Realty consultant NAI sets up shop

The US-based NAI, a commercial real estate service firm, has entered India to cash in on the growing commercial space segment. It has entered into exclusive licensing agreements with six Indian consultants in the main cities.

"We want to offer our expertise in commercial real estate service to the booming Indian market. We have estimated a commercial space demand of 200 million sq feet and see great potential for us," Jeffrey Finn, president and COO, said.

"Several multinationals are eyeing India not only for back office operations but also manufacturing facilities. Apart from IT companies, we are seeing a good demand from auto and pharma companies, which are expanding facilities. The markets are becoming more organised and we want leverage this growth in the country," Finn said.

NAI, which recorded business of over $27 billion last year, would provide its services in the four metros as well Bangalore and Hyderabad.

The company is also particularly interested in the retail sector. "We are seeing a phenomenal growth in the retail segment, specially malls, in major cities. We see great potential for us in areas such as facilities management, operations and management facilities and also hotel consultancy. Our Indian partners will be able to access the technical expertise and our global clients will be routed to Indian partners," Stephen E Atherton, managing director of NAI Asia Pacific said.

Companies such as DHL, Gillette, IKEA, Siemens, Apollo and CGI have all been expanding creating a huge demand for commercial spaces. We are looking at more such big firms making real estate investments next year, Finn said.

Also, the easing of stamp duty structure, return on investments and transparency in the legal system is making India an attractive real estate investment destination.

Abhijit malkani, regional director of NAI's Indian operations, said the company would expand in the second phase to Pune and Jaipur by 2005.