70% of the Real Estate Projects in Bengaluru are in Joint Venture

70% of the Real Estate Projects in Bengaluru are in Joint Venture


5 month(s) ago

Soaring Land Prices Drive Rise of Joint Development Agreements in Bengaluru’s Real Estate Market. Bengaluru’s real estate landscape is experiencing a significant shift towards Joint Development Agreements (JDAs) due to rising land prices. 70% of the Real Estate Projects in Bengaluru are in Joint Venture

Here’s a breakdown of the key factors:

  • Market Trend: A report by Meraqi reveals that 70% of Bengaluru’s real estate assets (residential and commercial) are now developed through JDAs.
  • Price Surge: Land prices in Bengaluru, along with other major Indian cities, have witnessed a 20-30% increase in the past three years. This surge has driven the shift towards JDAs.
  • Outright Sales vs. JDAs: Before 2021, outright land sales were more common. However, JDAs are now preferred due to their cost-effectiveness for both developers and landowners.
  • Benefits of JDAs:
    • Landowners: Monetize land while retaining ownership.
    • Developers: Access prime locations without massive upfront costs.
  • Market Sentiment: Positive market sentiment in Bengaluru is leading many landowners to opt for JDAs for residential and commercial projects.
  • Increased Returns: JDAs are expected to yield 2-2.5 times higher returns than outright sales.
  • Past Challenges (2015-2020): Regulatory changes like RERA and GST implementation introduced initial uncertainties regarding tax, legal, and regulatory aspects of JDAs.

Reasons Behind Rising Land Prices:

  • Growth Drivers: Bengaluru’s thriving IT sector with numerous startups, coupled with ongoing infrastructure development, is fueling real estate growth.

Overall Significance:

JDAs are becoming a crucial tool for mitigating the impact of rising land prices in Bengaluru. They offer a win-win situation for both landowners and developers, facilitating profitable development while ensuring land ownership rights remain intact.


Disclaimer: The information herein is based upon information obtained in good faith from sources believed to be reliable. All such information and opinions can be subject to change. Furthermore, The image featured in this article is for representation purposes only. It does not in any way represent the project. If you wish to remove or edit the article or want to publish your news or article please email news@jvdeals.in

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