Corporate make mistakes even after establishments of huge office, appointing well educated staff and Professional , using High Tech Technology and Putting Money – Power and using Muscle – Power / Political Power etc.
What, I am going to explain and sharing to all of you, it is related to Real Estate Sector.I always meet Corporate People and come to know that they can be also wrong.Why they fail even after putting all efforts ? I tried to find answer of this question.
I have to meet several MNC / Developers / Investor and High Net Individuals.I meet several leading companies of India. Some of them doing great and tremendous work for developments but mostly Companies are facing legal problems due to lack of correct information and Land acquisition procedure even they could not start their development works after putting Money and Muscle Power.
India :Some Facts
The Real Estate Sector in India assumed greater prominence with the liberalization of the economy, as consequent increase in business opportunities and labour migration led to rising demand and housing space. At present, the real estate and construction sectors are playing a crucial role in the overall development of India’s core infrastructure.
The Real Estate Industry’s growth is linked to developments in the retail, hospitality and entertainment (hotels, resorts, cinema theatres) industries, economics (hospitals, schools)and information technology (IT) enabled services ( like call centers ) etc and vice versa.
In 2002 the government permitted 100 percent foreign direct investment (FDI) in housing through integrated township development.
India’s Real Estate Sector is witnessing a growing rate of 30% annually over the next decade. These growth in real estate industry encouraged lots of developers, industrialists, MNCs and investors to explore the new and virgin areas of Maharashtra.
Konkan region of Maharashtra i.e. Raigad, Ratnagiri, sindhudurg and part of Goa have emerged as best destination for MNCs, developers, Industrialist, and investors. Several types of development works are being carried by the big groups in this district of Maharashtra.The three main factors with contribute to any development works are topography, location and access .
These districts have all three counts on high scale. So the districts provide lot of option to grow by developing infrastructure such as industrial estate, residential colonies, farm houses, second homes, hospitality, entertainment, educational hub, and special township project (STP), SEZ and many more.
These facts have triggered the demand among MNCs, developers, Industrialists, and Investor to invest in lands for their various projects. But lack of information about the lands, its legal status, its zone, its D.P. plans etc., its proving an obstacle to a smooth acquisition.
Scores of instance of companies or high net worth individuals being duped have come to the fore. Like some have purchased lands for industrial projects and later found out it falls into some other zone because of which they cannot execute their plans. Many others have got entangled in either red tape or obstacles from locals ending up in legal hassles.
Corporate Work Style
Before any investment the main concern is NO RISK and ASSURED GROWTH. Keeping this concept in mind, all corporate design and plan before starting any projects.
They appoint highly educated professional, legal advisory committee , Great planner and invest huge money for infrastructure and Technology.They establish different – different departments for different – different works.
Before completing their Home-Work they never start any projects.They start their work after approval by all concern departments.
In spite of that they fell in problems and lose their money and sometime they has to leave the project even after big investments.
If you are planning to buying properties in any part of India , then you have to aware of land laws in India.There are many rules and regulation. When it comes to lands, there are many related issue like transfer of ownership, right over these lands, improvement and protection of lands and much more.
As Real Estate Developers and Builders are hunting for raw land across the country for their upcoming construction projects, even several foreign companies hunting for lands, a specialized set of land is under the process of acquisition and development.
Property Development is a multifaceted business, encompassing activities and release of existing building to the purchaser of raw land and the sale of improved land or parcels to others.
Developers are the coordinators of the activities, converting ideas on paper into property.
Developers buy land, finance real estate deals, build or have builders build projects, create, imagine, control and orchestrate the process of development from the beginning to end.
Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards.
Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary approval and financing, build the structure, and lease, manage, and ultimately sell it.
Developers work with many different counterparts along each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractor, leasing agent and more.
In general, land development is the riskiest but most profitable technique as it is so dependent on the public sector for approvals and infrastructure and because it involves a long investment period with no positive cash flow.
Setting up a project today is not just putting money power, muscle power or political power, what is required is in-depth knowledge of the subject coupled with complete adherence to all the prescribed rules and regulations.
Real property is not just the ownership of property and building, but owner of immovable property that are entirely conceptual, therefore we have to be aware of the legal aspects related to that land like its legal status, its zones, its D.P. Plan, updated Govt. policy for that particular area etc. , so that we do not fall into any trouble.
Education is not guarantee for success . Education is only a medium.
Technology is only a tool using for business – support.You can use to enhance your business, if wrongly use it could be detrimental.Always the man behind the machine to counts.