The Hindu Business Line : ‘Consolidation good for realty sector’

Bangalore, Sept. 5 A robust economy and a bullish real estate sector have made consolidation the way forward for the real estate sector, said Mr J.C. Sharma, Managing Director, Sobha Developers.

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. As we move forward, only large players with superior performance can survive,” he said.

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,” Mr Sharma said. 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.”

The future for Sobha Developers in particular, he said, will see the company looking at centres such as Pune and the National Capital Region. “By the end of the financial year, we hope to have presence in cities such as Pune, Coimbatore, Mysore and Chennai,” he said, with a mix of commercial and residential projects.

More projects

A 40,000-50,000 sq ft commercial development in Pune and 75 villas over 12 acres will be launched in Coimbatore soon after, Mr Sharma said. Next, a couple of projects — residential and commercial — will be launched in Mysore and a residential project will be launched in Chennai, all by the year-end, he said.

“The aim is to have a pan-India presence for Sobha Developers in the real estate business, just as our contractual business,” he added. The Sobha Group is currently handling 20 million sq ft of its own projects and also contractual activities.

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