STOCK MARKET BSE NSE

Over 50 per cent builders exit top real estate markets due to entry of large players in nine Indian cities

The data shows that the number of developers has declined by a staggering 70-80 per cent in Gurugram, Noida, and Chennai during the period under review.

Published: 09th July 2019 11:15 AM  |   Last Updated: 09th July 2019 11:15 AM   |  A+A-

construction, building, architecture, civil engineering, Real Estate

For representational purposes

By Express News Service

A long-drawn sales slowdown coupled with the entry of large players has forced over 50 per cent of developers to exit the realty market in top nine Indian cities, with the number of operating developers going down from 3,538 in 2011-12 to just 1,745 in 2017-18.

Experts hint that there could be more churn in the space going forward.

According to a report by data analytics firm PropEquity, the number of developers in nine major cities — Gurugram, Noida, Mumbai, Thane, Pune, Bengaluru, Hyderabad, Chennai, and Kolkata, has shrunk by 51 per cent in just six years from FY 2011-12 to FY 2017-18.

The data shows that the number of developers has declined by a staggering 70-80 per cent in Gurugram, Noida, and Chennai during the period under review.

ALSO READ: Ministry of Housing and Urban Affairs mulls common online platform for Real Estate act

Kolkata, Bengaluru and Hyderabad saw a drop of 60-65 per cent in the number of operating builders, while this number stood at 48 per cent in Thane, 32 per cent in Mumbai and 19 per cent in Pune.

Most of the small-scale developers in these cities have either exited the market or joined hands with larger developers, the report said, adding that the implementation of the new realty law RERA is also leading to the transformation of the industry for the better.  

Unorganised players in the segment have been unable to cope up with mounting issues in the market year-after-year, with the RERA rollout and increased regulatory compliance taking its toll too.

Further, the entry of big corporates like Tata, Mahindra, Godrej, Piramal, and Adani in this business, and delays in delivery of apartments to buyers, have been a major catalyst for this consolidation process.

As a result of this consolidation, PropEquity said, the share of top 10 developers operating in each of these nine cities has increased in terms of both sales as well as launches.

 

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp