The Man Behind the Show – Sushil Mohta

The Merlin Group is a renowned name in the world of real estate. With the core of the business as housing the group has now expanded its activities to various commercial complexes including malls, office buildings, townships etc. Having set up its roots in the heart of Kolkata, more than three decades ago, Sushil Mohta, the Managing Director of the company has propelled the group forward.

Born in a Marwari family in Kolkata, Mohta idolized his father who was a self-made man. From a very young age, he learnt to dream big, and wanted to surpass his father’s  achievements andmake his family proud. Having completed his education from St. Xaviers in Kolkata at the ripe age of 17 he started helping his father in the family business. Here he gained much experience which equipped him with the business and people management skills he required in the later years when he started with his own real estate business.

Since the family’s business was ball bearings, his foraying into the real estate business seemed unusual at the time, especially since real estate was not a booming market back then. But as is the case with every true visionary he saw the potential of this market and stood by his choice.  In a market condition that was mostly dominated by the unorganized sector, he started and ran his business on corporate principles, which brought a degree of professionalism to this sector. After several years of hard work and many lessons learnt it was around 1990, that he created the Merlin brand, and ever since then there has been no looking back!

Latest from the World of Real Estate

The real estate industry in India has been suffering due to the consequences of the economic slowdown over the last few years. In order to boost the flow of funds in this sector, the government of India is considering making some drastic changes with regards to Foreign Direct investment (FDI).

According to the suggestions from the urban development ministry, real estate firms with less than 50% foreign ownership are to be exempted from all restrictions including the minimum area norms. This is to attract foreign capital, even those who do not have specific long term interest. Another motive is to allow the players of this segment to raise funds from foreign institution to support the finances, thus fulfilling a dual role of keeping the inflow of cash for construction without imposing on the already strained domestic financial institutions.

A similar proposal has been suggested for foreign investment in slum redevelopment and urban renewal projects, as well as for foreign investors picking up more than 50% stake major relaxation of policies has been advocated. This includes permission to purchase farmland for the firms funded by FDI, as well as reduction of the minimum land parcel size for plotted development to 5 acres from 10 hectares. Foreign investors will now also be allowed to sell underdeveloped plots, though the Indian companies will need to provide the infrastructure and undertake development before occupancy. These changes in the rules for FDI in real estate are deemed to bring about a positive outlook in the sector and thus keep the real estate a booming sector as ever.

The Real Estate Market in India

India’s economy has been fluctuating considerably over the last two years. The country has been battling several economic issues like food inflation, falling currency value, fiscal deficit, etc. which have had a direct impact on the real estate market in India. This is especially relevant for the residential property market since the economic prosperity of the citizens is directly proportional to the demand for homes.

In the first half of 2013, major cities like Delhi, Mumbai and Chennai have seen a sharp decline in the sale of residential properties. Though Bangalore and Pune have done better, because of the IT expansion in these cities, it is so only by marginal standards. One of the key reasons of this is that the prices of properties in the major cities have been rising despite the fall in demand. According to data collated by Global Property Guide, property prices in Delhi have seen the sharpest spike over the last year, by almost 60%, higher than in any of the other cities from the 43 countries surveyed. Property prices in Mumbai have gone through the roof making the city all the more unaffordable. Under these circumstances the only recourse is for thecities to expand their boundaries and the builders and developers to lower their profit margins and price expectations, so as to keep the market green and going.