Track2Realty Exclusive: Making the strategic shift of corporate in realty is not easy and getting things right is even more complex. Even though real estate business may not be the primary operations of several conglomerates who have entered this business space, sound corporate governance is based on more than just simple compliance with ‘universal standards’.
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Track2Realty Exclusive: India, although not by plan, is experiencing a boom in once relatively obscure cities. Its rising urban centers are not confined to four metro cities or Bangalore and Ahmedabad, and load on urban land and overall infrastructure demands India must take learnings from global experience of redevelopment.
Track2Realty Exclusive: The debate over promoter driven versus professional driven also brings to the table the fundamental question as to whether the entry of corporates into the business has changed the outlook of real estate in India. Have they brought about transparency and corporate governance?
Track2Realty Exclusive: On a closer look there are big and serious questions on the authenticity and prima facie it appears as if the categories have been customised to fit in the highest bidder.
Track2Realty: NCR retail real estate market remained largely stable as per the latest retail report from real estate consultancy Cushman & Wakefield. A few locations in both main street as well as malls saw some appreciation in rental values. Connaught Place (Inner Circle) recorded an increase of 12% while prime malls across Delhi NCR saw a positively rising curve following robust demand for the same.
Track2Realty Exclusive: There are some industry watchers who believe the entire genre of awards should not be dismissed just because there are few rotten eggs in the basket. Industry body NAREDCO thinks awards should be seen as recognition for the work done by the developer. “If a real estate company has earned an award, I think it should be respected by the industry and by the collective consciousness,” says Sunil Dahiya, Senior Vice President of NAREDCO.
Track2Realty Exclusive: The debate of promoter versus professional driven realty companies gained momentum in the year 2012 because high attrition at the top level of realty sector has been in the news throughout the year. The Managing Directors of Indiabulls Real Estate and Peninsula Land quit in the month of October. So did the real estate heads of two property funds, Indiareit and Everstone Capital. Most of them either moved to other realty companies, starting their own ventures or shifting streams to join consultancies.
Track2Realty Exclusive: Awards have often been the source of sulking within the business community. However, when it comes to real estate, one has got absolutely no reasons to sulk as awards are not just rigged but customised for the companies at a cost. Track2Realty finds while some buy it for recognition, brand promotion or just notional value; others dismiss the offer being aware that m0re than they needing the award, such trophies need their brand value for establishing credibility.
Track2Realty Exclusive: There is a school of thought within the sector which suggests the nature of the business is more suitable to be carried smoothly as promoter-driven. Though officially no one wanted to be quoted but some of the developers admitted to Track2Realty that the nature of real estate business demands more grounded entrepreneurs and not high flying professionals for whom more money in the sector is the only traction for job hopping.
Track2Realty Exclusive: Some analysts are of the view that in some other sectors people are vocal because they come from very powerful political background and are second generation entrepreneurs. Then, they are active at the federal level without any structural defect where policy at centre might help at some level and hamper at some other state level. Automobile policies, for instance, are framed for across the country.