Indian property market is going through a noteworthy changes as half of real estate developers working in 2011-12 across the top nine urban cities have left the business or tied up with huge builders due to a muti-year request slowdown and administrative compliance, as indicated by data analytic firm PropEquity.
Big corporate houses like Tata, Mahindra, Godrej, Piramal and Adani entering in the real estate business and acting as major catalyst for this process.
As stated by PropEquity, the number of developers in nine major cities – Gurugram, Noida, Mumbai, Thane, Pune, Bengaluru, Hyderabad, Chennai and Kolkata – have shrunk by 51 per cent to 1,745 in 2017-2018 from 3,538 in 2011-2012.
There has been a gigantic amalgamation with over 50 per cent of the total developers that was in 2011-2012 leaving the market by 2017-2018, PropEquity said.
Customers are presently searching for engineers with phenomenal track records as far as quality and execution. This will further refine the designer market dependent on their maintainability as far as conveyances and reasonable practices.
As per the data, the number of developers has deteriorated by 70-80 per cent in Gurugram, Noida, and Chennai during the period under review.
Financial agony of small developers, lack of execution competence, oversupply of inventory, GST, demonetization, extreme land banking, lack of understanding of the demand supply dynamics, unfair price appreciation, lack of social and physical infrastructure in emerging markets are all distress creating factors but when seen together are harmful in nature.
This problem has led to consolidation of developer number across the country. The unorganised workers have not been able to adjust accordingly and have suffered having impact on RERA that insists on regulatory compliances.
These small workers have either left the market or have joined hands with larger groups.
Introduction of new RERA have led to transformation of industry for betterment.