The real estate industry is observing a consolidation series of reforms including new regulations that are diminishing the smaller and not-so-serious entities.
As per the data provided by the PropEquity Research, across 9 cities in India, 50% of the small developers that existed between 2011-12, have left the market thus making way for bigger sharks by 2017-18.
Consolidation of developers in Gurugram, Noida, and Chennai has been to the tune of 70% respectively since 2011. Even Kolkata and Bengaluru have witnessed a drastic fall by 65% in their developers in the last 6 years. This has resulted in a decrease in projects across the cities during this period.
As a result of this consolidation, the project share of the top 10 developers has increased across the cities during the time period 2011 to 2018.
The
total number of projects launched by the top ten developers in Gurugram and
Noida today stands at 55% and 78% respectively while in 2011 it was 28% and
52%, respectively. This indicates that Noida and Gurugram have witnessed an
increase of 27% in the number of projects being launched by the top ten
developers since 2011.Due to the lack of
financial stability and the liquidity crunch, most of the unorganized
developers have failed to deliver their projects. These small scale developers
did not have the financial strength to adapt to the new system and practices.
