Real Estate Developers are facing unpleasant days for one thing at least. The construction costs have increased by 10-15 per cent annually on account of building contractors raising their fees.

On one side there is real estate development boom and other side it is shortage of contractors and consequently the workload. So our dear contractors are easily able to fetch more fees from their developers.

Property prices are touching skies. Cement and steel prices have also seen good increase, and the total cost of construction has gone up by as much as 15-20 per cent. Ultimately this burden of developers will only be passed on to the consumers means ALL OF US

“When I told my contractor that I was planning a commercial project, he told me to quickly place the order. My architects had not even designed the building, but the contractor still wanted me to hire him. He warned me that if I took too much time, his work load might not let him do my construction. That is how serious the problem is,” says a builder from Kolkata.

To combat the problem posed by the lack of contractors, a few realty firms have forged joint ventures (JV) with foreign construction companies. DLF Ltd last year set up a 50:50 JV with Laing O’Rourke, an infrastructure-cum-construction company based out of the United Kingdom.

Recently, Emaar MGF forged a JV with Leighton, an Australian construction company.

Ansal Properties and Infrastructure is now investigating for a JV partner. “We need to address the problem of contractors having too much workload. This is why we have decided on a foreign joint venture,” says Ansal.
Read more
Reply
0 Replies
Sort by :Filter by :
No replies found for this discussion.