NAI launches its operations in Eastern India in association with NK Realtors

Kolkata, 26th April 2005: In view of the growing real estate potential of India and the real estate boom being witnessed by the country, NAI, a global corporate Real Estate Consultancy Major launched its operations in Eastern India in Association with NK Realtors a prominent name in Real estate Industry in this part of the country.

The official launch was announced at a Press Conference in Kolkata and was attended by Mr Abhijit Malkani, Regional Director, India and Middle East of NAI and Mr R N Agarwal, Director NK Realtors.

While NAI at present has operations in more than 300 markets in 40 countries across the globe, thus making it among the largest and most networked real estate consultants in the world, and provides commercial real estate services to a global clientele, NK Realtors is one of the largest vertically integrated commercial real estate service firms in India - offering the most comprehensive services portfolio in the industry.

The coming together of these two companies provides a unique double sided advantage to the real-estate industry at large in this part of the country, as the best of global know-how as well as local expertise is now at hand.

NAI, which transacted over US 27 $ billion last calendar year has entered into a licence agreement with the strongest local contender NK Realtors and they are entering into similar such agreements in other parts of the country as well.  

Currently they have their outfits in six cities in India namely Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad.

Mr Abhijit Malkani, Managing Director India Operations mentioned at the conference, “the Indian market is among the most dynamic in Asia and it definitely is the right time to enter. While we focus on the India Operations, Eastern India will occupy a special place in our plans and that can be fully accredited to the huge potential in this part of the country considering the real estate boom being witnessed here.”

As a result of this association a large number of global investors will be served by NAI-NK Realtors in this market to explore opportunities in acquiring residential, commercial and corporate development projects in Eastern India. NAI is targeting revenues between $1 to 5 million from this tie-up, and it is also looking at increasing the number of offices in the region manifold in the next 12 months.

The key sectors driving the demand for real estate in Eastern India are information technology, call centres, shopping mall development, demand for housing due to lower interest rates and various tax incentives. 

According to a recent global real estate study undertaken by NAI successfully concludes that over next five years an estimated number of 3.5 million jobs will be outsourced to India. This would create a demand of approximately 200 million sq. ft. additional office space. A major portion of this demand will be fulfilled by the space currently vacant. However an average of 10 – 20 million sq. ft. new space per year will be required annually over the next decade.  The study, undertaken in conjunction with renowned real estate economist Dr. Peter Linneman, reveals that the residential section will also get a boost to house this new prosperous workforce.

Mr R N Agarwal Director NK Realtors, when quizzed on the comparative advantages derived from this tie-up answered, “In order to get access to the real estate solutions nationally and internationally an international exposure was quintessential, and NAI is one of the leading companies globally offering the best real-estate solutions worldwide, hence we thought it mutually beneficial to get into an alliance with them. With this alliance, tapping the FDIs and getting other MNCs to come to India will be facilitated greatly”.

“By the tie up we will be able to deliver services in the international standards, have best practices with international tools and techniques, as well as advanced technologies. Besides in order to offer international services in this industry it was essential to cope up with global competition and a tie up with an international partner was the best alternative to be at par with the international competition”, added Mr Agarwal.

 The additional services that now come under the NAI-NK bouquet are as follows:

  • Management Services – Facility Management, Project Management.
  • Advisory Services – Feasibility Analysis, Property Valuation, Location Benefit Analysis.
  • Financial & Investment Services – Investment Acquisitions and Sales, Mortgage Brokerage.

 “As the real estate industry is booming, the tie up will boost our capabilities to grow and we will do more business by giving international standard services to our existing clients and foreign companies. It will enable the corporates to deal to derive the benefits of our multi-locational facilities,” summed up Mr Agarwal.

While throwing light on the major trends in real estate in the country Mr Malkani mentioned that investments in the sector have become really strong as compared to the scenario two-three years back. A more structured return on investment approach in the market is observed now and most of the projects are now being financed pre-sales.

The road ahead for the alliance partners focuses upon a second phase of expansion which would be kicked off in the later part of the year in the smaller cities in Eastern India.