A paper co-authored by Realism Real Estate Consultancy Pvt. India Ltd. (realism.IN)
The research paper has been co-authored by Divyanshu Sharma & Vinod Singh (realism.IN:
Unlike point estimates (such as company size, investment amount, return on investments, etc.), it is challenging to mathematically analyze and model a process adopted by a firm in delivering the final output (e.g. developed properties). That is why, in spite of some "anecdotal" documentations of the real estate development process in India, to the authors' knowledge. there are no studies which address the issue statistically. Surprisingly, no such studies seem to have been done in the U.S. as well. The study adopts a unique probability distribution test to compare and contrast the real estate development processes between the U.S. and Indian samples and within the sub-samples of India. The method is based on a paper titled "How Appraisers do their Work" authored by Prof. Julian Diaz III. The analysis of Indian developers suggests that the overall real estate development process in India differs from the normative process suggested for the U.S. While the difference is significant in certain sub samples (such as the older, larger firms; or those operating in smaller cities or not seeking foreign investment); no differences were detected in the subsamples which are complimentary to these (e.g. newer, smaller firms operating in larger cities or seeking foreign investment). The study further provides details on where the differences actually exist.
'Although it may appear to be a purely academic endeavor', says Divyanshu Sharma, a co-investigator and the Head of Operations at realism.IN, 'we had a very specific purpose: to objectively understand the "what's" and "where's" of the differences. This will not only help the real estate developers in filling their skill gaps (and make their processes more efficient); but will also prepare them in standardizing their processes for effective collaborations.' The study is particularly timely as the world witnesses cross-national collaborations for real estate development projects. 'In the wake of economic slowdown in the domestic markets, a number of U.S. developers such as Hines, Trump, Tishman Speyer among others are now trying to tap the Indian markets even more eagerly. An analytical understanding of how their development processes differ from the Indian players will help both the sides', adds Vinod Singh, another co-investigator and the Head of Technology & Innovation at realism.IN.
realism.IN intends to release an 'industry-friendly', well illustrated report with the findings of the study which should be available from the company website soon.
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