Builders go for outright land buys amid better residential demand

Of 68 land deals closed in nine months of 2022, nearly 40 deals comprising over 590 acres are proposed for residential development

Property developers are favouring outright purchase of land parcels for residential developments, according to real estate consultants and developers.

While before the pandemic developers mostly preferred joint ventures (JVs) to de-risk and conserve cash, now they opted to buy land as residential sales improved and consolidation had gained ground in real estate, experts said.

According to Mayank Saksena, chief executive, land services, at Anarock Property Consultants, the ratio of outright purchases of land to JVs had changed to 50:50 from 80:20 before the pandemic. Prior to Covid-19, 80 per cent of land bought was through JVs.

“Today, good developers don’t