New Delhi [India], Real estate developers and landowners in India have come together to develop 1,546 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, a total of 56 separate Joint Development Agreements (JDAs) were signed in the last 18 months. These deals will help developers expand into new cities and micro-markets and landowners benefit in return.
However, Delhi NCR emerged as the favorite region for developers in terms of number of transactions in the last 18 months (January 2023 to June 2024), with 20 joint development agreements (JDAs) signed, covering approx. 233 acres of land. according to a report by JLL, a real estate company. These deals have the potential for a total development of 36.5 million square feet.
The report highlighted that in Delhi NCR, a significant portion of these agreements, covering 151 acres, were signed in Gurugram alone.
"It's a big number. It's worth noting that while many domestic developers prefer outright land purchases, JDAs (joint development agreements) have emerged as a strategic option as they offer an asset-light approach to regional expansion. .It has benefited both developers and land owners and attracted international developers to the Indian real estate sector,” said Manoj Gaur, Chairman, CREDAI National and CMD of Gaurs Group.
He further added, "What is notable is that NCR, with 20 JDAs covering around 233 acres of land, has emerged as a leader in terms of number of transactions. It is mainly concentrated in the residential segment. Much of this is due to its emergence as a global corporate hub and massive infrastructure development. Demand for luxury housing is also steadily increasing.”
Prominent real estate players have secured multiple binding deals in Gurugram, mainly along the emerging Dwarka Expressway and Southern Peripheral Road corridors. The remaining deals in NCR were made in NCT of Delhi, Ghaziabad, Faridabad and Sonipat.
After Delhi NCR, Bengaluru ranked second with 9 deals 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 major 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 square feet.
Furthermore, several renowned international developers who entered the Indian real estate sector in recent years have chosen to follow this strategy with positive results.
Property developers can gain access to desirable locations in big cities and therefore development deals are an excellent entry strategy for them. Additionally, entering into real estate development agreements can benefit real estate developers by reducing the hassle of obtaining land approvals and complying with regulatory requirements.
On the other hand, owners can unlock the value of their land and take advantage of the execution capabilities and brand value of an established developer. This collaborative approach allows both parties to maximize their advantages and create a successful development.
The report highlighted that of the total 1,546 acres, approx. 990 acres of JDA were signed in 2023 alone, the remaining 556 acres were signed in the first six months of 2024.
The report also states that many domestic developers now prefer direct land purchases and that joint development deals remain a viable option for those seeking to adopt an asset-light strategy while expanding into new regions.
This collaboration between developers and landowners over the past 18 months has generated development potential of more than 120 million square feet.
In terms of area, cities in Gujarat led with a share of 66 per cent. Ahmedabad witnessed three deals covering 720 acres 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.
According to the report, a total of 56 separate Joint Development Agreements (JDAs) were signed in the last 18 months. These deals will help developers expand into new cities and micro-markets and landowners benefit in return.
However, Delhi NCR emerged as the favorite region for developers in terms of number of transactions in the last 18 months (January 2023 to June 2024), with 20 joint development agreements (JDAs) signed, covering approx. 233 acres of land. according to a report by JLL, a real estate company. These deals have the potential for a total development of 36.5 million square feet.
The report highlighted that in Delhi NCR, a significant portion of these agreements, covering 151 acres, were signed in Gurugram alone.
"It's a big number. It's worth noting that while many domestic developers prefer outright land purchases, JDAs (joint development agreements) have emerged as a strategic option as they offer an asset-light approach to regional expansion. .It has benefited both developers and land owners and attracted international developers to the Indian real estate sector,” said Manoj Gaur, Chairman, CREDAI National and CMD of Gaurs Group.
He further added, "What is notable is that NCR, with 20 JDAs covering around 233 acres of land, has emerged as a leader in terms of number of transactions. It is mainly concentrated in the residential segment. Much of this is due to its emergence as a global corporate hub and massive infrastructure development. Demand for luxury housing is also steadily increasing.”
Prominent real estate players have secured multiple binding deals in Gurugram, mainly along the emerging Dwarka Expressway and Southern Peripheral Road corridors. The remaining deals in NCR were made in NCT of Delhi, Ghaziabad, Faridabad and Sonipat.
After Delhi NCR, Bengaluru ranked second with 9 deals 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 major 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 square feet.
Furthermore, several renowned international developers who entered the Indian real estate sector in recent years have chosen to follow this strategy with positive results.
Property developers can gain access to desirable locations in big cities and therefore development deals are an excellent entry strategy for them. Additionally, entering into real estate development agreements can benefit real estate developers by reducing the hassle of obtaining land approvals and complying with regulatory requirements.
On the other hand, owners can unlock the value of their land and take advantage of the execution capabilities and brand value of an established developer. This collaborative approach allows both parties to maximize their advantages and create a successful development.
The report highlighted that of the total 1,546 acres, approx. 990 acres of JDA were signed in 2023 alone, the remaining 556 acres were signed in the first six months of 2024.
The report also states that many domestic developers now prefer direct land purchases and that joint development deals remain a viable option for those seeking to adopt an asset-light strategy while expanding into new regions.
This collaboration between developers and landowners over the past 18 months has generated development potential of more than 120 million square feet.
In terms of area, cities in Gujarat led with a share of 66 per cent. Ahmedabad witnessed three deals covering 720 acres 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.
