Asset Management Services In India

By Author: Loknath Swain
Total Articles: 22
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Indian real estate sector has seen an unprecedented bang in the last few years. This was ignited and fueled by two main forces. First, the expanding industrial sector has created a surge in demand for office-buildings and residential-buildings. The industrial sector grew at the rate of 10.8 percent in 2006-07 out of which a growth of 11.8 percent was seen by the manufacturing sector alone. Second, the liberalization of government policies has decreased the need for permissions and licenses and considerably reduced red-tapism before taking up mega construction projects. Now , in many parts of India there is only one single window where developers can sanction their projects and get NOCs. Opening the doors to foreign investments is a further step in this direction. The government has allowed FDI in the real estate sector since 2002. FDI was deemed necessary in the view of making the sector more organized and increasing professionalism.

But along with mammoth construction activities, developers also need to give special attention to asset management services. The spectrum of services provided under asset management services ...
... include but not limited to: housekeeping, both manually and mechanized, tenant management or finding a suitable tenant, collection of rent, negotiating rent agreements with changes in market prices, other legal and maintenance requirements. The charges for these services differ from company to company and also on the size of the property of the clients. Some company charges between Rs 2.50 to Rs 4 per sq ft while another one takes a commission of between six to 10 per cent on the annual rental value of the residential properties.

The primary benefit of asset management is that it allows for better expense planning as far as maintenance of a property is concerned. This maximizes the asset value, since a better-managed property fetches a higher price than one that is not — both in occupier rentals and in outright sale of the asset.

About Projectwell:

ProjectWell is India's first and Development Management Company in real estate in India. It view projects from a "cradle to cradle", and obtain solutions for the entire life cycle of the building project. Well projectwell is involved in the development of integrated communities that bring us back to childhood.

Projects in India has traditionally changed hands during the transition between the landowner for the developer and then during the transition from construction to occupation floors. With the change of ownership change occurs in the context of the projectwell look at the proposed project is not in 3 different stages, but in a holistic manner considering its evolution throughtout his life. projectwell approach to conceptualize projects and then manage it during construction and occupation offers transparent, process-oriented solutions to the smooth running of a project in its entirety.

About Loknath Swain

Loknath Swain is a Mumbai based writer. He writes on subjects related to Real Estate in India and Affordable Housing in India