Realtors rally around big builders to start stalled projects

In the backdrop of a severe cash crunch, property developers in the Delhi-NCR region are increasingly partnering with big builders from the country's South and West to restart their stalled projects. In the emerging scenario, financially strong firms like Prestige Group, Godrej Properties and Kalpataru Group have entered into joint ventures and development management agreements in the country's largest property market by volume. A joint venture or development management agreement puts a large developer in the driver's seat as the new entrant gains control of the new entity. Additionally, the established developer's track record and ability to maintain cash flows help and bolster the pace of project execution and marketing. Local developers are unable to develop on their own and are under threat of being taken to the NCLT as buyers prefer corporate developers with better track record. Southern developers, who have better finances, are able to get good projects with lower risks as the local partner takes care of the permissions, said Mudassir Zaidii, executive director (North) of real estate consultant Knight Frank India.