Indian realty developers look abroad for contractorsAccording to a report by broking firm, Prabhudas Liladher, domestic real estate developers are facing a shortage of local contractors. This is why firms are forced to look for overseas contractors for their projects.
Apnaloan.com Research Bureau
13 Sep 2007
According to a report by a brokerage firm, Prabhudas Liladher, domestic real estate developers are facing a shortage of local contractors.
This is why firms are forced to look overseas for contractors for their projects.
The report says that the execution of the real estate projects will face issues regarding availability of contractors because the domestic contractors already have large order books on account of both infrastructure development and corporate capital expenditure.
Also, as yet, not many domestic contractors are skilled to execute huge projects. Most of them are with many small-size firms with low skill levels.
However, many domestic contractors are also venturing into large infrastructure projects, doing huge projects in India, Vietnam, Malaysia and the Gulf. Faced with the shortage of this crucial input, most Indian developers are joining hand with overseas contractors.
Ansal has tied up with contractors in Thailand for a project in Lucknow. It still works with local firms and architects such as Hafeez Contractor. DLF Ltd has a joint venture with the UK-based infrastructure and construction group Laing Rourke and is planning to tie up with more international construction companies.