Mumbai property developers are going national as they expand their presence beyond the local market. Leading corporate developers - G L Raheja, C L Raheja, Kalpatru and Gesco Corporation - have started contributing to the landscape of Pune, and many propose to expand their presence well beyond to other towns and cities across the country.
"Mumbai has a lot of potential, but a company needs to have more than just a single city presence. We are, thus, setting up this on line portal that will help clients around the globe view the latest upcoming propoerties," said Adil Tantra, managing director, Mumbai Pune Propoerties
Pune's skyline has seen more than 10 projects undertaken by Mumbai builders, both commercial and residential in nature. Each of the five Mumbai developers has a good portfolio of projects. G L Raheja group has a residential complex at Wanavdi. C L Raheja group has also developed a residential complex in Kalyani Nagar. Gesco Corp has two projects-residential and commercial, both of which have fared well in the Pune market
Brokers are finding it easier to sell property developed by Mumbai builders and this has been reflected in the fact that most of the property is sold out at the earliest
Taking the cue from their success in the Pune market, Mumbai developers are eyeing cities like Hyderabad, Bangalore and Calcutta. Each has its own characteristics and attractions. "Availability of space is immense in cities like Pune and Hyderabad. Yet, few developers offer A-grade constructions, especially in these cities," said an official from the GL Raheja group. This, he added, offers the developers immense opportunities to cash in on the demand of top corporates.
Mumbai developers, while offering top of the line product, have to be equally competitive in terms of pricing with their local Pune counterparts. There is just a marginal difference of a few hundred rupees per square foot in favour of Pune developers, said a real estate broker.
At the same time, when one is dealing with multinational and large-sized corporates or foreign insurance companies, which demand best services in terms of the architecture and design, Mumbai developers clearly have an edge over their competitors in Pune.
"Buyers are very particular. They want to know what usable space is available, and what is necessarily built into the design," said a Pune real estate broker.
Reiterating the fact that Mumbai developers offer a better product than the local ones, Adil said:"We offer top of the line product. Local developers look at the facade, but not at the nuts and bolts while working on a project."
Attraction to expand their presence to other cities does not hinge on margins. Far from it, margins are the best in Mumbai, with property prices in Mumbai attracting Rs 15,000 to Rs 20,000 per square foot. Calcutta or Chennai do not even come close at Rs 1,500 per square foot.
Will Mumbai developers change the skyline of Pune? No, says Adil. As the permissible FSI is still low, and the infrastructure in Pune cannot take the load.