Witnessing decreasing spaces for white elephants
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Witnessing decreasing spaces for white elephants
Jenevah Sat Jan 29, 2011 6:37 am
The Kerala State Housing Board (KSHB) cannot have such huge turnovers unless these public bodies implement certain innovative solutions and management practices. These Corporations should concentrate only on acquiring lands and developing the peripheral infrastructure much in advance to meet the emerging needs of a vast section of the population. They should sell the housing stock created under this development model only to the less privileged sections. Such an approach will alter the development of Real Estate in Kerala
However, with the government-controlled agencies like the KSHB, the fixed costs are less than five percent. For new Housing Corporations mostly in the private sector, that is keen on applying better technical know-how and implementing innovative management services, the fixed costs are less than two percent. Of the private controlled housing bodies, those that do not create ample social mass housing with speed, to the required quality, in adequate quantity and at reasonable costs, have defeated the purpose of their existence and the government and the public cannot bear the cost incurred by these white elephants in the future.
Due to the march of the market forces, many of the white elephants have already shut shop. It is interesting to note that scores of builders and realtors that were big names in the past have been completely eclipsed and are literally unheard now. The main reason for such a situation is that they never managed the real estate under their control properly. There was no room for innovation and implementation of better management practices were totally ignored. The profit motive was literally absent and the management was more interested in getting on with the daily activities with generous grants and bailouts from the government.
Almost all the leading private professional builders always have many on-going projects in several localities. Even before the completion a building project they are able to sell off the entire units and then concentrate on developing the next one.
However, with the government-controlled agencies like the KSHB, the fixed costs are less than five percent. For new Housing Corporations mostly in the private sector, that is keen on applying better technical know-how and implementing innovative management services, the fixed costs are less than two percent. Of the private controlled housing bodies, those that do not create ample social mass housing with speed, to the required quality, in adequate quantity and at reasonable costs, have defeated the purpose of their existence and the government and the public cannot bear the cost incurred by these white elephants in the future.
Due to the march of the market forces, many of the white elephants have already shut shop. It is interesting to note that scores of builders and realtors that were big names in the past have been completely eclipsed and are literally unheard now. The main reason for such a situation is that they never managed the real estate under their control properly. There was no room for innovation and implementation of better management practices were totally ignored. The profit motive was literally absent and the management was more interested in getting on with the daily activities with generous grants and bailouts from the government.
Almost all the leading private professional builders always have many on-going projects in several localities. Even before the completion a building project they are able to sell off the entire units and then concentrate on developing the next one.
Jenevah- Posts : 1
Join date : 2011-01-29
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