Need for a revolution that will see the poor get access to housing is more eminent than ever before, and that, in such a revolution lies a great business potential for the realty sector. This was one of the strong messages that emerged from the South India Real Estate Conference, 2012, inaugurated in Bangalore on Friday, July 3.
CBRE Group, Inc. has announced that the company has been recognized as the #4 outsourcing services provider across all industries, and the highest-ranked real estate services company, according to the International Association of Outsourcing Professionals’ (IAOP) Global Outsourcing 100. CBRE is the first real estate services firm to break into the elite top 5 on IAOP’s list. The firm improved its ranking from #6 in 2011.
In India, considerable improvement has definitely taken place over the years with respect to the legal framework which encourages inflow of foreign capital. But, despite significant progress, issues such as liquidity and title ownership continue to act as constraints to cross-border investor activity, along with high transaction costs which have resulted in keeping direct investments at bay.
Real Estate is at the epicenter contributing to shape up today’s world. The construction industry is also treated as the backbone in a developing country like ours but in recent times it has been seen slowing down by low margins, negative cash flow from operations, rising interest costs on high working capital , execution delays and poor corporate governance.
The building approval process in India is relatively slower and more expensive in comparison to several other countries as indicated by a recent World Bank assessment. The report highlights that an average 37 procedures over a period of 195 days are needed for obtaining construction permits in the country vis-à-vis 15 approvals over an average 157 days in the OECD region.
Greater emphasis needs to be awarded to project delivery in light of the human, physical and monetary resources that are lost as a consequence of such delays. Even in the most robust economy, the challenges involved in construction and delivery of projects are enormous. There are common worries focused on timeliness, costs, performance and delivery. Stakeholders involved across the development process are often insufficiently coordinated to deliver a finished product within budget and on time.
As the real estate sector in the country stands at a critical juncture, the performance of this sector will be largely governed by the following drivers.
One of the main features of the real estate ecosystem is transparency. However, on the contrary, the market is considered as an information-inefficient market, where seller tends to provide less information to the buyer.
Wave Inc has engaged IBM to provide a roadmap to make its green-field township, Wave City, a smarter township. Located in Ghaziabad (Uttar Pradesh State).
Jones Lang LaSalle has been named as one of the world’s top 100 outsourcing providers as part of the 2011 Global Outsourcing 100, the annual ranking of high-quality service providers across all industries as determined by the International Association of Outsourcing Professionals (IAOP).