Realty majors seek pan-India presence

Real estate developers are shedding their regional tag to build a pan-India presence. While most are expanding independently, some of the heavyweights are entering into joint ventures to enter new markets.

Among the big players is DLF Universal, which has largely had a Delhi focus, but is rapidly setting up operations in Mumbai, Kolkata, Bangalore and Kochi. While it is foraying into Bangalore and Kochi on its own, it is reliably learnt that in Mumbai, the real estate major has tied up with the Akruti group for developing a commercial property at Andheri.

Pia Singh, director, DLF Universal, told Business Standard that the company is charting an expansion plan in other cities.

The Delhi-based Ansals too are eyeing mid-sized towns such as Jaipur, Sonepat, Panipat, Ludhiana and Jalandhar, say sources.

The CL Raheja group of Mumbai too is establishing its presence in Pune and Chennai, where it is believed to have joined hands with an undisclosed regional player for a share in the profits.

Hiranandani Constructions is currently the only developer to have a foreign tie-up with Dubai's ETA group, which has a presence in Chennai (City Centre mall).

Anuj Puri, managing director, Chesterton Meghraj, says, "Developers are moving into new markets by flexing their expertise in large format constructions. A case in point is DLF which recently won a bid for developing a 1.3 million square feet IT park at Kolkata."

Invitations from the state governments to develop townships and IT parks have also been driving expansion plans. It is learnt that the West Bengal government has invited the Delhi-based Unitech to develop a 150-acre integrated township in Kolkata.

Unitech has also formed a joint venture with a local party for its expansion in Kochi, says a source. Mumbai's K Raheja Corporation too has been invited by the Andhra Pradesh government to develop a township with a view to attracting companies and creating jobs in the region.

"Most developers are expanding because of pressure from their existing IT clients. They are following the clients' business and expansion plans that are largely driven by space demands. Also, IT companies entering India ask the developer to create a facility in the city of their preference. The developer then enters a new city with existing business in hand and therefore minimises his risk," says the head of a leading property services firm.

With developers capitalising on non-core markets, the real estate sector seems all set for the emergence of key national players.