Real estate developers: A selection process; Citibank NA

Abstract

The Mortgages Department of Citibank N.A. , India introduced a product Citihome Instant in the Housing Finance Market. The product offers individual housing loans in the range of 2.1 lacs to 50 laces. Citihome Instant requires a tie-up with Real Estate Developers. At present the Mortgages department has a tie-up with 20 developers. The objective of this study is to a) identify suburbs of Bombay which Citibank should target. b) identify new developers and establish a criteria for selecting real estate developers. The scope of this study is restricted to the western suburbs of Bombay . . The study is based on talks with real estate brokers, findings from literature search, ‘meetings with other housing finance companies and visits to real estate developers. The profile of the suburbs gives an indication that Andheri(w), Kandivli, Borivli and Mira Road are suburbs to be targeted. With property prices scaling unheard of heights these are suburbs with affordable rates. Andheri (W) has amenities comparable to Bandra. Kandivli and Borivli have well developed connecting roads, transportation, and commercial facilities. Mira Road has had infrastructural problems but these have been overcome by developers. These suburbs have land available for township development. The under construction projects in these suburbs are offering amenities which are not affordable in suburbs from Dadar to Vile Parle. The developers identified through this study for approval are Ravi Group who have major, township projects in Kandivli, Goregaon and Mira Road. Sheth Group who have been in this business for past 10 years and at present have big projects in Kandivli, Goregaon, Thane, and Mulund. Jangid Group , the group which commands the highest price in Mira Road.