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The headaches of real estate development can be entrusted to professional agencies who will provide all-in-one solutions.

Let us first attempt at listing the headaches. The issues involved in implementation of a property development project may comprise the following:

•Identification of suitable land for development.

•Clearance of title of the identified property.

•Appointment of architect for the drawing plan and to prepare estimates.

•Obtaining approvals from various authorities.

•Sales promotions and advance booking.

•Finalisation of work contracts.

•Procurement of materials.

•Funds tie-up.

•Supervising arrangements.

•Maintenance arrangements.

Most of the real estate activity in India centres on families of promoter-builders. Such activities are carried out by major members in each family with no specified area demarcations. This set-up has been found viable in small and medium projects, whereas in bigger projects experienced hands have to be hired to assist in the execution of work. In any case, the projects may cover only an a area of a few thousand square feet, say 25,000 sq ft to 50,000 sq ft.

Mega projects involving development of a few lakh square feet of built-up area require professional management personnel to handle critical factors, such as a huge fund layout, time lag in execution, materials handling, marketing and maintenance.

Where do we get the experts? Isolated recruitment of professionals may be one way. However, effective implementation of mega projects will require people of proven ability. An experienced builder firm may be in a better position to plan and provide coordinated services for the successful completion of present-day issues.

One company claims to be developing the muscle power required to provide global services, such as investment assistants, procurement of materials, supervising construction and so on. Its plans include recruitment of architects, engineers and fund managers with global know-how. This is the practice in many countries and the growing real estate sector in India will have to necessarily fall in line.

What will be the implications of engaging management service providers? High quality management will, of course, provide high quality construction and development. It will need a higher pay package and professional fees. This will jack up the selling cost and the consumer has to bear it. In a globalised economy, the ability to take a higher cost for the product cannot be grudged. The poor are, of course, out of the race. The middle-income group will have to look for third and fourth-tier cities.

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