Vikas Rikhye,Realtor and Real Estate Blogger
Gurgaon might lose its grip over the booming I.T. Industry As it is understood from sources that many of the major BPOs are very seriously thinking of an alternative of relocating from Gurgaon to smaller cities mainly due to following reasons:
- Soaring rate of office space rentals
- Traffic jams resulting delay in the working of call centre staff.
- Heavy Transportation cost of staff
- Expensive living cost for the staff
- Higher operating cost
Moreover the cost and talent pressures will drive vendors to smaller cities at a faster rate. Especially so or new centers of large companies already present in India. With improving attention to education across India and State governments’ recognizing the potential of the outsourcing sector, companies are finding themselves almost attracted towards fresh location choices. Proximity/connectivity to larger cities and good education infrastructure seem to be guiding the discovery of other destinations like Udaipur, Jaipur , ,Mohali,Pune Bhopal, Vishakhapatnam, Nagpur, Chandigarh, Ahmedabad, Nashik, etc.
The emerging hot spots are also offering:
- Competitive talent at lower wages than the preferred locations
- Infrastructure and realty advantages
- Lower attrition
- Lower operating costs
Since all the major activities in Gurgaon are focused on I.T. Industry therefore it gives an alarming siren that with the changing trend of relocation might create adverse effect on booming economy well as the realty in Gurgaon.
Vikas Rikhye, Real Estate Blogger and Consultant
I have been studying very closely the concept of Offshore/ BPO operations & my study included the sources like News papers ,I.T. Magazine , Internet surfing , attending I.T. related seminars etc.
As we all know that Business process outsourcing (BPO) is the act of giving a third-party the responsibility of running what would otherwise be an internal system or service. New challenging technology in India is BPO industry. India became very popular in Information Technology.
In recent years, India has emerged as one of the most favored destinations for outsourcing because of a large English speaking population , Talent and Cost effectiveness . India has also gained recognition in the last 10 years as a stable and well-managed economic PowerPoint .
India is a true pioneer in the BPO. In the early 90s, India first started by offering outbound service to customers in US, Australia and other countries. .
Over a period the industry grew and matured, so India strengthened a very strong element of inbound centers. India is answering to the customer’s customers, which is a complex service but is done here for quite a while now. India has significant advantage over other countries with its I.T Talent and language skills.
Pacific region, as I understand from Frost & Sullivan study the number of contact centre agents in this region will grow to 3 million by 2012. Among them, 35% would be outsourced agents.
Finally summing up ,I strongly feel that India has the advantage in technical skills, language knowledge; the low cost of labor & it is the biggest advantage for large scale outsourcing.
India has to remain vigilant ,as there are now challenges from some other countries like Philippines, Thailand, Vietnam, and Indonesia, which are also offering low cost operations. India has the pressure of cost cutting, infrastructure and quality of service against these countries.
Vikas Rikhye,Real Estate Blogger and Consultant
In my earlier article: DLF on a path of multi dimensional Growth,Part-1 , I had mentioned that DLF Group started its primary business with developing Residential & Commercial properties. Today it has a proven track record of sustained growth for over 60 years, with over 1 million satisfied clients & with estimated 738 million sq ft of land across the country, makes DLF 5th largest Real estate company of the World.
Now, from sources I learn, that -DLF Ltd India’s biggest developer, will spend $5 billion in the next seven years to build about 125 hotels in the world’s fastest-growing tourist destination. And it is understood that DLF plans to build 25,000 rooms including 4,000 in the first three years.
While, DLF has a joint venture with Hilton Hotels Corporation ,the second-largest U.S. lodging company, to develop 75 properties. As stated by me in my earlier article. . DLF purchased Aman Resorts Group in November, giving it control of more than 22 properties in 12 countries. Aman Resorts will open a hotel in New Delhi this year.
The internet sources add that Spending and investment on travel and tourism will rise remarkably in future annually in the next decade, according to the according to sources India, Asia’s third-largest economy, needs 100,000 rooms and 10,000 to 15,000 are being developed each year.
Progressing ahead DLF Ltd carry the slogan “Building India”
Continued to DLF on a path of multi dimensional Growth ……Part-3
Vikas Rikhye,Realtor and Real Estate Blogger
To give a boost to Foreign Direct Investment (FDI) in real estate, the government may consider the proposal of the department of industrial policy and promotion (DIPP) which has circulated a cabinet note proposing to liberalize the existing norms.
