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Local developers rope in global realty firms to boost project prospects

They are using the development management model under which the global firm constructs, markets and leases the project for a fee

The price of a residential unit, on an average, is 9-10 times annual income in a city like Mumbai, and about six-seven times in most tier-one cities

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Tishman Speyer also acted as a construction manager for Goldman Sachs for a 2 million sq ft project in Bengaluru earlier

Raghavendra Kamath Mumbai

3 min read Last Updated : Jul 19 2020 | 11:51 PM IST

The country’s local property developers are roping in global real estate developers as development management partners in office properties to attract international tenants and investors.

In development management, while the land owner is responsible for approvals and other pre-construction procedures, the other partner takes care of construction, marketing, leasing, and so on for a fee.

So far, development management was mostly happening in residential properties, but now, it is being adopted by commercial property developers also. Developers used to charge 12-15 per cent of the top line of projects as a fee in residential projects.

Recently Bengaluru-based DNR group tied

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