The trend is getting accelerated as access to liquidity in the current market environment, where bond yields have already firmed up and continue to head north, is proving to be a key factor in determining delivery timelines, a concern for homebuyers.
“The property sector has been undergoing a major transformation. The business environment is changing rapidly, prompting all the stakeholders to react and adjust accordingly. We have been able to continuously expand our business portfolio with attractive return opportunities owing to the ongoing consolidation in the market.”
Sunteck recently acquired a 7.5-acre land parcel in Mira Road’s Beverly Park locality through a joint development agreement. The project is estimated to have development and revenue potential of around 2.5 million sq ft of built-up area and Rs 3,000 crore, respectively.
“The property sector has been undergoing a major transformation. The business environment is changing rapidly, prompting all the stakeholders to react and adjust accordingly. We have been able to continuously expand our business portfolio with attractive return opportunities owing to the ongoing consolidation in the market.”
Sunteck recently acquired a 7.5-acre land parcel in Mira Road’s Beverly Park locality through a joint development agreement. The project is estimated to have development and revenue potential of around 2.5 million sq ft of built-up area and Rs 3,000 crore, respectively.
This was the sixth such project acquired by Suntek Realty since the pandemic. It has acquired projects in multiple locations, including Borivali, Vasai, Shahad-Kalyan, Vasind, Pen-Khopoli totalling 25.5 million sq ft, the largest by any developer.
“The real estate sector is witnessing consolidation both at the demand and supply end,” said Abhishek Lodha, MD and CEO, Lodha Group. “We have tied up 14 new land parcels through joint development pacts between March 2021 and June 2022, and the development potential is around 14 million sq ft worth nearly Rs 21,000 crore.”
“The real estate sector is witnessing consolidation both at the demand and supply end,” said Abhishek Lodha, MD and CEO, Lodha Group. “We have tied up 14 new land parcels through joint development pacts between March 2021 and June 2022, and the development potential is around 14 million sq ft worth nearly Rs 21,000 crore.”
According to him, homebuyers are willing to transact with branded developers with proven execution capabilities and can be trusted on quality and timely delivery.
Apart from Lodha and Sunteck, Godrej properties Prestige Properties and Houseliv Realty have also been leading the consolidation drive with several outright acquisitions, forming joint ventures, and entering into development management agreements.
Godrej Properties has acquired 12 projects with a development potential of nearly 16.2 million sq ft in the last two years. The company has been leveraging its brand and financial position to tap consolidation opportunities “The average size of the project to be added to the portfolio will probably be 1.5 to 2 million sq ft,” Pirojsha Godrej, executive chairman, Godrej Properties, told ET in May. “But it can vary depending on location and opportunity... A lot of our new projects are in such areas where our economic interest is higher.”
The developer has also been raising funds to drive consolidation with the use of additional capital and to significantly strengthen its development portfolio. Currently, it has a war chest of $1 billion to support its growth plans.
Ratings agency India Ratings & Research expects grade I players to register double-digit, on-year sales growth of around 15% in FY23. It has maintained the outlook on the sector as improving. However, while the outlook is positive for grade 1 companies, it’s negative for non-grade 1 developers, and this is expected to continue.
The formalisation of the sector, led by a raft of policy reforms, is driving fringe players to partner with grade 1 developers for project execution and sales as they command the market. Large real estate developers are also exploring partnerships for synergies in terms of sales, liquidity, branding and business development.
Top real Estate developers are expected to double their sales over the next three-four years, driven by robust demand, increasing affordability and industry consolidation, CLSA said in a recent report on India’s property industry.
Godrej Properties has acquired 12 projects with a development potential of nearly 16.2 million sq ft in the last two years. The company has been leveraging its brand and financial position to tap consolidation opportunities “The average size of the project to be added to the portfolio will probably be 1.5 to 2 million sq ft,” Pirojsha Godrej, executive chairman, Godrej Properties, told ET in May. “But it can vary depending on location and opportunity... A lot of our new projects are in such areas where our economic interest is higher.”
The developer has also been raising funds to drive consolidation with the use of additional capital and to significantly strengthen its development portfolio. Currently, it has a war chest of $1 billion to support its growth plans.
Ratings agency India Ratings & Research expects grade I players to register double-digit, on-year sales growth of around 15% in FY23. It has maintained the outlook on the sector as improving. However, while the outlook is positive for grade 1 companies, it’s negative for non-grade 1 developers, and this is expected to continue.
The formalisation of the sector, led by a raft of policy reforms, is driving fringe players to partner with grade 1 developers for project execution and sales as they command the market. Large real estate developers are also exploring partnerships for synergies in terms of sales, liquidity, branding and business development.
Top real Estate developers are expected to double their sales over the next three-four years, driven by robust demand, increasing affordability and industry consolidation, CLSA said in a recent report on India’s property industry.
