NEWS RELEASE
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David Harrison
CoreNet Global
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CORENET GLOBAL: CORPORATE REAL ESTATE GROWING IN INDIA, THOUGH CHALLENGES REMAIN
ATLANTA, GA (11 JUNE, 2014) -- As the world’s second largest country, India’s economy is growing and the field of corporate real estate is developing along with it. However, the corporate real estate field faces certain challenges presented by the country’s infrastructure, development of real estate talent and the complexites faced by real estate developers.
The corporate real estate landscape in India was detailed in a white paper released today by CoreNet Global, “Corporate Real Estate in India, Taking a Deeper Look.” CoreNet Global is the world’s premier professional association of corporate real estate professionals, service providers and economic developers.
Infrastucture Needs
According to the report, there is a significant dearth of adequate infrastructure in India, making CRE decisions harder. The lack of quality roads, reliable power supply,
and sketchy internet connectivity mean that CRE executives have to take into consideration the dynamics that these issues bring to the fore. These factors also affect
workplace productivity and the bottom line.
Bad roads equal long and uncomfortable commutes, resulting in employees who are tired and not completely productivewhen they come into the office. Unreliable power necessitates the presence of sometimes expensive back up electricity, with many office buildings needing to have a100% backup power supply.
The Indian government has made enhancing the country’s infrastructure a top priority.
It estimates that there will be a need to spend up to USD 1 trillion over the Five Year Plan spanning 2012-2017 in order to get the infrastructure up to speed.
Availability of Talent
Quality talent, which is a challenge to find in any profession, is scarce in the Indian CRE profession as well. There is still a substantial gap in what employerswant and need, and what is available. One major reasonis the absence of formal education in real estate relatedtopics. There are degrees in management and construction,which offer real estate courses, but real estatespecific degrees are lacking. This means that few pursueCRE as a career, with most of those in the professioncurrently “ending up there.”
In order to appeal to greater numbers of people, there needs to be a concerted effort
on the part of the existing CRE workforce – End Users/ Occupiers, Service Providers, Developers – to highlight the attractions of the profession.
Complex Role of the Developer
In the real estate eco-system, the property developer plays an integral role, though this role varies from country to country and market to market. This is the case in the Indian real estate scenario as well.
While the traditional role of the developer in the Indian real estate market has been to build structures, this role has grown over time, keeping up with thechanges and the evolution of the market itself.Because not all of the necessary skills can be sourced in-house, developers frequently outsource various aspects of the project to a growing team: architects, real estate agents, landscapers, contractors all play a role in getting a the building process.
Whilethis outsourcing allows the developer to engage thoseneeded to ensure project completion, it also adds anuance of additional complexity to the role of the
developer. The developer needs to have the skills andunderstanding to deal with all of these variouscomponents. This necessity has meant that those whowork with the developing entity must have excellentpeople and project management skills.
CoreNet Global has compiled a series of three reports on corporate real estate in India in an attempt to foster growth and awareness of the industry reginally. To see a copy of the full reports, click here.
About CoreNet Global
CoreNet Global is the world’s leading professional association for corporate real estate (CRE) and workplace executives, service providers and economic developers. CoreNet Global’s 8,000 members, who include 70% of the top 100 U.S. companies and nearly half of the Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally. For more information, please visit
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