Potential for property management companies in metros

With the continued migration of residents both within the country and abroad, investors in real estate have been finding it difficult to manage their properties during their absence. There were few options except to rely on relatives or friends for such needs. But times are changing, especially with India liberalising investment norms by foreign companies. One area that has virtually caught the attention of the foreign companies involved in property management is the huge potential at metros and secondary towns.

A number of MNCs have set up shows in metros and tier II cities across the country to provide property management services. This is not only beneficial to the NRI globetrotters but even to residents who are compelled to shift their work places across the country. Though, no precise data is available on the size of the industry, industry sources estimate it as a billion dollar business given the volume of units available, value and the growing need for such specialised services in this sector.

Software and management systems, minimising legal exposure by using best industry practice management, procedures, skilled manpower to handle varied jobs are major strengths that differentiate professional players from others in the industry. “About 30% of our business revenues come from property management services”, says Alexander Moore, Chief Executive Officer – India, LJ Hooker, in Bangalore, which is planning to extend its network to Chennai.

“The growing importance of property management services should be realised not only by the end users but by the property developers and architects at the project implementation stage itself,” points out Christie Cherian, Managing Director, Red Sky Property Services, in Chennai.

A number of MNCs have already entered the Indian market. LJ Hooker, Red Sky, Ray White, Remax, among others. Industry sources point out that there are 12 major international brands providing similar services are likely to enter India in the coming years. The range of services includes preventive maintenance, placement, contracting, response maintenance, signage, commercial cleaning, pest control, annual maintenance contracts, health and safety.

In countries like Australia there are five companies for every 30,000 to 40,000 households but in India companies like LJ Hooker are aiming to target one unit for every 500,000 households. Being a consumer driven business, if companies meet the specific needs of homeowners, Indians, particularly NRIs, will heave a sigh of relief while investing in real estate.

Source: http://content.magicbricks.com/potential-for-property-management-companies-in-metros