Real estate advisory companies are looking at increasing revenues from project management consultancy services to offset the impact of an ongoing slowdown in the sector. The move is aimed at offering developers increased efficiency in construction and saving their time and money.
As a consequence of the slowdown and a tighter monetary regime, Indian real estate developers are in no position to afford delays in their projects as it leads to cost overruns and increases the interest burden on company borrowings.
The project management consultancy business is growing at 40-45 per cent year-on-year. Major consultants like CB Richard Ellis, Cushman & Wakefield and Jones Lang LaSalle Meghraj are looking at increasing their revenues from this business.
In the past few months, Cushman & Wakefield has witnessed a significant increase in enquiries from developers about project management consultancy services. “At a time when higher efficiencies, controlled costs and reduced risks have an amplified significance during the construction phase, the role and need of professional project management players become even more important,” said Anurag Mathur, joint managing director, Cushman & Wakefield, India.
Project management consultancy services have been around since the late ‘90s, but were largely restricted to multinational companies, which relied on consultants to help them set up shop in a timely and cost-efficient manner.
Now, even small and medium real estate developers in India are hiring these consultants to ensure quality and complete projects on time.
