Comparison of the roles played by the Property Consultant in India & USA

     Unlike in the United States where you have one agent for one property - in India         there is nothing like that
    Most buyers and sellers both talk to several brokers with regard to their intention
    The brokers in USA need to have a license to practice - in India we have no such         law
    Brokers in India are not qualified to handle government documentations etc. and        depend on a solicitor / lawyer

       Strengths

         After United States, India is home to largest English speaking manpower
         The Indian Economy is now ranked 12th in the world in terms of GDP
         Large and growing domestic Market; increasing purchasing power and             consumerism
         Provides opportunities for competitive advantage (low cost sourcing of products             and services, exceptional quality, intellectual skills, etc.)

       Weakness

        Bureaucratic hurdles and government processes resulting in a difficult operating            environment
        Low average disposable income, a highly dispersed population and distinct tastes            from the rest of the world
        Weak infrastructure in terms of roads, power, and port facilities

     Difference in Property Style & Living between India & U.S.A.

        Layout of most of the existing, older apartments is designed for the Indian way of            life, except for the emerging apartment blocks & serviced apartments which have a            global appeal. (According to country needs)

        More of apartments than independent houses

        Emergence of apartment blocks & serviced apartments focused purely on lease to            expatriates

        Dependence on stand-alone recreation clubs for amenities such as club house,            pool & recreation for kids - except for a select few projects

        Intra-city travel is an ever growing challenge on your time schedules, although the            state is doing its best to ease the same by building flyovers & sub-ways

        Daily needs Supplies- In an emerging era of super & hyper markets - local stores            still rule owing to their absolute proximity to residential hubs

The advantages of investing in India as compared to investing in International Markets…

    Estimated achievable Return on Investment (ROI) per annum at current capital        valuations (Rental): 8% to 12% pre-tax
    Estimated Capital appreciation on possession (18-24 months): 25 -35%

Experience India:

Expectations vis-a-vis Reality

Expectations

    Independent House / Bungalows
    Easily affordable

Reality

    Apartments / Buildings
    VERY expensive – especially Mumbai!
    Poor Infrastructure Quality
    Extensive Travel Time


Educating our customers to the best possible manner and let them know the market dynamics is the way we like to operate

When the IT/ITES industry started searching for space to set up operation, Mumbai, Bangalore and Delhi scored high on the preference list. The apt real Estate arrangement, sufficient infrastructure and a huge pool of qualified and proficient manpower made them the obvious location of preference. The attention of the corporate world also turned to tier 111 cities with vast land resources, available at economical prices and backed by favourable Government initiatives.

The study is based on the most crucial seven driving dynamics one should look in real estate investment.

Manpower Accessibility

Appropriate and adequate manpower skills are mandatory for businesses to prosper. An added advantage is the proximity to this manpower pool. The equation computing the manpower availability is the weighted average of total number of engineers graduating from AICTE-approved engineering colleges in each city and the total number of enrolments in each university, indicating the total number of graduates in each city.

Realty Outlay

The cost of a location becomes an important consideration to make the city a preferred destination. To establish the development centers, IT/ITES organizations could choose to move away from CBD, in expectation of reduction of costs, also contributing to the bottom line.

New Supply

A locations Demand-supply equation greatly influences its rentals and capital values. Sufficient and superior officer space essential for a business to firmly establish its roots in any location. At the measurement of this component is the new supply coming at the location/city.

Cost of living

A city’s economy is certainly a big turn on or turn off. Cost of living is critically considered before migrating to or from a place. This factor greatly influences the manpower cost, the average rentals and other aspects. The Consumer Price index of various cities assists in measuring a city’s cost of living.

Manpower overheads

A significant contributor to the expenses of the P& L account is as manpower cost. It’s as high as 70% for the IT enterprises manpower cost is around 73% of the total Software development expenses], 18 % -22% for the banking sector and 3%-5% for pharmacy / FMCG sector. Corporates offer benefits like HRA cost of living allowances, supplementary allowances, etc making manpower cost the decisive factor.

Infrastructure

Amenities like public transport facilities, road networks, connectivity to other parts of the country, congestion number of people per sq.km. of space and flyover immensely effect the decision to choose a particular city, in terms of works or setting up a business.

Social Security

The final consideration making a location favourable for business is the city’s law and order and the safety of life and assets.