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Education sector is lucrative as well as recession proof

WITHthinning demand for real estate and growing cash constraints, many developers are now looking at thriving sectors. They are divesting in non-core businesses such as education with a conviction that it's a recession-proof sector.
Experts believe that the reason behind this shift is a widening demand-supply gap in education sector. It may also be a rational expansion into a different category for developers who have land banks as well as means to raise infrastructure.
High rate of return on investment coupled with huge demand-supply gap is attracting realtors to this sector, who will be comfortable setting up the required infrastructure.
Express Estates finds the issue debatable : "With real-estate players getting into education sector, will they be able to do justice to it? Will it be an inequitable distribution of attention, education sector being a non-core business for most of them?"
Speaking for such developers is SANJEEV J AEREN, MD of AEZ Group. The group has recently announced a tie-up with Mother's Pride, a chain of schools, by investing Rs 500 crore in the company.
Debating with him is PROF PSN RAO, head, department of housing, School of Planning and Architecture, New Delhi. He is also the founder-chairman of National Association of Realtors-India (NAR-INDIA).


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Posted in: News by NewsBot on June 2, 2009 @ 12:00 AM



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