FY23 was good for real estate billionaires on the Fortune India Rich List with wealth of each promoter rising at least 10%. Wealth of Manoj Menda, co-founder and corporate chairman, RMZ Corp, and his brother Raj Menda, co-founder and corporate chairman, grew 14% to ₹36,992 crore. The privately-owned company leased over five million sq. ft., added 38 tenants and reported 100% occupancy across core assets at rentals 15% above market rates. "We're also taking our footprint nationwide. We began by breaking ground in three cities and have now established presence in six," Manoj Menda tells Fortune India.

Overall, commercial real estate segment is facing a lull, partly because many companies continue to work in hybrid mode, but residential segment is booming. Housing sales climbed 34% to 3,12,666 in 2022 across the top eight cities and demand has stayed strong in first half of 2023, says real estate consulting firm Knight Frank. "The industry continues to consolidate with residential developments steadily shifting into the hands of stronger developers who have been able to weather the economic storm created by the pandemic," it says in a report.

Prestige Group CMD Irfan Razack, who saw a 21% increase in wealth to ₹14,813.66 crore, says technology and government initiatives contributed to the sector's resilience during Covid-19 and after. "Developers shifted focus to virtual tours and digital sales. Government initiatives such as lowering of interest rates, reduction in stamp duties and incentives for affordable housing bolstered demand," says Razack.

Minting Billionaires

Anuj Puri, chairman of property consultant firm Anarock, says real estate is a business of resources, timing, market knowledge, patience and expertise. "Grade A developers have been garnering market share after RERA was implemented and Covid-19 reset the real estate equation. Their success will beget more success in the future," he says.

"Favourable economic trends, including urbanisation, population growth and rising incomes, have increased housing demand. Policies promoting affordable housing have also made property investment attractive. Additionally, easier access to housing loans has facilitated property ownership," says Razack. He says changing lifestyles have also spurred demand for smart homes and sustainable living spaces.

"Over the past decade, the sector has benefited from factors such as robust economic growth and lowest ever interest rates and created substantial wealth through asset development. With urbanisation on an ascent, demand for both residential and commercial spaces increased," says Menda. According to World Bank, India's urban population increased from 28% in 2002 to 36% in 2022. A report by real estate consulting firm Colliers says foreign capital flows in real estate tripled to $24 billion during 2017-2021 compared to the preceding five-year period.

Many top developers have benefitted from rapid GDP growth since economic reforms in 1991, growth of discretionary incomes and urbanisation. Take K Raheja Corp., the company behind Mindspace Business Parks REIT (market valuation of ₹18,007 crore), Shoppers Stop and Chalet Hotels (market valuation of ₹10,714.60 crore). It laid the foundation of the country's first department store, Shoppers Stop, in 1991. The chain had grown to 98 stores and 10 standalone beauty stores at the end of FY23. Chairman Chandru Raheja saw 33.6% rise in net worth to ₹24,560 crore. Oberoi Realty has developed over 43 projects in Mumbai totalling about 9.34 million sq. feet over the last four decades. The company, known for hi-end residential properties, has 32.80 million sq. feet under development. Its revenue jumped 56% to ₹4,293.2 crore in FY23.

India's Real Estate Moguls

Real Estate Moguls Reap Consolidation Windfall