New technologies to cut cost
Realty majors adopting new technologies to cut costs
ALTERNATIVE CONSTRUCTION MATERIALS GAINING CURRENCY
MOVING one step closer to affordability, real estate developers are realising the importance of innovative construction technologies to reduce costs and monitor effective quality controls. Though awareness on the subject is still at a nascent stage, the use of alternative technologies such as tunnel form technology, table forms and flyash is increasingly gaining acceptance by realty firms as an ideal way to economise costs.
For instance, Red Fort Capital, a leading international private equity real estate firm, for instance has developed ‘Fly ash based Cellular Lightweight Concrete,’ a technology that can help to save up to 10% in the construction cost for high rise structures while using eco-friendly materials. It also boasts of faster constructions, promoting sustainability and a healthy environment for the occupants. Says G B Singh, director and founding partner, Red Fort Capital Advisors, “The cost reduction could be in the range of as much as 10%-15%. There is a tremendous shortage of ‘affordable housing’ in this country. Hence, such a move could greatly benefit the real estate sector as a whole.”
The use of recycled fly ash, a waste by-product of coal combustion, is one available route in construction. Other materials that can be effectively used to construct cheap, yet durable houses include hollow concrete blocks, interlocking bricks, stabilised mud-based blocks, rubble filler blocks, concrete door and window frames and funicular (rope-like) shells. Says Pankaj Renjhen, MD (Mumbai), Jones Lang Lasalle Meghraj (JLLM), “This kind of construction involves the use of premanufactured components like roof and floor trusses that can be assembled quickly with major savings on construction time and labour costs. Construction costs can be reduced by a minimum of 10-15% in terms of materials and up to 20% in terms of skilled manpower expenses and construction time.”
Real estate majors Parsvnath Developers and Ansal API feel that using appropriate technology is extremely important in any project. Parsvnath Developers make use of concrete technology that helps in quality improvement and reduces costs by 5-7%. Even Ansal API tied up with UEM Builders, a subsidiary of Malaysia’s largest Conglomerate UEM Group to carry out construction and engineering work in India. Says Kunal Banerji, president, marketing, Ansal API, “The organised players in the realty sector are fast adopting such methods to improve efficiency and speed in delivery of projects. The impact of such a move on the industry will be tremendous in the long run.”
Agrees B P Dhaka, COO, Parsvnath Developers, who feels that any promising developer will resort to prudent buying and the use of innovative construction technology to meet the time and cost schedule of delivery.
However, despite benefits, the use of such technologies is still not a popular route among developers in India. Erroneous assumptions exist that the use of cost-effective construction materials results in inferior structures. Potential buyers have concerns about the safety, durability and resale value if a building has been built with anything but conventional materials and technologies. Adds Renjhen of JLLM, “The primary challenge lies in convincing occupiers of the inherent value of such projects, and also to educate developers on the long-term business potential. There needs to be a greater level of awareness.”
ALTERNATIVE CONSTRUCTION MATERIALS GAINING CURRENCY
MOVING one step closer to affordability, real estate developers are realising the importance of innovative construction technologies to reduce costs and monitor effective quality controls. Though awareness on the subject is still at a nascent stage, the use of alternative technologies such as tunnel form technology, table forms and flyash is increasingly gaining acceptance by realty firms as an ideal way to economise costs.
For instance, Red Fort Capital, a leading international private equity real estate firm, for instance has developed ‘Fly ash based Cellular Lightweight Concrete,’ a technology that can help to save up to 10% in the construction cost for high rise structures while using eco-friendly materials. It also boasts of faster constructions, promoting sustainability and a healthy environment for the occupants. Says G B Singh, director and founding partner, Red Fort Capital Advisors, “The cost reduction could be in the range of as much as 10%-15%. There is a tremendous shortage of ‘affordable housing’ in this country. Hence, such a move could greatly benefit the real estate sector as a whole.”
The use of recycled fly ash, a waste by-product of coal combustion, is one available route in construction. Other materials that can be effectively used to construct cheap, yet durable houses include hollow concrete blocks, interlocking bricks, stabilised mud-based blocks, rubble filler blocks, concrete door and window frames and funicular (rope-like) shells. Says Pankaj Renjhen, MD (Mumbai), Jones Lang Lasalle Meghraj (JLLM), “This kind of construction involves the use of premanufactured components like roof and floor trusses that can be assembled quickly with major savings on construction time and labour costs. Construction costs can be reduced by a minimum of 10-15% in terms of materials and up to 20% in terms of skilled manpower expenses and construction time.”
Real estate majors Parsvnath Developers and Ansal API feel that using appropriate technology is extremely important in any project. Parsvnath Developers make use of concrete technology that helps in quality improvement and reduces costs by 5-7%. Even Ansal API tied up with UEM Builders, a subsidiary of Malaysia’s largest Conglomerate UEM Group to carry out construction and engineering work in India. Says Kunal Banerji, president, marketing, Ansal API, “The organised players in the realty sector are fast adopting such methods to improve efficiency and speed in delivery of projects. The impact of such a move on the industry will be tremendous in the long run.”
Agrees B P Dhaka, COO, Parsvnath Developers, who feels that any promising developer will resort to prudent buying and the use of innovative construction technology to meet the time and cost schedule of delivery.
However, despite benefits, the use of such technologies is still not a popular route among developers in India. Erroneous assumptions exist that the use of cost-effective construction materials results in inferior structures. Potential buyers have concerns about the safety, durability and resale value if a building has been built with anything but conventional materials and technologies. Adds Renjhen of JLLM, “The primary challenge lies in convincing occupiers of the inherent value of such projects, and also to educate developers on the long-term business potential. There needs to be a greater level of awareness.”