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Will this development allow the global players to capture the Indian real estate market in the days to come? Let us have a look at these and related issues.

The real estate boom, the entry of FDI, the lure of luxurious living, stylish villas, mega commercial establishments and large malls have thrown up new challenges to designers and builders, as global standards are sought in the present millennium.

World class designs are not really required to be replicated, but international standards in plans, design and safety and use of newer materials that make financial sense need to be brought in to secure a fair share of business for local architects and designers.

If the local talent is not able to rise up to global standards, it goes without saying that our experts will lose out to ‘imported’ talents.

The positive side is that integration of local talents will become necessary, especially because they will be in the know of local codes and regulations, especially with respect to local ground realities and social beliefs like vastu.

All said, there is a need for integration of global and local talents which will also satisfy local ethos. There are more than 30,000 architects in India, 80 per cent located in large cities.

There are large firms with decades of experience, of which a negligible percentage is trained abroad. The council of architects is reported to be aware of the challenges ahead, especially with the impending large scale FDI participation in Indian real estate.

Let us first take the case of the land owners. Most of the owners of land in the cities today are second and third generation ownership holders.

Some of them are P.A holders or benami owners. They are looking for higher prices for their holdings. May be in villages or small towns one can find joint family owners enjoying the ownership by possession.

Many co-owners wait for partition and full title. These people have a lot of stake in the properties.

If Indian developers and promoters do not have the inclination to pay the market price and buy these properties, either FDIs or NRIs will come forward and offer lucrative rates, whereby the Indian ‘entrepreneurs’ may go out of business.

As far as the developers and builders who are the real stake holders in the chain, the competition can create a whole lot of problems, as they are indigenous products.

Their challenge will be with the FDI / NRI promoters. In a limited number of cases like the ITPL, Bangalore and ILABS, Hyderabad, only international companies like Metro Corp and Jurong consultants have been involved. Yet DLF securing the contract for building Bidadi high-tech city near Bangalore can be considered a positive development.

As regards contractors, sub-contractors and maintenance agencies are concerned, they are minor stake holders and the high flying international companies may use their services by way of sub-contract.

Major real estate companies who have invested large sums in pre-development activities may be the losers in a competition with global players. Those who have gone public recently or MNC collaborator companies who have tapped the Indian equity market can face set back in terms of equity prices.

In case global tenders are floated for real estate related work without any restrictive clauses, there are chances that Indian developers may lose out on the quotes.

Of course, the modernisation work relating to Delhi and Mumbai have not gone to any global player which can be a matter of some confidence.

Large Indian outfits can take refuge under such developments, but the small and medium operators, in all probability, are likely to suffer.

Instead of viewing the entry of global players as a threat to India, either in designing or executing major work, it can be treated as an opportunity, by upgrading local abilities and training personnel in rising standards across the globe and even competing with other countries to secure business across continents.

Our neighbouring countries in the Asian sub-continent, Middle East and Africa may offer a platform for talented operators where Indians need to invest their know-how in contributing to their science of construction.

Present day Indian engineers are no less knowledgeable and capable than those of other countries, and this is proven with several examples such as the execution of Konkan Railways and Delhi Metro.

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