the world.
If the progress forecasted for retail sector in India keeps moving like this, then, by the end of 2008, a supply of 66 million sq ft. of new retail space will be developed in the eight largest Indian cities.
Developers are primarily focusing on the metros like Delhi and Mumbai for the supply of retail space as these cities enjoy advantages because of their sheer size and population. They have emerged as the most lucrative consumer markets in Asia. Close by heels are the cities such as Bangalore, Hyderabad, Chennai, Pune, where the per capita income is increasing due to high proliferation of IT companies.
Big Realty players Unitech, Omaxe, Suncity Projects among others are planning to come up with big retail projects in tier-II cities like Ludhiana, Jaipur, Chandigarh, and Amritsar. What is attracting these majors to foray into these cities is their increasing customer base.
Around 100 shopping malls are already operating here, generating 20 million sq ft of retail space. 60 more malls are likely to spring by the end of next fiscal year.
Chief hosting spots to see the major retail development are NCR, Mumbai, Bangalore, Kolkata, Hyderabad, and Chennai. However, the mall culture is likely to hit 60 more cities. With Delhi Development Authority releasing real estate space in peripheral retail areas, mall development has got a strong boost.
According to the real estate trends report compiled by Merril Lynch, number of malls in Delhi, Mumbai, Hyderabad, and Pune may touch 250 by 2010 against the present 40. Growth of real estate in Delhi mainly owes to huge outlay in IT/ITes, and BPO centers, thereby attracting investments in the segment.
via India real estate news
If the progress forecasted for retail sector in India keeps moving like this, then, by the end of 2008, a supply of 66 million sq ft. of new retail space will be developed in the eight largest Indian cities.
Developers are primarily focusing on the metros like Delhi and Mumbai for the supply of retail space as these cities enjoy advantages because of their sheer size and population. They have emerged as the most lucrative consumer markets in Asia. Close by heels are the cities such as Bangalore, Hyderabad, Chennai, Pune, where the per capita income is increasing due to high proliferation of IT companies.
Big Realty players Unitech, Omaxe, Suncity Projects among others are planning to come up with big retail projects in tier-II cities like Ludhiana, Jaipur, Chandigarh, and Amritsar. What is attracting these majors to foray into these cities is their increasing customer base.
Around 100 shopping malls are already operating here, generating 20 million sq ft of retail space. 60 more malls are likely to spring by the end of next fiscal year.
Chief hosting spots to see the major retail development are NCR, Mumbai, Bangalore, Kolkata, Hyderabad, and Chennai. However, the mall culture is likely to hit 60 more cities. With Delhi Development Authority releasing real estate space in peripheral retail areas, mall development has got a strong boost.
According to the real estate trends report compiled by Merril Lynch, number of malls in Delhi, Mumbai, Hyderabad, and Pune may touch 250 by 2010 against the present 40. Growth of real estate in Delhi mainly owes to huge outlay in IT/ITes, and BPO centers, thereby attracting investments in the segment.
via India real estate news
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