Realty may see consolidation: FICCI

Last Updated: Thursday, December 3, 2009 - 18:53

Mumbai: The Indian real estate sector is
likely to experience consolidation wherein bigger players may
opt for outright buy of smaller firms or forge joint
venture or business alliances with them.

"Going forward, the Indian real estate sector may see
a phase of consolidation in the industry. The bigger players
present domestically and with good project execution abilities
and financial muscle, may go for either a full takeover or
enter into joint ventures or business alliances with smaller
developers in the sector," FICCI`s Secretary General Amit
Mitra told.

Mitra said that consolidation would actually be a
good and healthy trend for the long-term growth of the sector
and help in bringing higher transparency, discipline and
stability in the market.

Stating that the global economic crisis has realigned
the scale of real estate development activities in the
country, Mitra said that many projects across the country have
been either shelved or deferred due to the difficulty in
arranging finance for the projects.

"Though the big developers having projects in the
metros and at strategic locations are able to raise money from
domestic and foreign sources, smaller developers are finding
it extremely tough to raise funds for their projects," he
said.

PTI



First Published: Thursday, December 3, 2009 - 18:53

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