The pace of integration in the country’s real estate sector is going to be fast as the trend of customers is moving towards Grade A Developers. Developers of this category are handing over the houses to customers at the scheduled time without any delay. According to Iqra, the market share of major listed developers has increased in the percentage of total selling price. Top officials and industry experts of major companies said that companies established with sufficient amount would have more than 50 per cent inventory during the coming years.
Akash Ohri, Joint Managing Director and Chief Business Officer of DLF Home Developers Limited, told Business Standard, “Integration is happening due to the previous work of others. It is not that people did not give them opportunities. You cannot play with people with money. After the arrival of RERA, the accountability of developers has increased considerably and the government’s attitude is also very strict. This is changing the system. The first developers have not only delayed many residential projects but have also missed the repayment of bank loans. He pushed hundreds of house buyers into financial crisis and some people’s saving saving got caught in their incomplete projects. In such a situation, he had to plead with the government and the courts for relief. Since then strict criteria were prepared for the region and the Real Estate Regulation Act (RERA) was implemented.
Managing Director and Chief of Tata Realty and Infrastructure Executive Sanjay Dutt said, ‘Regulatory reforms with RERA, Debt Recognition and Insolvency Code (IBC), market regulator SEBI and other measures by the Reserve Bank of India have ensured that only developers with disciplined and professional perspectives will be successful in the current competitive market.’
Policy reforms have helped develop the developers from the market who were not reliable and were not complying with the rules. Such developers finally had to be out of the market and helped to form the unorganized sector formal.
Abhishek Lodha, managing director of Macrotech Developers (Lodha), told analysts associated with the results of the fourth quarter of 2025, “The consumers, lenders and landlords in the real estate sector are being integrated on all three fronts. The attitude of the three is very clear that they want to work with a few developers as a buyer or partner or seller or lender. ‘
Anuj Puri, chairperson of the Real Estate Advisory firm Enerok Group, said that 35 to 40 per cent market share in the residential area is with Grade A Developers. This includes listed and large companies. Pradeep Aggarwal, founder and chairman of Signature Global India, said, “The market share of all branded companies was 17 percent in 2017. But today this figure has increased to more than 35 percent. It is expected to cross 50 per cent in the next few years. Big companies will acquire small.
Anupama Reddy, vice-president of rating agency Ecra and co-group head (corporate rating), said that the major developers listed in the total selling price were 10.3 per cent in FY 2019, which increased to 15.1 per cent in FY 2024.
Vikas Anand, Assistant Director of India Ratings and Research, said that the market share of Grade A or Tier-1 developers increased from FY 2021 during FY 2023. This has led to an increase in joint enterprises and joint projects in the real estate sector. He said, ‘Tier-1 residential companies still remain a pioneer. They are registering tremendous sales as they are being integrated in the market and their credibility and brand identity among customers is strong.
The increase in sales before the completion of the pre-cell growth of companies, ie the project’s pre-cell growth, is also firmly pointed out in the market after Kovid. The growth of top developers is also found in their market capitalization. The market capitalization of Macrotech developers increased to Rs 1.32 lakh crore in April 2025. The market capitalization of DLF increased to Rs 1.7 lakh crore in April 2025. The market capitalization of Godrej Properties was Rs 18,647 crore in March 2019, which increased to Rs 64,622 crore in April 2025. Lenders closely look closely on track records related to project execution of real estate developers. Large companies in the region depend on banks and non-banking financial companies (NBFCs), while the lack of capital has pushed small companies to alternative investment funds (AIF). AIF gets returns on investment made in a particular asset.
Chirag Mehta, founder of real estate private equity firm Arber Investments, said that developers of the middle market are facing a lot of difficulty as now the top builders are now controlling most of the liquidity.
First Published – April 30, 2025 | 10:55 PM IST
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