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Jitendra Jain, CEO & MD of Neev Group of Companies
The Union Budget 2009-2010 showcased the Government's focus towards leveraging the level of growth for the infrastructure sector. The Budget estimates of 2009-10 provide for a total expenditure of Rs.10,20,838 crores, of which the total infra spending measures upto 10-11%(Rs.1,15,000 crores). Finance Minister, Mr.Pranab Mukherjee promised greater flexibility to Government-run Indian Infrastructure Finance Co. to fund projects and asked state governments for speedy implementation of projects. Also supported its growth by taking proactive steps to promote investments such as relaxing the norms of FDIs, PPP (Private Public Partnerships), toll road systems etc .Thus, this development has been a huge advantage for all infrastructure companies including us
The scope for growth in the infrastructure sector continues with regard to there being lucrative levels of demand for roads, bridges, skywalks, SEZ, metro tracks, social infrastructure etc.

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COMMENT   what about the regulation bill that had to be passed this winter? Why not govt take strict action builders for not givin   1 Comments Read more comments »

Pravin Doshi, President, Maharashtra Chamber of Housing Industry (MCHI)
“The realty sector, the backbone of the Indian economy, began to revive in the year 2009 and has sustained the trend throughout the year. The rising demand for affordable housing spread gradually to such other segments as retail, hospitality and commercial properties. The demand for commercial properties has steadily grown in the second half of the calendar year and shows good promise for the year 2010.
Banks proactively reduced interest rates on housing loans, which provided the necessary boost to the realty sector. The MCHI held special exhibitions for the first time during 2009 to promote properties in the central and western suburbs of Mumbai and the response was amazing.
Overall economic conditions started improving and the confidence which was lost in view of global uncertainty, has started building a better foundation. The job market has also witnessed revival as the economic and political stability at the centre and state played a crucial role in bringing cheers to the economy. Going by the trends, we can say that it augurs well for the real estate sector in 2010, as growth is now unstoppable.”

Anuj Puri, Chairman & Country Head, Jones Lang LaSalle Meghraj
The effects of the slowdown were still noticeable across the country in the first quarter of 2009. However, towards the middle of the year, residential rates in some of the larger cities began showing an upward curve. The cities that were most affected were Mumbai and Delhi. In Mumbai, many developers began raising rates by as much as 12-15% under the assumption that the renewed demand was assuredly sustainable under all circumstances. This assumption started backfiring towards the end of the third quarter, which is when demand began slowing down again in the financial capital. Delhi showed a more rational graph, thanks largely to a better volumes profile, with price escalations not going beyond 5-10% even in high-demand regions. Bangalore continued to display a sombre profile, since demand from the IT / ITES employee segment has not yet ramped up sufficiently. Chennai’s residential market continued to showcase its usual conservatism.
Looking at 2010, I can safely say that residential demand is the highest and most promising by far. Residential will continue to lead the revival phase, led on by a lowering of mortgage rates and price rationalization in newly launched projects. It also looks the most positive in terms of funding. There is liquidity available for certain typologies and formats, most especially in the affordable housing segment. This segment does not depend overly on international funding. There are two cost-to-developer components in question for such projects. One of these is cost of land, but such projects are located in areas where land costs are low to begin with. The second is cost of construction, which is adequately covered by the down-payments taken on such units. Moreover, such housing formats invariably employ de-frilled mass-construction parameters, which also imply lowered construction costs. I see an increase in private equity funding for affordable housing projects in 2010, since the demand for such projects is inflexible and assured. The emphasis will be on projects by established brand names that show sufficient potential for fast completion and absorption.
For the better part of 2009, the commercial segment uptake remained at about the same level as it was last year, when the slowdown was beginning to show its claws in earnest. It is an immutable fact that Indian office space depends to a significant extent on multinationals seeking to establish or expand their bases here. The health of Indian commercial real estate is closely connected to the global economy, meaning that Grade A office spaces have largely been about MNC occupiers and the IT/ITES industry. When the financial crunch deepened in the West, many intending international occupiers put their Indian entry/expansion plans on hold. We are beginning to see the first signs of revival in commercial real estate now, but the process is pretty gradual. For investors, this is the best time to invest in well-researched commercial real estate opportunities. There is, in fact, an increase in investors looking for such opportunities, since the prices are now near the bottom. Long term investment, which is the kind that truly works, will ensure that investors can reap the benefits when the office market shapes up for real in 2-3 years.
Indian retail had gone through a decisive learning phase in 2009. Like the commercial segment, Indian retail growth depends significantly on the aspirations and spending power of cash-rich IT professionals. When the downturn hit the IT sector, there was a noticeable setback in Indian retail real estate. There had been corrections in rentals and consolidation both at the retailer and market levels. Many unsustainable market models were edged off the map. While 2009 was the year that separated the boys from the men, 2010 will be the year of the survivors to make a serious bid at the recovery process. Many players will consolidate their operations and rationalize their business models to dovetail with the newly emerged consumer dynamics. Value retail will be the winning ticket, and we will see the stronger value retail players make calculated plays in key Tier II cities. High end retail will show a stronger hand in 2010, as well. There will be also a wider acceptance of big brands as returning economic stability infuses buyer confidence into the market. The revenue sharing / minimum guarantee model will gain wider acceptance and become the norm rather than the exception, bringing this model's prevalence in India closer to international trends.

