Retail a key driver pushing demand for real estate

January 2, 2007	(3 votes, average: 1 out of 5)  Loading ...
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A number of potential investors from every part of the world have been drooling over Indian property market potential for the past few years. Corporate are trying to encash on the prospects from every conceivable angle. Aiming the same target, they are now planning to make real estate a part of their core operations.

Whether it is holding stakes in unlisted small companies with realty interests or improving the memorandum of association, conglomerates are undertaking every effort so as not to leave any stone upturned to accomplish their goal.

Gulf Oil, one of the seven sisters oil magnates and a major global oil company, has announced its plan to carve a niche in Indian real estate. The company is ready to diversify into realty to unlock the potential of realty assets, says Subhas Pramanik, the GOCL Managing Director. The company also has plans to invest in development of knowledge parks and special purpose vehicles for the growth of infrastructure.

Next, it is Shree Pre Coated Steel which is eyeing on developing growth from real estate. It has recently announced to get hold of 35% of Jolly Brothers, a company with leasehold right for 66 acres in Kanjurmarg in central Mumbai.

As a matter of fact, there is a long list of companies that has profited from recent realty boom. Wind energy company BF Utilities is among such and so has ceramic tile maker Anant Raj Industries. Real estate has made up for 85% of the company’s revenue in the second quarter and the company holds about 800 acres of land, revealed by Amit Sarin, Director of Anant Raj Industries.

The retail market is believed to hold the steering of booming real estate and is likely to shoot up to $35 billion by 2010 from the current $7 billion, as per the data revealed by various property surveys.

News Published Under:   Real Estate India |

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