The proposal framed by the department of industrial policy and promotion (DIPP) has mainly the following features:
- Proposing waiver of the three-year lock-in period on foreign investment.
- Waiver of minimum investment criteria of $5 million for joint ventures or $10 million for wholly-owned ventures.
According to sources, at present, 100% FDI is permitted in hotels and tourism as well as real estate. However realty FDI faces a three-year lock-in-the investor cannot sell his stake during this period. If one wishes to exit before three years, one will have to take the permission of the Foreign Investment Promotion Board (FIPB).
It is understood that the waiver has been sought for real estate projects, including hotels. The proposal has been justified on the ground that it would boost tourism and hospitality, sectors identified by the government as vital job creators.
Vikas Rikhye,Real Estate Blogger and Realtor
*Architect Hafeez Contractor A.I.I.A. G.D.Arch, M.S.Arch & U.D.(U.S.A.)
Started his academic career in1969 and completed the 1st phase of his academic studies in 1975 with Outstanding Distinctions and during this period he won several Design Awards.
For almost 9 years he worked as Architect/Urban Designer in private Architectural firms in Bombay & from June 1977 to February 1982 he had been associated with M/s. Khareghat and Associates as Associate Partner.
He had been a visiting Lecturer in Academy of Architecture Bombay from June 1977 to June 1980.He adopted a path of success in the year 1982 by starting his private practice & then he never looked back, He also won Priyadarshani Award for Excellence in Architecture in the year 1998
Some of his major projects included Bayer India House Corporate office, Osho Commune, Hiranandani Garden & Office Park, Appolo Indraprastha Hospital, DLF Centre, Russi Modi Centre for excellence ,Le Meridien , DLF Beverly Park, ,DLF Plaza Tower, DLF Corporate Park etc…
Hafeez never restricted working on Architectural Projects as his working included Hospital ,Hotels ,Resorts , Institutional Projects , Commercial Complexes ,Industrial and Residential Buildings etc
He reached the peak of glory & fame after successfully completing several prestigious project. he had become a favorite of developers like DLF ,Hiranandani and many others in the country.
There seems to be interesting turn in his career graph,because he may have to face a stroke of challenge, as we hear that Global design-focused real estate development company ‘Yoo by Starck’ has entered India. As its first project, the European company is designing a huge residental condominial worth Rs 1,500 crore with Panchshil Realty in Pune.
Their first project named ‘Yoo in Pune’ it is understood that after Pune they will be launching a similar scheme in Gurgaon on an 18-acre piece of land, This will be followed by projects in Goa, Bangalore and Mumbai.
It is understood that Yoo by Starck Chairman John Hitchcox announced this during a press conference in Pune. Yoo, a design marketing and branding development firm, has presence in 21 countries. Yoo is presently constructing 41 projects around the globe at Rs 40,000 crore.
Continued………………………………………………. in April 2008
Mr. Vikas Rikhye,Realtor,Real Estate Blogger and Real Estate Promoter
Despite the fact that countries like U.A.E (Dubai) Australia, New Zealand & others are making best of their efforts to attract foreign investors to invest in real estate sector but the fact remains that US. China & India are the preferred ones’
According to a survey conducted by Association of Foreign Investors in Real Estate (AFIRE), amongst the global investors, US has retained its top position, while China ranked 2nd followed by India ranking 3rd.
It is understood that in the current survey China moved to second place with 21.4%votes & India was preferred by only 16.7%, whereas in 2006, China got 14.6% votes while India had 18% and was ranked in the second position.
The investors confidence seems stronger in China, apparently because of better appreciation chances offered as compared to opportunities in India.
On the other hand, the US, whose economy continues facing the threat of a recession, still managed to retain the ‘most preferred destination´ tag for real estate investment.
Since now India is growing ahead with overall progress in real estate & infrastructure ,we, therefore look forward to its ranking as No-1
Vikas Rikhye,Real Estate Blogger,Real Estate Promoter and Realtor
On 15th Feburary the Government of West Bengal has given possession of 12500 Acres of land (at Nayachar Island) to developer PCR chemical for developing Chemical SEZ
According to sources,PCR Chemicals Pvt Ltd is a joint venture between New Kolkata International Development (NKID) Pvt Ltd and West Bengal Industrial Development Corporation in which the former holds 51% and the latter 49%.
