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India

Mumbai / Bengaluru · INR

Corpus dated July 2026

For landowners

India invented the modern land JV: the JDA. You keep title until handover, the developer builds at their cost, and you take 30–50% of the finished homes (or 20–35% of revenue). RERA now protects buyers — and by extension, your project's credibility.

For developers

FSI + TDR arithmetic defines the pro forma; premium FSI purchase is a real cost line. RERA escrow (70%) and GST-on-JDA treatment shape cash flows. Title diligence is the gating workstream.

Build cost (USD/m²)

$400–750

Sale prices (USD/m²) · Mid-market

$2,000–4,000

Sale prices (USD/m²) · Prime

$7,000–15,000

Typical owner share

30–50%

of built area (area-share JDA)

Title system: Presumptive title via registered deeds — no state guarantee; diligence via 7/12 extracts, Property Card, encumbrance certificates; RERA project registry overlay.
Foreign ownership: Foreign individuals cannot buy land (FEMA); NRIs/OCIs free (except agricultural); developers via 100% FDI automatic route in construction-development (3-yr lock-in).
Authorities: State sub-registrars; planning: MCGM/MMRDA under DCPR 2034 (Mumbai), BBMP/BDA (Bengaluru).
Zoning metric: FSI/FAR + tradable TDR: Mumbai island base 1.33 → ~3.0 with premium FSI+TDR (TOD to ~5); Bengaluru FAR ~1.75–3.25 (+premium FAR scheme 2025).
Height control: No fixed cap — AAI aviation NOC + fire NOC (>70m special); Mumbai towers 250m+ routine.
Building code: National Building Code 2016 + IS codes (IS 456, IS 1893 seismic); state DCPR/bye-laws; environmental clearance >20,000 m² built-up.
Approvals & timeline: IOD/CC via AutoDCR + multiple NOCs 6–18 mo; environmental clearance parallel; mandatory RERA registration pre-sales. (~12–24 months)
Transfer taxes & fees: Stamp ~5–7% + 1% registration; GST 5% under-construction (1% affordable); GST on JDA development rights contested — structure carefully.
Foreign capital: FDI/AIF/REIT routes deep; land banking with foreign capital restricted; GIFT City feeder vehicles.

Common JV structures

Joint Development Agreement — Area Share

30–50%

Owner grants development rights (JDA + limited power of attorney) but keeps title until handover. Developer builds entirely at own cost; the finished built-up area is split by an agreed ratio and each party sells or keeps its own units.

Joint Development Agreement — Revenue Share

20–40%

Same grant of development rights, but the owner takes a percentage of gross sales revenue instead of units. Developer controls pricing and sales; escrow and audit rights are standard protections.

Land-as-Equity SPV

20–50%

Owner conveys land into a new project company at an agreed value; that value becomes the owner's equity stake. Developer and investors contribute cash and expertise; profits distribute through a waterfall (capital back → preferred return → promote).

Development Management + Profit Share

10–30%

Owner keeps ownership and funds the project; the developer acts as development manager for a base fee (2–5% of cost) plus a promote (10–30% of profit above a hurdle). Effectively a JV without a land transfer.

Risk flags

⚠ Title/litigation risk (thin title insurance)
⚠ Approval discretion + premium-cost changes
⚠ GST-on-JDA disputes

RERA carpet-area selling: efficiency modeled at ~0.68 GFA→carpet.