Mayur Shah, Managing Director, Marathon Group
“The 2009 has turned out to be one of the best years for the realty sector. The realty sector, which is the backbone of the Indian economy has seen revival at the beginning of the year and maintained the recovery throughout the year. The demand which was seen in the affordable segment initially spread to the other segments such as retail, hospitality and commercial gradually. It is indeed a good thing that commercial properties witnessed some demand in the second half of the calendar year and we look forward yet another bright year for the real estate sector in 2010.
One of the most important factors that played a key role was revival in the economy that aided the uptrend in the realty. For Marathon Group, the success of affordable housing project -- Marathon Nagri (Badlapur-Thane), Marathon Monte Vista (Mulund) catering to the mid-income and high end customers respectively and Marathon NextGen Innova (Lower Parel) unveiling the small-business-spaces (SBS) towards Banking, Financial Services and Insurance sector emerged as successful projects with overwhelming demand from the customers throughout the year.”

Anshuman Magazine, Chairman & Managing Director, CB Richard Ellis, South Asia Pvt Ltd
“The year 2009 started on a discouraging note for the residential, retail and office market in India. Residential sales declined significantly, demand for office space saw a substantial drop which triggered a decline in rentals and postponement and cancellation of projects and retail real estate was also significantly impacted.
However since the 3rd quarter of this year, each of these segments has seen some improvement. In the residential sector, the reduction in prices, softening of interest rates and an improvement in the economic sentiments led buyers back to the market. In the office market segment corporates too are slowly returning to the market and office space take-up has improved. Besides the IT/IT related companies, telecom, FMCG companies etc. have also contributed to the demand. With an improvement in the consumer sentiment, and competitive retail rentals, retail real estate too is ambling towards better activity levels especially in tier one cities.
During 2010 we can expect to see some sustainability in the residential market as activity levels have improved. On the office market front, demand is expected to improve although the rentals are expected to remain flat in the medium term due to the forecasted large supply of office space.
The retail sector on the other hand will take some time to fully recover depending on the economic growth /improvement in domestic consumption, consumer sentiment, availability of retail space at competitive costs etc.”

Susnato Sen, Practice Head – Infrastructure, Tata Strategic Management Group
“With the economy showing signs of revival, I expect infrastructure development to pick-up momentum in the New Year with focus on fast track implementation of flagship projects like NHDP. Addressing some of the policy issues like tardy land acquisition, lengthy pre-tendering approval process, ineffective dispute resolution mechanism and limited access to long term funding would be critical particularly to facilitate PPP. Apart from few companies, most would need to strengthen their capability in tapping this large opportunity. This relates to enhancing their project management skills, developing a global vendor network and addressing the quality and safety concerns of a project.”

