Bottom Line: There are many second generation developers in Noida real estate market but most of them are living in the shadow of fathers. Track2Realty speaks to a cross section of people who defend the privileged lot as being more process driven.
Whether it is the clash of two generations or natural progression where the generation next has taken the business forward to the next level, the tale of two generations has always been a subject of interest in the business community.
The dynamics of the two generations get all the more curious in the business of real estate since the nature of the business is such that often the grounded wisdom of the first generation is juxtaposed to the fancy ideas of the second generation.
In Noida market many second generation developers have overtaken the business and hence it is worth a look to evaluate the performance of the respective generations. This can also show the way forward as far as the growth and future of the city property market is concerned.
The fundamental question here is what has been the difference between the first generation and second generation in terms of functioning. In Noida market there are a number of second generation real estate developers and what makes the curious case of generation gap newsworthy is the fact that they are living in the shadow of their illustrious fathers.
Market watchers also point out that Noida is a case study in the Indian real estate where the generation change has been symbolic and not substantive. It is a market lacking innovations where the second generation has not been noticed on their own.
Analysts point out that it is not just about being two different generations, but two different thought process and work culture in many of the cases. This difference of operations can therefore confuse any market tracker.
While the first generation real estate entrepreneurs secured their positions in this most competitive field adopting conventional methods of construction technology and business practices; the second generation is more dependent on technology, branding and latest construction practices prevalent in developed countries banking upon on the reputation they inherited from their predecessors.
Experienced with the transition of the business to his next generation, RK Arora, CMD of Supertech maintains that it won’t be right to say second generation lacks the understanding of ground realities of business. According to him, the second generation is privileged with strong business foundation, established brand reputation, protected opportunities and lower risks. They are exposed to the real estate atmosphere from their childhood making them capable to face any challenge once the business is handed over to them.
“Transformation is taking place in Noida real estate as well. Once the real estate in Noida was all about construction of flats and housing complexes but the situation is fast changing. With the transformation of the city into an international hub, the real estate needs are also changing. Malls, multiplexes, sports complexes, infrastructure, educational institutions, IT & ITeS parks and much more come under the umbrella of real estate,” says Arora.
A second generation developer Nikhil Hawelia, Managing Director of Hawelia Group saysthe core of the business remains the same but functional difference can be said in terms of use of technology. According to him, living in an era where new technology is coming or changing very fast, the second generation keeps pace with the developments. They try to bring in innovation, technology and international aspirations into the world of property that has been rather old-school so far.
“I do not agree that second generation lacks the understanding of ground realities of real estate business. To some extent it also depends on the natural instinct of understanding the nuances of real estate business. If the person has right understanding of the business and organizational skills, he or she can be seen as a right person to take bigger responsible role for the company,” says Hawelia.
In contrast, a first generation developer in Noida real estate, Abhay Kumar, CMD of Grih Pravesh Buildteck says the second generation developers get most of the things in plate by their fathers and forefathers.
The first generation developers have provided deep pockets to their successors where they have ample margin to commit errors and keep trying till they get success; at the same time they get huge experience of their predecessors easily available. Combination of funds and experience of their father creates ground for success.
“Second generation developers are usually not nurtured from the scratch level whereas the first generation developers are extremely hard working and also they enjoy good relations in the society which is an added advantage. Second generation developers are usually too professional, lacking the in-depth knowledge of the creation per say. They are in general well educated but not well trained. It has been observed that the human values are less in the second generation developers compared to the first generation ones. First generation developers try their best to nurture their children to become the best suited for the succession but mostly they are not able to hone overall skills,” says Abhay.
What can be vouchsafed is that the transition has not given any case study of success to the Noida market. In some cases the baton has been passed to the next generation pretty successfully, while in most of the cases the first generation is busy in grooming the generation next.
Some of the second generation developers have actually been credited with the skyline of Noida getting changed drastically in recent times. The city has witnessed some exceptional launches & construction of projects. But overall the large share of second generation developers are yet to arrive and are mostly living in the shadow of their fathers.
