DLF, Indiabulls tying up with foreign players

The real estate market is evolving at a rapid pace in India. With burgeoning volumes and rising real-estate prices, developers are working out new strategies to meet project deadlines and stay on top. Large developers like DLF, Ansal API, Indiabulls Real Estate, are now tying up with international construction players to ensure timely delivery of projects. About 802 million square feet is under construction currently.

In the past, they were entirely depended on domestic construction majors. A rising number of infrastructure, industrial and real estate projects have, however, led to a capacity crunch in the construction industry.

DLF, for instance, has formed a joint venture with Laing O’Rourke for construction activity. Ansals have has tied up with Malaysia-based UEM Builders and Indiabulls Real Estate is working with Europe-based Strabag SE. These ventures have been formed to resolve any problems over delay in projects.

“Besides speeding up the project delivery, these experienced international companies bring the best of construction techniques, large floor plates and marquee projects development skills,” says DLF group executive director Rajeev Talwar.

Developers are tying up with top domestic construction companies who can match the global peers in quality and delivery.In fact, the real estate boom has translated into bulging order book for established construction majors like L&T, Shapoorji Pallonji, B L Kashyap, Ahluwalia Construction, Patel Engineering and others.

One reason for such tieups is that project execution is now emerging as the key differentiator between the top-notch developers and the so-called ‘fly-by-night operators’. A deal with a construction major provides developers — and contractors too —skilled manpower and adequate supply of materials. It works well for the construction companies too.

While international companies get an entry into the booming Indian real estate arena, domestic firms get a pan-India presence as well as branding via association with top-notch developers’ projects, points out real estate consultant JLLM India head Anuj Puri.

It may be a fast-rising trend, but not all big developers are mulling construction tieups with foreign — or Indian — players. Companies like Omaxe and Sobha Developers believe that scaling up will not be a tough task. “We have the work force and the capabilities and we are prepared to meet our deadlines,” says Omaxe advisor-corporate strategy Brijinder Ahuja.