What is Development Management?
Development Management as a concept is new in India. A development management consultancy manages all risk components of a project during a) the planning stage, b)the construction stage and c) the operations stage. Such a consultant acts as a client representative, and does everything that the client should be doing to conceptualize, erect and run a development.
Such a consultancy service will help land-owners realize the maximum earning potential of their land, without having to divest a stake. Moreover, perpetual income will be generated. This is based on “on-ground” macro and micro level realties, de-risking projects substantially. At the same time, such a service will enable investors monitor their already deployed funds in Real Esate. Such investors will also expect Development Management to assess the viability of a new project; a viability not based financial figures only, but also on other project specific soci0-economic factors.
The Real Estate Industry has witnessed some dramatic times over the last 2 years. The time is ripe to bring in professionalism in the Development Management Process. Over the last few years, the industry has witnessed two striking phenomena: A) Foreign Investments coming into the industry, based on the “India Story” B) Landowners selling off their land parcels to developers, without realizing the perpetual income potential. This has led to a mad rush to buy more and more land, without much thought on what to do about such land parcels.
It is imminent that the next wave in the industry has to be equally led by technocrats, as against being driven solely by financial wizards.