Development of Property under Joint Venture
Very many old buildings in the cities occupied by its owners and /or by tenants can be turned around to become a high revenue yielding investment by developing and constructing a commercial / retail / apartment building.
Selling a property attracts capital gain tax and one has to pay high stamp duty if one buys an alternate property from its sale proceeds.
Again selling an inherited ancestral property in India is still not socially acceptable option because of the sentimental value attached to it.
Also, one pays much lower municipal taxes on the retained portion in the proposed building than if another property is purchased at the market price out of the sale proceeds of the inherited one. So in most cases developing a property through a professional developer is a better alternative than outright sale.
Redevelopment of dilapidated buildings is a badly felt need for providing the much desired face lift to our cities. Very few developers take up this task because it is very challenging as it requires negotiation with various owners who sometimes are not willing to work together and also require dislocation/relocation of the owners as well as the other occupants/tenants.
PS has taken this as one of their corporate mission not only from business perspective but as a social obligation of a responsible corporate citizen. Over time this has become its major business advantage as they have emerged as the strongest player in this segment of Real Estate Development having developed over 100 properties as Joint Venture with its owners.
As such development requires complete trust of all stakeholders and ability to work with various people having different opinions and mindsets; PS has also emerged as the most trusted developer having extraordinary skills of handling people of not only having different mindsets but also having different backgrounds.