Until nearly a decade ago, real estate developers—particularly residential players—rarely ventured beyond their home markets. The lack of clarity in land and property development laws, absence of reliable land ownership records and opaque approval processes discouraged large-scale, cross-regional expansion. This environment largely favoured small, local players who owned land but often lacked execution capabilities.
The introduction of the Real Estate (Regulation and Development) Act (RERA) and the Union government’s land-record digitisation drive marked a turning point for the sector. Greater regulatory scrutiny, escrow norms and disclosure requirements led to consolidation, with several smaller developers exiting the business due to inadequate financial strength or fraudulent practices such as diversion of customer funds.
This regulatory clarity has encouraged southern developers—known for financial discipline, process orientation and timely delivery—to explore markets in North, West and East India. Over the past few years, several have expanded their portfolios nationally, transitioning into pan-India developers.
Niranjan Hiranandani, founder and chairman of the Hiranandani Group, said southern developers have built a strong reputation for quality construction and delivery discipline, which has resonated with homebuyers in northern markets. “Their entry coincides with a phase of structural consolidation, where customers increasingly prefer branded developers. RERA-driven transparency, improving infrastructure in NCR, and rising demand for mid- and premium housing have created a conducive environment for expansion,” he said.
He added that northern markets offer larger scale and faster sales velocity, enabling quicker growth supported by institutional capital.
Mallanna Sasalu, CEO of South India operations at Puravankara Group, said southern developers tend to be more customer-centric. “There are fewer intermediaries. Customers interact directly with developers, which improves trust and accountability,” he said.
According to Praveer Shrivastava, senior executive vice-president (residential) at Prestige Group, listed developers see significant scope to expand into newer cities to drive growth and boost topline performance.
Challenges in new markets
Despite the opportunities, entering new geographies presents its own set of challenges. Murali Malayappan, chairman and managing director of Shriram Properties Ltd, said developers must overcome issues related to market understanding, customer behaviour, regulatory navigation, local partnerships and adapting to regional construction ecosystems. “These challenges are common to any geographical expansion and not unique to North India,” he said.
Labour availability and skill quality also vary across regions. Hiranandani pointed to regional disparities, noting that southern markets benefit from proximity to technical institutions and a relatively stable workforce. “Northern markets rely more on interstate migrant labour, which can lead to periodic supply inconsistencies,” he said.
However, he added that the construction sector is gradually formalising, with skilling initiatives by the National Skill Development Corporation (NSDC), NAREDCO, CREDAI and private training platforms aimed at creating a steady pipeline of skilled workers. NAREDCO estimates a national shortage of nearly two million skilled construction workers in 2024–25.
Arun Bharathi, managing director of GTB Urban Developers, said competition from Gulf countries has driven construction wages in the South up by 8–10% annually, making labour both scarce and expensive. “Northern markets have easier access to manpower but face a quality deficit. Ministry of External Affairs data for 2024 shows Uttar Pradesh and Bihar remain the top labour-exporting states to GCC countries,” he said.
Impact of RERA
Implemented in 2016, RERA and land digitisation norms have significantly altered the sector’s operating framework. Provisions such as mandating developers to park 70% of customer collections in escrow accounts have reduced defaults and curtailed fund diversion. RERA also standardised carpet-area definitions and strengthened disclosure norms.
Bala Ramajayam, founder and managing director of G Square, said RERA has fundamentally reshaped the industry by introducing transparency, accountability and consumer protection. “Mandatory project registration, strict escrow management, clear disclosure of approvals and timelines, and penalties for delays have created a more disciplined operating environment,” he said, adding that these measures have restored buyer confidence and reduced malpractice.
He also highlighted the role of complementary reforms, citing Tamil Nadu’s recently notified single-window approval system as a major boost to project speed and transparency.
Mallanna of Puravankara said RERA protects both buyers and developers. “If a group of buyers defaults on payments, they lose the right to question developers on delivery delays or other violations,” he said.
Collaborations and consolidation
Several southern developers are also partnering with established players in western and northern India to scale operations. One example is Chennai-based GTB Urban Developers’ collaboration with the Hiranandani Group to develop a senior citizens’ township in Oragadam, Kancheepuram district.
Bharathi said smaller and mid-sized developers must focus on complementary strengths to scale effectively. “Large developers bring legacy and infrastructure expertise, while specialised players like us offer agility and innovation,” he said.
Shrivastava of Prestige Group noted that many landowners now recognise their inability to comply with RERA and regulatory norms independently. “They increasingly enter joint development agreements with reputed developers. This has led to consolidation on both the supply and demand sides, as homebuyers prefer developers with a proven delivery track record,” he said.