How is the IBC helping Mumbai real estate?

The IBC aids Mumbai real estate by facilitating the acquisition of land parcels and properties through insolvency resolution processes, offering clean titles and clear ownership.

Why are developers attracted to IBC property deals?

Developers prefer IBC deals for guaranteed ownership clarity, pre-approved regulatory compliances, and avoidance of legacy liabilities, often at competitive prices.

Which companies are using the IBC for land acquisition?

Large conglomerates like Adani Enterprises and developers such as Oberoi Realty are using the IBC to acquire land banks and distressed real estate assets.

Home / Business and Economy / IBC Fuels Real Estate Grab in Indian Cities

IBC Fuels Real Estate Grab in Indian Cities

12 Jan

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Summary

Insolvency Code aids urban property acquisition.
Over 1,900 real estate firms in insolvency.
Clean title and clarity attract developers.

IBC Fuels Real Estate Grab in Indian Cities

The Indian Insolvency and Bankruptcy Code (IBC) is increasingly vital for accessing urban real estate, especially in supply-constrained metropolitan markets. Strategic buyers are utilizing the insolvency process to gain ownership of assets with greater certainty regarding titles, approvals, and timelines. This framework streamlines land consolidation and facilitates ownership transitions, reducing execution risks for developers.

As of September, 8,659 companies had entered insolvency, including approximately 1,905 real estate firms. A significant number of these have seen resolution plans approved, underscoring the IBC's growing influence in the property sector. Buyers are attracted to the clean ownership and absence of past or hidden liabilities offered by insolvency-led transactions, often at competitive valuations.

Major conglomerates have actively used the IBC to expand their land banks. Notable acquisitions include Adani Enterprises securing land in Uttar Pradesh and two assets in Mumbai. Mumbai alone has witnessed several such deals, such as Shree Naman Developers acquiring Neptune Developers and Oberoi Realty-led consortium taking over Hotel Horizon, highlighting the ongoing trend of leveraging insolvency for prime urban property.