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Old 06-09-07   #1
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Default Consolidation good for realty sector

A robust economy and a bullish real estate sector have made consolidation the way forward for the real estate sector.

Consolidation of existing players will mean that customers get a better product and price, and for the developer, it means access to more funding. Larger players can identify with end-customers and match their expectations with superior performance. In this type of market only large players with superior performance can survive.

The Government’s clamp-down efforts are only good for the sector, since they ensure that in the name of momentum the direction of growth is not lost. The Government’s measures are only for regulation in the interests of the investor. These will ensure that weaker players are eliminated in the long run. This is good for consolidation.
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