Indian Real Estate Sees Surge in Joint Development Agreements
Joint development agreements for 1546 acres of land inked in the last 18 months, with a focus on residential projects in Delhi NCR, Bengaluru, and Mumbai.
Indian Real EstateJoint Development AgreementsResidential ProjectsDelhi NcrBengaluruMumbaiReal Estate NewsJun 26, 2024
The city share analysis reveals that bigger cities like Delhi NCR, Bengaluru, and Mumbai lead in the number of deals, while smaller cities like Ahmedabad and Surat top the charts in terms of area transacted. Delhi NCR leads in terms of number of transactions, with 20 JDAs signed since 2023, covering approximately 233 acres of land. Bengaluru stood second with 9 deals for over 102 acres, and Mumbai witnessed 7 transactions spanning across 62.5 acres.
Real estate developers prefer JDAs as they allow for an asset-light strategy while expanding into new regions. Many national developers now prefer outright land purchases, but joint development agreements remain a viable option. Development agreements have proven to be highly successful, allowing developers to expand into new cities and micro-markets and landowners to benefit in return.
The demand for housing has been steadily increasing in recent years, prompting real estate developers to consistently introduce new housing projects. In 2023, there was a significant increase in the number of new housing units launched across the top 7 cities of India, demonstrating a growth of 19% when compared to 2022.
Looking ahead, JDAs are poised to remain an attractive strategy, presenting a win-win solution for all stakeholders involved. Real estate developers can gain access to desirable locations in big cities, and development agreements are a great entry strategy for them. Landowners can unlock the value of their land and leverage the execution capabilities and brand value of an established developer.
Frequently Asked Questions
What is the total area of land covered under Joint Development Agreements (JDAs) in the last 18 months?
1,546 acres
What is the estimated gross development value of the residential projects?
around ₹99,460 crore
Which cities lead in terms of number of deals?
Delhi NCR, Bengaluru, and Mumbai
Why do developers prefer JDAs?
JDAs allow for an asset-light strategy while expanding into new regions.
What is the growth rate of new housing units launched in 2023 compared to 2022?
19%
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