The adoption of professional management practices from the pre-occupancy stage optimizes a real estate asset's performance and reduces its operating costs. This beneficial confluence of process efficiencies and cost savings is possible because Property & Asset Management can assemble various resources, capabilities and technologies across the lifecycle of a real estate project to achieve the best possible delivery outcomes.
The Indian PAM Scenario Today
With the growth of the Indian real estate market over the past decade and the increased focus on the quality of buildings by buyers and sellers, Property & Asset Management will play a vastly amplified role in the immediate and long-term future. Developers as well as companies have understood and accepted that professional management of a property results in very significant cost savings, increased customer satisfaction via improved environment, and better safety levels.
Outsourcing PAM services enables developers to concentrate on their core business and leverage the expertise of specialized service providers. Developers now engage the services of International Property Consultants (IPCs) to deliver their requirements for PAM, which is no longer viewed as a luxury expense but as an effective tool for property maintenance, management and optimization. This change in mind-set is very evident in the increasing number of housing societies that now use professional property management services by IPCs as a matter of course.
While the PAM industry in India is doubtlessly still at a nascent stage, it is evolving rapidly as a result of the fast pace of growth in the construction sector. With a massive supply of real estate projects coming in the near future, the availability of high-quality property maintenance and management will be a distinguishing factor for the consumers of these projects.
(Ramesh Nair is the COO of Business, Jones Lang LaSalle India)