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 Energy

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Next Story
Infrastructure Energy

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Next Story
Infrastructure Energy

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?