Mergers and acquisitions for faster growth
Mergers and acquisitions are very much part of the corporate world. The real estate sector is also now witnessing this global trend. Major brands in the real estate sector, had a operations only in the metros and in other booming cities in India. When they started moving to other cities, they had to build the brand from the scratch, which demanded much effort and higher expenses in advertising.
The only way out was to scout for mergers and acquisitions. An analysis of the real estate developers and other Builders for Sale reveals that most of them were diversifying into other businesses and thus wanted to sell off their real estate business. In certain locations, some of the builders even offered to hand over ongoing projects at reduced prices to the leading real estate developers.
When a major real estate developer was acquiring a small builder, the customers who have invested their hard earned incomes are given a better deal. The major realtors have the means and the necessary finances to complete and deliver quality apartments in record time and to strict deadlines. They have a tradition in keeping promises made in the agreements signed with the customers.
Real estate appreciation especially in the case of high-rise apartments and office complexes has much to do with the reputation of the real estate developer. The major real estate developers have a tradition in building high quality apartments that are built to last for a lifetime. Such apartments normally fetch higher prices when they are resold after a period of time.