Indian real estate companies who started international ventures in 2006-07 are revising their overseas agenda. With a decline in international realty, many domestic developers are retreating from weak markets or putting on ice global plans.
This re-assessment of development strategies has not come lightly. For example, the Raheja Group has decided to pigeonhole plans to build in Colombo and Mauritius and with the Hiranandi Group, a key player in Dubai real estate halting new enterprise launches to act as a contractual liaison in the completion of existing projects for other developers proves how developers are opting for self-preservation tactics.
Entering Dubai in 2007 with plans to expand into West Asia Omaxe has now entirely pulled out of Dubai. With a joint partnership with Nakheel, Dubai’s World property developer and an investment of Rs 50 crore (US $10,850,000) has now exited from the market due to near dormancy. Despite receiving their investment back, Rothas Goel, managing director and chairman of Omaxe explained that with a Nakheel placing projects on a permanent hiatus Omaxe has no future plans to build outside of India.
But not all companies are weary about the market slump. Tata Housing has plans to embark on projects based in Colombo, Sri Lanka. Already prominent in the Maldives, Tata House has invested Rs 1,000 crore (US $217,000,000) for an array of ventures for 2011-12.
Whether a company is demonstrating precaution in international property development or acting with confidence in continual investments and expansion, it is advised by real estate consulting firm Cushman and Wakefield for companies who have over extended themselves to “focus on their core strength.”
Source: http://www.property-report.com/site/international-real-estate-expansion-halted-for-indian-companies-18130
No comments:
Post a Comment