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Challenges of construction in emerging economies

Michael W.J. Thompson (Managing Director, Cushman & Wakefield, India, B 6/8 Safdarjung Enclave, Commercial Complex, New Delhi 110029, India; Tel: +91 11 619 2515; Fax: +91 11 619 5829; e‐mail: mwjt@cushwakeindia.com)

Journal of Corporate Real Estate

ISSN: 1463-001X

Publication date: 1 July 2000

Abstract

The construction of real estate facilities in emerging markets can be challenging due to a variety of unique constraints rarely apparent to the uninitiated. The process of weaving a thread of efficiency in the disarray that exists, while keeping costs to a minumum can be both frustrating and time consuming. Developing market can pose seemingly insurmountable challenges in construction due to existing economic and financial considerations. A lack of infrastructure, complicated bureaucratic procedures, restricted foreign investment, substandard materials, building standards and design and a lack of competitive market forces are further obstacles to the sector. While a simple lease option may appear a more dependable solution, the financial and operational benefits of constructing a ‘Build‐to‐suit’ facility demand that corporates explore innovative solutions that neutralise the difficulties. The resultant strategy, however, has to be flexible enough to address the myriad possibilities of a company’s growth, its contraction or total withdrawal.

Keywords

Citation

Thompson, M.W.J. (2000), "Challenges of construction in emerging economies", Journal of Corporate Real Estate, Vol. 2 No. 3, pp. 250-259. https://doi.org/10.1108/14630010010811365

Publisher

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MCB UP Ltd

Copyright © 2000, MCB UP Limited