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The current market environment has accelerated access to liquidity, and bond yields have already risen, making it a key factor in determining delivery dates, a concern for homebuyers.
Kamal Ketan, Chairman of Suntec Realty said, “The real estate sector is undergoing a major transformation. “The business environment is changing rapidly, prompting all stakeholders to respond and adjust accordingly. Continued consolidation in the market has allowed us to continue to expand our business portfolio with attractive return opportunities.”
Sunteck recently acquired a 7.5 acre parcel in the Beverly Park area of Mira Road through a joint development agreement. The projects are estimated to have a building area of approximately 2.5 million square feet and a development and revenue potential of NOK 3,000 each.
This was the sixth project acquired by Suntec Realty since the pandemic. It is the largest developer to acquire a total of 25.5 million square feet of projects across multiple locations including Borivali, Vasai, Shahad Kalyan, Vasind and Penn Kopoli.
Abhishek Lodha, MD and CEO of Lodha Group, said: “From March 2021 he has signed 14 new land parcels through joint development agreements until June 2022. The potential for development is around 14 million square feet worth around NOK 21,000.”
According to him, homebuyers are willing to deal with branded developers with proven execution capabilities that they can rely on for quality and timely delivery.
Apart from Lodha and Sunteck, Godrej Properties, Prestige Estates Projects and Oberoi Realty are also leading the integration with several outright acquisitions, forming joint ventures and entering into development management agreements.
Godrej Properties has acquired 12 projects with development potential of nearly 16.2 million square feet in the last two years. The company has leveraged its brand and financial position to capitalize on integration opportunities.
“The average size of projects added to the portfolio will probably be 1.5 million to 2 million square feet,” Pirojsha Godrej, executive chairman of Godrej Properties, told ET in May. “But that can vary by location and opportunity…Many of our new projects are in areas of higher economic interest to us.”
Developers are also using additional capital to drive consolidation and raise capital to significantly enhance their development portfolios. Now he has a $1 billion war chest to support his growth plans.
Ratings agency India Ratings & Research expects the Grade I player to record double-digit year-on-year revenue growth of around 15% in FY2023. The outlook for the sector continues to improve. However, while the outlook for Grade 1 companies is positive, it is negative for non-Grade 1 developers, and we expect this trend to continue.
The formalization of the sector, ushered in by numerous policy reforms, has led fringe players to dominate the market by partnering with Grade 1 developers for project execution and distribution. Large real estate developers are also looking for synergistic partnerships in terms of distribution, liquidity, branding and business development.
According to CLSA’s recent report on the Indian real estate industry, top property developers expect their sales to double in the next three to four years due to strong demand, rising affordability and industry consolidation. Expected.
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