Builders share Resources to Control Costs
Many builders are finding it difficult to service loans-the combined debt of the top eleven listed real estate firms is 38,500 crore. In such a gloomy scenario, builders sharing resources-man, machine, land and finances-would help control costs and keep a check on inventory.
Few builders have decided to build joint projects using one builder’s land and another builder’s development and marketing skills, others are sharing capital. Unitech recently tied up with Chennai-based Arihant to build a residential project on Arihant’s land in the city.
With home sales falling steadily, builders are piling up huge inventory-as high as 40 months in a few cases in Mumbai. Developers have been concerned about sustainability of their plans in the backdrop of record land prices.
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