Millennium City’s Realty May See a New Scenario by 2020s
The Millennium City of Gurugram has emerged as a realty hotspot in the recent years. Top realty firms are leaving no stone unturned to launch their projects in the city, be it through a joint venture, public-private partnerships, mergers and acquisitions and the like. A steady pace of urbanization coupled with burgeoning workforce is among factors favouring it as a realty destination. The city has emerged as a leading financial and corporate hub with the third highest per capita income in the country. It also enjoys strategic location being in the proximity of national capital, New Delhi. A spate of recent infrastructural developments like upcoming Kundli-Manesar-Palwal Expressway has provided a fillip to its connectivity and given a boost to the real estate projects. Global giant Trump has already marked its footprints in the city.
Expert in the field Sachin Pant, CEO, Innovest says, “The real estate in India has witnessed a paradigm shift recently where developers are going for joint ventures and joint developments. Major markets are witnessing a major change – 7 major markets these are all regional markets. The market has seen lot of private equity players as well as overseas investors. The current trend has seen investment from oversees developers of US, Singapore, China, Korea and even Japan.” The sector can mainly be categorized into residential, mixed use and commercial which can further be divided into retail, IT sector and hotels. Nowadays there has been more interest in commercial properties as it is yield based and rental based.
A recent example of the same is of the iconic Trump Towers coming to Gurugram. Gurugram based leading luxury developer M3M India and Tribeca are jointly working on the same. The first day of the launch witnessed Rs. 150 crore sales.
Another example is of Brahma Center Development Pvt. Ltd. headquartered in New York, which owns the 12.206 acres of land at Sector 16 along the Delhi Gurugram Expressway. Their project Athena is being built on the same. It is a retail and commercial space spread across a leasable area of 1.3 million square feet.
The real estate sector presently has witnessed immense change in terms one or more developers coming together for the development of a project. Entering into the partnership, amalgamation, joint ventures and buyouts are some of the common trends in the real estate sector.
“This trend is more relevant in the present day because of RERA implementation which is customer friendly and has given an opportunity to both oversees players and Indian developers. This fundamental change in how business will be run in India gives a strong sense for joint development models and is a win-win situation for both of them,” added Pant.
Japanese conglomerate Sumitomo Corporation also recently tied up with Krishna Group, an Indian auto components major to develop real-estate projects across India. The JV’s first project will be an 18 million sq ft development in Gurugram with cost in excess of $2 billion. The project marks Sumitomo’s entry into the Indian real estate space. Both the partners will hold a 50:50 stake in the venture.
Many developers enter into the joint venture which provides a powerful outcome. A Real Estate Joint Venture (JV) plays a crucial role in the development and financing of most large real estate projects. It allows real estate operators (professionals who are experts in managing and developing real estate projects) to partner with real estate capital providers (individuals or organizations that can provide the capital needed for a real estate project).
With the projects being developed at a fast pace, Gurugram’s realty scenario will witness a massive change by 2020s.