Massive developer consolidation in top nine cities
Real Estate

Massive developer consolidation in top nine cities

There has been a massive developer consolidation in the top nine cities in India, with over 50 per cent of the total developers that existed in 2011-12 leaving the market by 2017-18, according to PropEquity Research.

Consolidation of developers in Gurugram, Noida, and Chennai has been to the tune of 70 per cent since 2011 to date. A considerable reduction in the total number of developers by over 65 per cent was also witnessed in Kolkata and Bengaluru in the past six years. The total number of projects launched across the cities also declined substantially during the same period.

As a result of this consolidation, the project share of the top 10 developers has increased across the cities from 2011 to 2018. The total number of projects launched by the top 10 developers in Gurgaon and Noida today stands at 55 per cent and 78 per cent, respectively, while in 2011, it was 28 per cent and 52 per cent. This clearly indicates that Noida and Gurugram have witnessed an increase of 27 per cent in the number of projects being launched by the top 10 developers since 2011. Samir Jasuja, Founder and Managing Director, PropEquity, says, “Consumers are now looking for developers with excellent track records in terms of quality and execution.”


Financial distress of small developers, lack of execution capability, oversupply of inventory, GST, demonetisation, excessive land banking, lack of understanding of demand-supply dynamics, unjustified price appreciation and lack of social and physical infrastructure in emerging markets are all distress-creating factors—and when they occur together, it is the perfect storm. 

Interestingly, this storm started building way back in 2010. Maximum launches in India were witnessed from 2010 to 2013, leading to a situation of high supply and consequent absorption being largely led by investors. “Today, the effects of this storm have led to the consolidation of developer numbers across India,” adds Jasuja. “The unorganised players have been unable to cope with these year-on-year mounting market issues with the final impact of RERA that insists on regulatory compliances.” 

There has been a massive developer consolidation in the top nine cities in India, with over 50 per cent of the total developers that existed in 2011-12 leaving the market by 2017-18, according to PropEquity Research.Consolidation of developers in Gurugram, Noida, and Chennai has been to the tune of 70 per cent since 2011 to date. A considerable reduction in the total number of developers by over 65 per cent was also witnessed in Kolkata and Bengaluru in the past six years. The total number of projects launched across the cities also declined substantially during the same period.As a result of this consolidation, the project share of the top 10 developers has increased across the cities from 2011 to 2018. The total number of projects launched by the top 10 developers in Gurgaon and Noida today stands at 55 per cent and 78 per cent, respectively, while in 2011, it was 28 per cent and 52 per cent. This clearly indicates that Noida and Gurugram have witnessed an increase of 27 per cent in the number of projects being launched by the top 10 developers since 2011. Samir Jasuja, Founder and Managing Director, PropEquity, says, “Consumers are now looking for developers with excellent track records in terms of quality and execution.”Financial distress of small developers, lack of execution capability, oversupply of inventory, GST, demonetisation, excessive land banking, lack of understanding of demand-supply dynamics, unjustified price appreciation and lack of social and physical infrastructure in emerging markets are all distress-creating factors—and when they occur together, it is the perfect storm. Interestingly, this storm started building way back in 2010. Maximum launches in India were witnessed from 2010 to 2013, leading to a situation of high supply and consequent absorption being largely led by investors. “Today, the effects of this storm have led to the consolidation of developer numbers across India,” adds Jasuja. “The unorganised players have been unable to cope with these year-on-year mounting market issues with the final impact of RERA that insists on regulatory compliances.” 

Next Story
Infrastructure Transport

NF Railway Launches Girder on World’s Tallest Pier Bridge in Manipur

The Northeast Frontier Railway (NFR) has reached a significant engineering milestone by successfully completing the girder launch on the iconic Noney Bridge in Manipur.Regarded as an engineering marvel, the Noney Bridge is recognized as the world’s tallest railway pier bridge. It forms a crucial part of the 111 km long Jiribam-Imphal railway line project.Recently, the final span of the bridge was successfully erected, marking the completion of all eight spans of this monumental infrastructure venture.Kapinjal Kishore Sharma, Chief Public Relations Officer of NFR, stated that this accomplishm..

Next Story
Infrastructure Urban

Cube Highways Trust Reports Rs 34.53 Bn Total Income in FY25

Cube Highways Trust (Cube InvIT), managed by Cube Highways Fund Advisors, concluded its second financial year post-listing on a strong note by reporting a total consolidated income of Rs 34.53 billion for the financial year 2025, marking a 12.3 percent year-on-year (YoY) increase.According to the official media release, Cube InvIT posted a consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 2,380 crore, reflecting a 21.7 percent YoY growth. During the year, traffic volumes increased by 6.2 percent, while the Asset Under Management (AUM) grew 25 percent to ..

Next Story
Infrastructure Transport

New Flyover to Ease Traffic on Hyderabad’s Busiest Road

To improve urban connectivity and reduce traffic congestion in the city, the Greater Hyderabad Municipal Corporation (GHMC) will undertake the construction of a two-lane unidirectional flyover at NFCL Junction in Banjara Hills, along with a two-lane unidirectional underpass and a three-lane unidirectional flyover at TV9 Junction, as part of the state government’s prestigious Hyderabad City Innovative and Transformative Infrastructure (H-CITI) programme.The NFCL Junction flyover will be a two-lane unidirectional structure extending from Banjara Hills Road No. 3 towards GVK Mall. It is planned..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?