Realtors joining hands with global conglomerates as real estate momentum picks up, says Raman Gupta

Indian realtors are roping in global realty firms, property management firms, says Raman Gupta, Director, Branding & Construction at GBP Group.

The pandemic is known to cast a dual effect on the businesses all around the world; on the one hand, it has brought disruption, while on the other, it has hastened the pace of technological upgrades, M&A’s that would have otherwise taken years to get completed. Indian realtors are roping in global realty firms, property management firms for upscaling their services and products.

When the sector is battling myriad issues like supply chain disruption, labour retention, delayed deliveries, these tie-ups with global conglomerate act as facilitators for improved work practices and result-driven outputs. Since, the local players are familiar with the procedure involved, the global firms are being associated to bring in a calibrated approach for the segments of construction technology, leasing, marketing, and post-sales services.

Liquidity issues at bare minimum

The sector is healing from the aftermath of pandemic, and liquidity issues remain stable due to the distortions in the economy; however the involvement of global investment firms has given them an upper hand in being the investors for the stressed projects, executing mergers and acquisitions with coordination and support from experienced local players in India. Also, these tie-ups give the global firms an edge in expanding their geographical base and services offered to a wider set of customers, thus building their overall portfolio.

Flexible partnerships

Well established local players only need limited support from these conglomerates; the tie-ups are generally flexible in nature and limit global players’ involvement in just few of their projects. It gives Indian players an upper hand in declaring complete ownership of certain projects; this also protects them from complete takeover and commence a new era of business partnerships that will be based on financial closures for certain high-end projects.

Facilitate future investment opportunities

Developers understand the value of an asset therefore are keen on holding onto their lands, but at the same time, with these corporate tie-ups, the arrangement also remains on attracting a series of international investors who wish to establish their presence in the developing market of India.

Thus, these corporate tie-ups and partnerships with global conglomerates herald in a new era of business development, investment and management in the real estate sector of India, commonly perceived as primitive in its outlook and functioning.

Keep watching this space for more updates.

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