5 Lessons Realty Developers Learnt From Slowdown

4. Regional developers are playing better

With the slowdown in economy and hike in construction costs, regional real estate developers have performed better compared to big real estate players. Regional players like Thakker Developers, Kolte Patil Developers, Puravankara Projects, Sobha Developers and Oberoi Realty have maintained better balance sheets than big groups in real estate. Besides, the market stocks of regional developers are also good than larger groups.

5. Partnership model making their way in

Real estate developers are accepting partnership model all over again due to the economic slowdown and high borrowing costs and partnership model is nothing but to develop property together with the landowner, according to Anshuman Magazine, Chairman and Managing Director (South Asia), CB Richard Ellis. However, developers started acquiring land to launch their projects and this started during the peak time in real estate market. But, the scenario is changing and developers are going back to partnership model to avoid cash crunch situation. When compared to other multi-city developers, Godrej Properties deals with a premium valuation as a result of its asset-light partnership model.