Real Estate Developers’ Craze for SEZ

April 9, 2007	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

The arbitrary cap of 5,000 hectares on multi product Special Economic Zone (SEZ) does not seem to be a major hurdle for real estate developers. They are well determined to pursue their plans and most of them are expected to hit the street over the next 1-2 year. This has encouraged them to look at commanding a premium in the lease rentals.

Mumbai based Royal Palm Estates is also planning to emerge as another racer among the property developers who are bullish on constructing SEZ. The company will be investing a whopping Rs 650 crore in the next three years. Unlike the builders envisaging to grab the attention of potential users, Royal Palms aims to develop substantial space for small users whose demand will typically vary from 2,000 sq feet to 50,000 sq feet.

Data showcased by surveys show that most users utilizing commercial spaces prefer to have offices on the outskirts of cities, where rentals are less, whereas smaller users favor the locations closer to city-centres. Often, large users are seen to be well versed with the tact of getting the space on lower rentals, while smaller ones end up paying premium for the space.

The extension of the STPI scheme beyond 2009 is likely to offer most SEZs a competitive edge in marketing themselves to new players entering the race. Contrary to this, existing players operating under the scheme are keeping their expansion plans flexible.

News Published Under:   Special Economic Zones, Real Estate Developers |