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 Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?