The New Kolkata International Development (NKID) is a consortium between Unitech (40%), Salim Group of Indonesia (40%) and Universal Success of Indonesia (20%). It entered into a development agreement with West Bengal Government for development of mega infrastructure in the State of West Bengal.
Thus it gives a dominating edge to Unitech and the news resulted a positive boost to Unitech in BSE
Vikas Rikhye,Real Estate Blogger
Gurgaon has become a “Hub for Multinationals” and it has emerged as very well recognized destination for the corporate world.
The rentals rates for Commercial space in Mumbai & New Delhi had always been a guiding and driving force behind Gurgaon’s commercial rentals.
While Delhi has broken its own record of expensive office with rentals in Connaught Place, almost touching Rs 400 + per sq.ft. per month at the same time Mumbai has proved to be 5th most costly office space in the world.
According to a survey conducted by a global Real estate consultancy firm, Nariman Point in Mumbai is the 5th most expensive office location in the world as the rentals here have zoomed almost 60% bringing the rental figure to as close to Rs 550 per sq.ft. per month.
Gurgaon in its own way, is not left behind, as Prime commercial properties like Cyber greens , Unitech’s Cyber business park & locations like Golf course Road ,NH-8 have also witnessed an estimated growth rate of 47% with commercial rentals rising to Rs.120-130 per sq.ft.
It is understood that India has gained a reputation as one of the best performers in office space market in the world with an average rentals growing around 35% as against an average increase of 25% in Asia -Pacific region , US rentals increase of 18% whereas Europe witnessed 14%.
I wonder how long this trend will continue in Gurgaon , as it is understood that over 35,00,000 sq.ft. Commercial office space in Gurgaon is under construction which would be ready with in next 18- 24months.
Vikas Rikhye,Real Estate Blogger
Dlf Group started its primary business with developing Residential & Commercial properties.Today it has a proven track record of sustained growth for over 60 years, with over 1 million satisfied clients & with estimated 738 million sq ft of land across the country, makes DLF 5th largest Real estate company of the World.
DLF group now with a slogan of “Building India” have recently forayed into Infrastructure, SEZ and Hotel Business as well .
In November 2007,the news of DLF’s plans to affiliate with Aman Resorts, with an objective of acquiring controlling interest ,gives a clear indication of DLF finding firm footing in Hospitality Business as it is understood that on completion of entire transaction, it is estimated to be valued at US$ 400million. As I believe that Aman Resorts is world’s one of the leading hospitality & lifestyle organization, presently operating 22 luxury hotels in almost 12 countries.
As it is understood from sources that in August 2007 DLF group had entered into an agreement with “Four Seasons Hotels and Resorts” to start a luxury hotel in DLF Golf links Gurgaon, targeted to open by end of 2010.
It is further added by the sources that DLF’s vision of acquiring, developing, financing & managing high quality hotels is further strengthened by its plans of a JV with Hilton Hotels.
Besides as stated above it is also understood that in company’s future plans a large number of Hotels are under development across India.
DLF on a path of multi dimensional Growth ……
To be continued in( Part-2)
Mr. Vikas Rikhye,Realtor and Real Estate Blogger
A blend of Historical Heritage & Modern Technology makes Jaipur a most sought after destination for Builders, Real-estate promoters & Investors.
Multinationals and IT related companies have also started a thought -process of considering Jaipur to be suitable township for their future expansion.
Moreover, it becomes more luring & lucrative destination for all concerned with the following:
• In a close proximity to NCR having a very strategic location on NH-8, with fast developing infrastructure.
• The up gradation of Jaipur airport as “International Airport”.
• Liberal Government policies to encourage foreign investors.
• With opening up of SEZs (Special Economic Zones) , some of the well-known BPOs and IT companies have already started setting up their offices because of low operational cost as compared with other metropolis .
• The pre-existing infrastructure like Hotel etc has served as added benefit to overall growth and development.
With most visible progress, Builders like Vatika Group, Ansals & Omaxe etc are already showing their active presence .The prices of Residential and Commercial are showing upward trend.
It is understood , as per Market estimates in next 4-5 years, around Rs.1500 Billion is in the pipeline to be spent in Jaipur Real estate Sector itself. And according to an Expert ” Jaipur Real-estate market grow to double of today by 2010″ ……..
