Comparing Three Malls in NOIDA

Recently had a chance to compare three malls in Noida. The Three of them are in very close vicinity with each other and today the three of them are a classic study material for those who want to study Real Estate, Marketing Real Estate, Risk Management, Vaastu specially about commercial spaces their culture, their space and success.

Case Study

These Malls which I have put forward are in Sector 18 of NOIDA near New Delhi (India), here I have marked them as Mall 'A', Mall 'B', and Mall 'C' listed in the sequence of size.

As you can see that the area 'A' is the smallest, while area of 'C' is the biggest, and if we see the facilities available at 'C' are much superior to what 'A' or 'B' have.

To have a glimpse of the 'C' you can surf to their website at

http://www.thegreatindiaplace.com/

This availability of Space and facilities have brought the major Brands to sign agreements with 'C' and have opened with 'C'. Another advantage which 'C' has is that it also has an Amusement Park and Cinema to pull the footfalls (a jargon used by several people in the Real Estate Industry about which I shall discuss in another blog of mine),

then comes 'B' it has a cinema screen, and has the ability to pull some of the footfalls, specially for those who wish to watch a movie which is not running at 'C', and it would not be out of point to mention here that 'C' has six multi screens to boost of.

Now the hundred dollar question is what should 'A' do to get the footfalls, which neither has the facilities, nor the brands nor a cinema. Did the Real Estate Developers think of this Risk did they inform their clients. So you see Risk is not just the contract papers, it involves the ability to look into the future, and look at several aspects of the equation.

(I already have the answer and will be sharing it with you all in due course of time, as I give you more details about the three of them)

Soon I will be going to this Mall 'A' and will bring some pictures to assist you all to analyse how the situation is today.

Where are the Good People of the Industry? ...............Are they still with you?..............Look again around you.

If you look at most of the survey and studies by staffing services firm they will all indicate that the global talent crunch is clearly here.

What is seen is that companies have been shedding jobs, and there aren’t too many new ones going around.

For all the shedding that is taking place, one will have to see around if good people are available for the picking? some would suggest that it is and some would say it would seem not. If you are the one who suggests that companies have managed to hang on to their best talent, then please think again as it is only half the story.

If you were travelling in a bus and it breaks down on the way, and if you are told that it will take about five hours for repairs, what do you think.

Among your co-travellers who have left and who are the ones who have stayed back. If you look around the most resourceful, talented and best suited employees, with skills that are much in demand across companies and sectors, have left and only the infirms with low resources have tend to hunker down and wait out a repair job. Their preference for the status quo and fear of change outweighs the risk of travel of a new job.

The bad news for companies is that those talented employees will leave or have left, helping others in the process to reach the destination before you.

Whenever or as soon as the economy turns, these talented people would have joined your competition—unless they were given good reason to stay back.

Each organization have their share of Horses, Mules and Donkeys.

Recession in the Real Estate Market

Everyone wants to hear that recession is ending. The person who gives the earliest date is the best man of the industry. Not because he knows all but because he gives hope.

This hope to be back in business and booking profits again. Any news which tells that bad days are over is lapped up first.

But the question is why should we look at all these people for guidance. If you want to have a tab on the real Estate Market look at the Rentals and what rentals say the main market will follow.

Another thing what is also important to note here is that the Real Estate Market follows the other market but just takes more time to react. (with a gestation period of about 9 months) If the main markets starts going north at this hour the real estate will start going north about 9-12 months from now. So just watch and keep your fingers crossed. If you want to survive be innovative, and innovation does not come cheap (unless you already have those people with you.) If you are a large organization, and now that your caravan is passing the desert, your survival and moving from one oasis to another will depend more on your hawks and horses than your camels. Now look and see how many horses and hawks you have, or you have only donkeys and mules. In the innovation end let me put one thing here that let your boys go to your old clients and specially to those who you have lost.(early business will be from them)

The Quality of Product in Real Estate

It is true the prices of Real Estate are falling and are going to fall further. In India this trend of falling is going to be slow and steady. Fall of prices of Commercial Properties is going to be faster than the Residential Properties. People who are expecting that this fall will be only for few months be warned that this fall will be there for more time. Properties which have been designed with no or very few facilities will find that they have no takers. They will have to sell as it was sold in "khosla ka ghosla".

If at this time some organization comes forward and offers its services to puts up a standard for building, and sets up a system in which it gauges the quality of the building, will go a long way, and may in less than a few years become the name of quality. not like the government which has a dubious name of being corrupt. (e.g.) If I buy a house made by Delhi Development Authority I know that the Quality of the Material is going to be under a system which calls for Lowest Tender and on top of it the contractor has to pay to the Junior Engineer to get his MB done, then the Executive Engineer for getting the MB sent to the Accounts Department, then the Accounts Department for getting the payment, now this has tax input also in it, normal if all the gears are greased properly the payment will come back in two to three months this is earliest, now the supplier of goods who had given the Goods to the Contractor has put his interest part and as chances of the contractor not getting any payment is also there, the risk portion has also to be put in. All this ENSURES that the quality of the material is going to be very low, or should we say the lowest it can get. But the government standards are such that even after putting the worst what you get is reasonably OK deal. So after purchasing this flat what I do is do away with the plaster, pipes and electric system and put a new system in these areas, and get a reasonably livable flat, much better than the one's available made by so called colonizers or developers who are in most cases local goons who have got together and formed an association with glass offices and are selling houses which pass no test. With less than half the cement and steel in place. Taking most of the money in Black the purchaser has no option than to dance to their tunes and for those who ask for what they had been promised these goons show them their original self.

what I have said here is which everybody knows so what's new. Now if someone comes up and goes with the buyer to help him and tell him straight about the quality of the product, the people with quality will be rewarded and a premium can always be gained.

We have been taken out to see lot of properties and also their Papers. What we have noticed is that out of 100 properties, 25 have their papers forged, 60% are below minimum standards.

But these are not the reason for the drop in real estate rates

Trends in Real Estate Market

Most of the people who approach me for guidance ask me
what to do in the present market?
With the Prices Going down, about the future trends, when it will touch the lowest, when is the right time to buy or sell.


This Blog is a small way of putting our views for most to gain, or put their views.