India tops China in billion-dollar realty companies

India’s thriving property market achieved a major milestone, surpassing China in the tally of homegrown realty companies valued at $1 billion. The South Asian nation is home to 36 such realty companies, climbing from just 7 six years ago, showed latest data compiled by Hurun Research Institute. The list includes market leader DLF, besides Macrotech Developers and Adani Realty.Surge in the valuation of Indian realty companies underscores India’s burgeoning real estate market and its growing attractiveness to investors, both domestically and internationally. The data, part of the 2024 GROHE-Hurun India Real Estate 100 report, revealed a robust growth trajectory in the sector, propelled by various factors including urbanisation, infrastructure development, and evolving consumer preferences. Notably, China’s real estate market is facing significant headwinds due to government clampdowns and demand slowdown. In Mainland China, the number of listed realty firms valued at over $1 billion declined to 30 from 100, while in the Hurun China 500, which has a threshold of $3 billion, the number dropped from 50 to just 10.

Mumbai led the top 100 list with 33 companies, followed by Bengaluru, New Delhi and Gurugram with 15, 14 and 10 companies, respectively. The threshold to qualify for the list was ₹1,200 crore, a 30% on-year increase.

With a value of ₹2 lakh crore, DLF emerged as India’s most valuable property developer. Macrotech Developers at ₹1.4 lakh crore, and Indian Hotels Company (IHCL) at ₹79,150 crore are at the second and third spots, respectively in the 2024 GROHE-Hurun India Real Estate 100. IHCL, which runs the Taj group of hotels, emerged as the most valuable hospitality company in the list. For the first time since inception of the index, Adani Realty entered the list of top 10, growing 62% on-year, achieving a cumulative valuation of ₹56,500 crore, and is at 7th rank. Adani Realty is also the most valuable unlisted real estate company on the list.

With a valuation of ₹79,150 crore, IHCL occupied the third spot, and Taj GVK, valued at ₹2,050 crore, occupied the 74th spot.As much as 86% of companies in the list saw their valuations surge by ₹6.2 lakh crore cumulatively. Sobha emerged as the top employer in the list with a workforce of 26,275 people.

Cumulative value of India’s most valuable realty firms swelled by 70%, a record since inception of the list. This is in line with the BSE Realty Index, which soared 110% during the last one year. Interestingly, 18 of the top 100 companies are led by professional CEOs who do not hail from the founding family. India’s most valuable real estate companies in the list have a combined value of $171 billion or ₹14.2 lakh crore, more than the combined GDP of Oman and Sri Lanka, the study showed.

Led by Pavitra Shankar, Bengaluru-based Brigade Enterprises, valued at ₹29,690 crore, and Hyderabad-based Taj GVK, led by G Indira Krishna Reddy, valued at ₹2,050 crore, are the only two women-led companies in the top 100.

Noida-based Max Estates and Gurugram-based Smartworks-both founded eight years ago-are the youngest companies in the list, while Peninsula Land, founded in 1871 and valued at ₹1,830 crore, is the oldest.

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