New Delhi [India], June 27 (ANI): The real estate developers and the landowners in India have joined hands to develop 1546 acres of land in the last 18 months (January 2023 to June 2024), according to a report by JLL, a real estate company.
According to the report, in the last 18 months, a total of 56 separate Joint Development Agreements (JDAs) were signed. These agreements will help the developers to expand into new cities and micro markets and landowners to benefit in return.
However, the Delhi NCR emerged as the favourite region for the developers in terms of the number of transactions in the last 18 months (January 2023 to June 2024), with 20 Joint Development Agreements (JDAs) signed, covering approximately 233 acres of land, according to a report by JLL, a real estate company. These agreements have the potential for a total development of 36.5 million sq. ft.
The report highlighted that in Delhi NCR, a significant portion of these deals, covering 151 acres, were signed in Gurugram alone.
“It is a big number. It is worth noting that even though many national developers prefer outright land purchases, (Joint Development Agreements) JDAs have emerged as a strategic choice as they offer an asset-light approach to regional expansion. It has benefited both developers and landowners and attracted international developers to the Indian real estate sector” said Manoj Gaur, Chairman, CREDAI National and CMD, Gaurs Group.
He further added “What is remarkable is that NCR, with 20 JDAs covering around 233 acres of land, emerged as a leader in terms of the number of transactions. It is mostly concentrated in the residential segment. Much of it is due to its emergence as a global corporate hub and massive infrastructural development. The demand for luxury housing is also steadily increasing”.
The prominent real estate players have secured multiple binding agreements in Gurugram, primarily along the emerging corridors of Dwarka Expressway and Southern Peripheral Road. The remaining deals in NCR were in the NCT of Delhi, Ghaziabad, Faridabad, and Sonipat.
Following Delhi NCR, Bengaluru stood second with 9 deals for over 102 acres, with a development potential of approximately 11 million sq. ft. Multiple deals were recorded in Yelahanka, Whitefield, and Old Madras Road, including a significant transaction in North Bengaluru covering over 60 acres, while Mumbai witnessed 7 transactions across 62.5 acres, with a development potential of 9.9 million sq. ft.
Additionally, several well-known international developers who entered the Indian real estate sector in recent years have chosen to follow this strategy with positive results.
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.
On the other hand, landowners can unlock the value of their land and leverage the execution capabilities and brand value of an established developer. This collaborative approach allows both sides to maximize their advantages and create successful development.
The report highlighted that out of the total 1,546 acres, approx. 990 acres of JDAs were signed in 2023 alone, the remaining 556 acres were signed in the first six months of 2024.
The report also stated that many national developers now prefer outright land purchases and the joint development agreements remain a viable option for those aiming to adopt an asset-light strategy while expanding into new regions.
This collaboration between the developers and landowners in the last 18 months has yielded a development potential of over 120 million sq. ft.
In terms of area, cities in Gujarat led with a share of 66 per cent. Ahmedabad witnessed 3 deals spanning across 720 acre and Surat saw a single deal of 300 acres. Looking ahead, JDAs are poised to remain an attractive strategy, presenting a win-win solution for all stakeholders involved. (ANI)
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