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How India's Real Estate Developers Work

Real Estate Developers: Recap

How the developer business works, from land to handover, and a recap of the module.

Developers link land, finance and construction.

Module recap

  • Developers buy land, get approvals, pre-sell and build.
  • Land is the biggest cost and risk.
  • Approvals cause delays.
  • Pre-sales fund construction; RERA protects buyers’ money.
  • NBFCs and funds provide finance.
  • JDAs share land and projects.
  • Pricing tactics keep listed prices sticky.
  • Luxury has outpaced affordable.
  • Offices earn rent and feed REITs.
  • Townships show promise and pitfalls.
  • The market has consolidated.
The finished tower

After four years, buyers collect keys to their flats, the end of a long chain of land, approvals and finance.

Thinking real estate is simple

It involves land, finance, regulation and risk.

Key takeaways
  • Developers take big, long risks.
  • Regulation reshaped the industry.
  • Finance availability drives projects.
  • Big firms now dominate.
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