Excerpt from India Site Visits
While in India we had two excellent site visits. The first was near Delhi on October 30th. The complex is right across the street from the beautiful DLF Golf and Country Club course. There are large shopping centers adjacent to this 780 unit project. Three bedroom units are 2600 square feet and cost $350,000; 4 bedrooms, $500,000; 5 bedrooms, 4,750 square feet, $600,000 and Penthouses for $950,000.
The electrical work looks to be first rate. Parsvnath Developers have 68 similar projects going on throughout India.
Electricians make about 75 cents an hour, have full health care and workmen’s compensation provide by employer. After 10 years of primary school they can enter the training institute and are schooled in the trade for 2 years.
The complex is set on 30 acres. Main power from the utility is split into a loop system of 3 substations. They also have 2–1500 kw generators. Each condo will have a 60 amp 230 volt distribution. Presently, there are 90 electricians working on this project.
India has a national building code, and Gurgaon, the city we are in, has its own electrical code. After some more discussion we thanked our host, Colonel K. P. Singh and his management team for an informative visit.
Our next visit is on November 2 in Jaipur. First we meet with various manufacturers, which are all connected to the India Electrical Equipment Manufactures Association. We talk about how manufacturing has progressed in India.
The labor force pay starts at $4.00 per day. Typically this is a person who has completed 10 years of primary education, reads and writes English, and has had some training.
Next we head out to the Mahima’s Development called Iris. This is a 320 unit condo project. The units here are 2 and 3 bedrooms. The 3 bedrooms are 1700 square feet and sell for $125,000.
The price for land in Delhi is 3 times more than in Jaipur. This particular project is budgeted at $25 million, with a construction cost of $12.5 million. The electrical is a little over $1.2 million.
Mr. Dhirendra Madan is the owner of Mahima Group Real Estate. He started the business 17 years ago with a goal of providing small housing complexes for different income groups. Currently, he also is developing an 861 unit complex.
Housing prices have increased 500% in the last 10 years. Jaipur is the fastest growing city in India and presents great potential for interested investors. We thank the manufacturers and the Mahima management team for an informative visit.