Joint Development Agreements: A Winning Strategy for Real Estate Developers and Landowners
Real estate developers and landowners have signed 56 Joint Development Agreements (JDAs) for 1,546 acres of land, offering a development potential of 110 million sq. ft with an estimated gross development value of around ₹99,460 crore.
Joint Development AgreementsReal EstateLand DealsResidential DevelopmentsCommercial ProjectsReal EstateJun 26, 2024
The city share analysis reveals that bigger cities like Delhi NCR, Bengaluru, and Mumbai led in terms of deals, while smaller cities like Ahmedabad and Surat topped the charts in terms of area transacted. Delhi NCR led in terms of number of transactions, with 20 JDAs signed since 2023, covering approximately 233 acres of land. These agreements have the potential for a total development of 36.5 million sq. ft.
Prominent real estate players have signed multiple binding agreements across Gurugram, primarily alongside the emerging corridors of Dwarka Expressway and Southern Peripheral Road. Bengaluru stood second with 9 deals for over 102 acres with a development potential of approximately 11 million sq. ft. Mumbai witnessed 7 transactions spanning across 62.5 acres, with a development potential of 9.9 million sq. ft.
In terms of area, cities in Gujarat led with a share of 66%. Ahmedabad witnessed three deals spanning across 720 acres and Surat saw a single deal of 300 acres.
Joint Development Agreements have proven to be a viable option for developers aiming to adopt an asset-light strategy while expanding into new regions. Development agreements have allowed developers to expand into new cities and micro markets and landowners to benefit in return.
The residential segment has been at the forefront in terms of land Joint Development Agreements (JDAs) signed over the past 18 months. Proposed residential developments have a significant share of more than 97% (1,501 acres) in these signed agreements offering a development potential of 110 million sq. ft with an estimated gross development value of around ₹99,460 crore.
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 therefore development agreements are a great entry strategy for them. Also, entering into land development agreements can benefit real estate developers by reducing the hassle of obtaining land approvals and meeting regulatory requirements.
Frequently Asked Questions
What is the total area of land developed under Joint Development Agreements in the last 18 months?
1,546 acres
What is the estimated gross development value of the signed agreements?
around ₹99,460 crore
Which city led in terms of number of transactions?
Delhi NCR
What is the development potential of the signed agreements in Delhi NCR?
36.5 million sq. ft
Why do developers prefer Joint Development Agreements?
To adopt an asset-light strategy while expanding into new regions and to reduce the hassle of obtaining land approvals and meeting regulatory requirements.
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