Seeing success in the real estate market is easier said than done. Every day at least a few companies or individuals get started in this business. However, the dropouts and failures are quite high. Only 2 out 10 builders and promoters are able to see the light at the end of the tunnel even after two years. This is because of a number of factors. Those who want to see success in this business need to be patient and persevering.
They should also be able to get access to financing that is competitive and has a long term maturity and repayment period. However, such funds are not easy to come by. We have been able to create a niche in this market, because we have been able to place ourselves properly in the highly competitive housing market. It would be wrong to state that we are only into commercial projects. We also have a lot of very successful residential projects to showcase to our customers. Further, we have a total picture of the market as it is likely to be five to seven years down the line. This is again possible because we always keep a close watch on the current trends and based on this we try and come out with a reasonably accurate picture of the future.
We are also very reputed and experienced in this field and therefore when it comes to arrangement of low cost funds, we have a number of bankers and financial institutions who are ready with their lending teams right at our doorsteps. Our overall rating and creditworthiness is quite envious and hence we do not have much of a problem getting loans almost each and every major banks or financial institutions that one can think of.
We have bifurcated our activities very clearly between commercial projects and domestic projects. This avoids confusion and overlapping of functions. We are also manned by an excellent team of professionals with rich experience. Many of them have been with us for the past many years. Further we are one of the very few property builders and promoters who have their own valuation teams. So, if there is any need for valuation or any commercial or domestic property for any reason, it makes sense to contact us.
Whenever we take up any building project, however big or small it is, there are quite a few things we keep in mind. We start looking for customers only when the entire land acquisition process is over. We arrange for all commercial lending from banks and financial institutions both for ourselves and also our prospective customers. Hence, we are sure that any project that is in the drawing board stage would not take much time to fructify once the final decision to construct the same has been completed.
We also have the ways and means by which we are able to generate funds for repaying the borrowings that we have taken from lenders. We have a big team to look out for renting options for such projects in case they are not sold off. Hence, in fine whether it is outright purchase or for rent purposes, we are there to help our customers at each and every step.
Competition in the real estate and property markets, particular when it is for commercial purposes is seeing intense competition all around. This has resulted in the financial institutions and banks becoming extremely aggressive. This is leading to a reduction in the lending rates and at time it looks ridiculously low. Commercial property developers who are into real estate business are not much worried about the ways and means to raise funds for such big and highly capital intensive commercial projects and buildings.
We are a reputed player in this field and hence are able to take advantage of the improved liquidity that is available in the system now. Compared to the trouble and travails that we had to undergo for raising funds for financing our commercial property projects, today we find the going easy. However, it would be wrong to mention here that banks are becoming aggressive to the point of indiscretion. They are very particular about their lending terms and conditions. We have not been able to face any problems in raising such funds. This is primarily because of our excellent rating with almost all the major banks and financial institutions. When the credit team of the various banks and financial institutions sit and make a valuation of our assets and liabilities they certainly will have no major reason for worry or concern.
This is because of our strong fundamentals and the number of projects that we have completed successfully. Looking at the various trends available from the ground level, we organize and reorganize ourselves. Hence whether it single commercial buildings or big apartments, there is no denying the fact that we stand in a better wicket compared to many other projects that have been built on such commercial lending from banks and financial institutions.
Our vast experience in the real estate market is standing us in good stead as banks and financial institutions are more open and ready to lend for various projects. We also are confident of selling these projects outright or find customers on rent for the same. The rentals that we are confident of getting from these projects will more than take care of the funds we need for servicing the loans that we may have taken from the banks and financial institutions.
Another big reason why the lenders continue to repose their faith on us is our reporting system to the banks. The periodical requirements of reports from banks are adhered to very strictly. Further, whenever we are a bit strong on the cash-flows, we try and retire a part of the debt so that our overall liabilities come down significantly.
Given our successful and fulfilling experience in the commercial property market we are now foraying into the residential property markets. We are confident that our basic fundamentals being what they are, we will be able to create a big impact in this field too. We already have completed a few projects quite successfully and we would like to build on these strengths and experiences and take matters forward.
In find given the positive environment that is now prevalent today, the future looks quite bright for us both in the short term and longer perspectives.