Real estate market consolidates with top developers replacing small players
Financial distress, regulatory compliances, oversupply of inventory is forcing unorganised and small real estate developers to either exit the market or join hands with large developers who have a positive track record and have demonstrated their execution capabilities. This has led to consolidation in the market, with more than half of the developers that were active in 2011-12 leaving the market in 2017-18, says a recent report. Consolidation of developers in Gurugram, Noida and Chennai has been to the tune of 70 percent , respectively, since 2011 to date. A considerable reduction in total number of developers by more than 65 percent was also witnessed in Kolkata and Bengaluru in the last six years, respectively. The total number of projects launched across the cities also declined substantially during the same period, says a report by PropEquity, an online subscription based real estate data and analytics platform owned and operated by P.E. Analytics.
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