As the real estate market continues to grow, Joint Development (JD) projects have emerged as a popular option for landowners who are looking to maximize the value of their land. A Joint Development Project is a type of real estate development where the land owner and the developer collaborate and share the benefits of the project. In JD projects, the developer and the land owner jointly construct the building on the land, and the resulting property is then shared between them based on their agreed-upon terms.
At our company, we have completed around 20-25 Joint Development Projects to date, ensuring our clients benefit from our experience. In this blog, we will discuss why Joint Development Projects are a better option for land owners.
In a Joint Development project, the land owner can get 1.25x to 1.5x more value for their land than the market price. This is because the developer is willing to pay a premium for the land, as they can share the profits from the completed project. This means that the land owner can make more money from the sale of their land by choosing a Joint Development Project over a regular sale.
After the introduction of the Real Estate (Regulation and Development) Act, 2016 (RERA), Joint Development norms for the developer and land owner differ. The land owner doesn't have to comply with the compliances of the developer. This makes the process much easier for the land owner, as they don't have to worry about the legal compliances of the project.
In Joint Development, the effect of an increase in Jantri rates won't be much because the developer will get a cushion against price increments. The Jantri rates are the base rates decided by the government for land transactions. If the Jantri rates increase, the developer can pass on the increased cost to the buyers. This means that the landowner doesn't have to bear the burden of the increased Jantri rates.
At our company, we have completed several Joint Development Projects, ensuring our clients benefit from our experience and expertise. We have worked with several land owners and developers, and have the knowledge and experience to ensure a smooth and successful Joint Development Project.
Joint Development Projects offer several benefits to land owners, including more value for their land, easy compliance, and protection against price increment. At Shivalik, we have completed several Joint Development Projects, ensuring our clients benefit from our experience and expertise.
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