The booming trend of joint development ventures benefits not just landowners, but also developers and homebuyers.

Joint development ventures in real estate have been around for generations. But suddenly it’s in vogue and seems to rake in the moolah for all parties involved in this ingenious development model. If you have noticed the sudden spurt in new and plush apartments or office complexes replacing old buildings, you would know there is a successful joint deal at work. With the speed at which it’s picking up across Indian cities, there is bound to be a set of satisfied sellers, developers, and new homebuyers.

Among the top cities, Chennai is seeing heightened activity in the redevelopment of property. A large chunk of this kind of deal is based on the JD model. Anantharam Varayur, co-founder of a real estate firm, says, “In Chennai, the landowners, who lacked the expertise to develop a massive residential and commercial property formed JVs with real estate companies to undertake property development.”

  • In a Joint Development Agreement, the promoter or builder, and the owner of the land where the property is being developed, enter into a Joint Development Agreement (JDA);
  • The landowner transfers the economic interest or development rights to the developer;

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