Samson Arthur, General Manager (India), Quinn group
A slow but steady recovery of the economy seems to be underway with signs that the real estate gloom finally seems to be moderating. It also ascertains that prices bottomed-out during this period and signs of stable pricing, though not upward moving, seem to offer much needed relief. Property developers are therefore positive of a space uptake in 2010. However, while there was some consolidation in the later part of 2009 due to an easing in property prices, it became clear that only serious players with a strong focus on quality, reliability and customer satisfaction will sustain and continue to outperform in the long term.
This is because there are still worries facing the industry. A case in point looming large amongst developers are the huge debts raised to develop office towers, hotel complexes and retail projects during the good times when the economy was booming and credit was easy to come by. Other problems for the industry include a surge in bankruptcy and employee layoffs, along with near record levels of vacant office and retail spaces.
On the flip side, the ready availability of rental properties and downturn in prices has opened up an opportunity for players with intelligent, market-based business plans and superior customer care to win over consumers who have become increasingly value-for-money conscious.
For those that succeed in winning customer’s hearts during this period, 2010 could reap handsome rewards. Despite, the troubles facing the industry, the healthy growth rate of the wider Indian economy is expected to help the property market recover faster than those in the US and UK. It is estimated that IT, ITES and organised retail players will require more than 300 million sq. ft of office and commercial space in 2010. This demand will be further boosted by the opening-up of new land for construction projects.
With the industry’s new emphasis on offering customised solutions, flexibility of terms and enhanced customer care it is expected to lead to more construction of affordable housing and value-for-money commercial estates, 2010 certainly looks like a better year for developers and consumers alike.

R Karthik, Senior Vice President, Marketing, Lodha Group
“The realty sector staged a quick and definitive bounce back in 2009 after a year of substantial drop in demand. The chief architect of this revival has been the residential segment, registering a record 112 per cent rise in sales in the June-Sept 2009 quarter in Mumbai, according to a recent study. While Mumbai has seen the fastest growth in 2009, other cities too have staged a remarkable turnaround in the year. Today, people have greater confidence in the economy, home loan interest rates have been slashed which has made availability of funds easier and builders are now targeting both high income as well as mid income customer segment. For Lodha developers the year 2009 has been an excellent one. We believe that the growth triggers would be sustained in 2010 as there is a huge gap between the potential demand and the supply. With rise in income, the customers are also looking for world class qualities and amenities and developers who offer these facilities would continue to enjoy good market share".

Srinivash Singh, Managing Director, McNally Bharat Engineering Co. Ltd
With the economy back on track we expect the Infrastructure sector & related areas to be engines of growth in 2010 also.
McNally Bharat Engineering Co Ltd has been gearing up in the last few years to be a significant player as an EPC contractor in Infrastructure Development. We are a turnkey solution provider for EPC projects covering Engineering & design, manufacture, procurement, project management, construction, erection & commissioning. We have a significant presence in core industries in Power (Balance of Plant, coal handling, ash handling, water pre-treatment etc), Material Handling in Mining, Power, Steel & Port projects, Mineral Beneficiation, Steel plants, Aluminium & other Non Ferrous Metals, Port Cranes, water treatment & supply etc.
We have today over 1000 engineers in various functions including design & engineering, manufacture, construction, project management, procurement etc. Our manufacturing facilities are located in Kumardhubi, Asansol, Bangalore & Baroda where we manufacture Material Handling and other Heavy equipment required in the core sectors.
Our Construction Division have a large inventory of Construction equipment currently deployed in various project sites.
We have recently shifted to a 1,30,000 sq ft office in New Town in Kolkata so that we can accommodate new engineers being recruited to meet our growth plans.
We have appointed leading International Consultants to advise us on future HR Initiatives and also on providing strategic guidance on new business initiatives.
To sum up, we are fully geared to take advantage of the future opportunities in the Infrastructure sector.