Indian Realty Cos Drop Their International Plans

Bangalore: Real estate companies which have plans to make profit in overseas market are now reviewing their plan to stay fixed in India. With the increased growth in economic crises, it is been observed that International real estate markets is waning and many domestic companies are either retreating from overseas markets or putting their international plans on hold, reported by Dilasha Seth of Business Standard.

Some prominent developers who are re-evaluating their development strategies are Raheja Developers, who have dropped their plan to penetrate into Mauritius and Colombo real estate market; Hiranandani Group, which holds an important presence in Dubai are now altering their strategy in overseas market and they have also restricted their new launching projects to concentrate on their on-hand projects for other developers on an agreement basis; and Omaxe, has already made their move to leave Dubai. After investing a huge amount in a joint project with Nakheel, Dubai based property developer; Omaxe withdrew the project due to near tranquility. Rothas Goel, managing director and chairman of Omaxe stated that, Omaxe has got their investment back as Nakheel has put the projects on hold for an indefinite period.

Nayan Raheja, director of Raheja Developers, observed that the international market is not showing any positive results eventually compelling the Raheja developers to cut down their entrance in Mauritius and Colombo market. According to him, the realty market of Dubai would not recover in next five years. Nayan said “There is negative sentiment internationally. At this point, we are not even considering venturing out,” reports Business Standard.

On the other hand, there are companies which are unaffected by the falling market such as Tata Housing, which is looking forward to enter into the international market at present. After making its existence in Maldives, the company is headed towards Sri Lanka to flourish their business in realty market.

Brotin Banerjee, managing director and chief executive of Tata housing stated that “We are confident of finalizing a few projects in Sri Lanka this financial year — Colombo will be one of the locations. All these international projects are being planned through separate special purpose vehicles formed for each country or project”. He also said that “We work on a multi-city strategy and projects targeting all customer segments and hence, a slowdown in some geographies or customer segments does not adversely impact us,” reports Business Standard.

At present there are companies which are taking precautions by withdrawing projects from international markets and there are companies on the other hand which are confident to continue further with their projects in this present market situation. Sanjay Verma, Cushman & Wakefield’s chief executive for Asia Pacific, quoted that, “For those over expanded, it would be a sensible move to focus on their core strength at this point”.