Consolidation in Real Estate may Speed up amid Covid-19

The Covid-19 pandemic is expected to speed up consolidation in the real estate sector. Cash-starved developers have started turning to financially-sound builders to take over stuck projects, with stressed developers also increasingly forming joint ventures, monetising land and extending development management contracts across major cities.

In some recent transactions, Shriram Properties has entered into a development management agreement with SLV Infra for a plotted development project in Bengaluru. Godrej Properties has entered the Faridabad market with a residential plotted development. The land parcel, spread across 43.61 acres, was acquired from BPTP.