With a wealth of Rs 31,960 crore, Mumbai’s Mangal Prabhat Lodha and the family of Macrotech Developers retain the top spot as the country’s richest real estate developer. New Delhi’s Rajiv Singh of DLF secures the second spot with a wealth of Rs 25,080 crore, according to the GROHE Hurun India Real Estate Rich List 2019 released on December 9.
Total wealth of top 100 Indians in the real estate sector stood at Rs 277,080 crore – up 17 percent against 2018. Three cities – Mumbai, New Delhi, and Bengaluru are home to 75 percent of the GROHE Hurun India Real Estate Rich List 2019.
In 2019, six companies on the list registered a sale of more than Rs 2,000 crore. As many as 20 companies registered a sale of more than Rs 1,000 crore this year. Almost 59 percent of the names featured on the list are first-generation entrepreneurs.
A lawmaker representing the ruling party BJP, Mangal Prabhat Lodha is the richest person on the GROHE Hurun India Real Estate Rich List 2019 for the third consecutive year.
The Lodha Group is India’s largest residential real estate developer by sale (Rs 11,907 crore). Backed by strong sales of the flagship company Macrotech Developers, Lodha family’s wealth increased by 18 percent during 2019 and accounted for the cumulative wealth of 12 percent of the remaining 99 Indians featured on the list.
As on March 31, 2019, Macrotech Developers has 40 ongoing projects which account for a combined develop-able area of 30.4 million square feet, of which 28.6 million square feet is located in the Mumbai Metropolitan Region, the list said.
Rajiv Singh, Vice Chairman of DLF, is ranked second on the GROHE Hurun India Real Estate Rich List 2019 with a net worth of Rs 25,080 crore. Rajiv Singh’s wealth increased by 42 percent, mainly as a result of an Rs 11,250 crore capital infusion process initiated in 2017.
As part of the capital infusion process, DLF issued 268.1 million new equity shares to raise promoters’ holdings to 74.95 percent from 71.91 percent. In December 2017, DLF sold its entire 40 percent in its rental arm DLF Cyber City Developers (DCCDL) to raise Rs 11,900 crore.
With a fortune of Rs 24,750 crore, Jitendra Virwani is considered South India’s largest office space landlord. Embassy Office Parks REIT (Embassy REIT) was listed at the Indian stock exchanges (NSE and BSE) on April 1, 2019 as India’s first publicly listed REIT. Embassy REIT owns and operates a 33-million-square-foot portfolio across seven Grade A office parks and four city-centre office buildings in Bengaluru, Mumbai, Pune and the National Capital Region (NCR-Noida).
Niranjan Hiranandani, ranked 4th on the GROHE Hurun India Real Estate Rich List 2019, controls the privately owned Nidar Group. Through the family-owned Group, Hiranandani has invested in residential townships and commercial real estate in Maharashtra and beyond. Hiranandani Communities has so far developed 25.58 million square feet out of its share of 151 million square feet of develop-able real estate space. The net worth of Hiranandani Communities is Rs 17,030 crore.
Chandru Lachmandas Raheja is the Chairman of K Raheja Corp, ranked 5th with a net worth of Rs 15,480 crore. The family-run C L Raheja group has diversified into hotels, commercial properties, shopping malls, IT parks, and residential properties. India’s second-largest developer of commercial parks and has so far developed commercial space in the western and southern parts of the country under the brands Mindspace and Commerzone.
Harvard-alumnus Vikas Oberoi runs Oberoi Realty and is worth Rs 13,910 crore. His company has developed projects across residential, commercial, retail, social and hospitality segments for multi-faceted customers. Oberoi Realty has completed 42 projects across Mumbai with 27.43 million square feet under construction as on March 2019.
With a net worth of Rs 9,960 crore, Raja Bagmane, CMD of Bagmane Group, rises to the 7th spot on the GROHE Hurun India Real Estate Rich List 2019. Bagmane Developers’ primary focus has been the development and leasing of commercial office space. They currently have an exclusive office space portfolio, with a leasable area of 12.3 million square feet. Bagmane Tech Park, with 3 million square feet of leasable area, is located at C V Raman Nagar in Bengaluru.
Surendra Hiranandani is ranked 8th on the GROHE Hurun India Real Estate Rich List 2019. Although he began the Hiranandani Group with elder brother Niranjan, an amicable family business separation has since seen Surendra Hiranandani set up House of Hiranandani with residential projects in Chennai, Bengaluru, and Hyderabad.
House of Hiranandani has so far delivered 22,215 homes, spread across 37.9 million square feet. The net worth of the firm is Rs 9,720 crore, according to the Hurun List.
Subhash Runwal is the founder and chairman of the Runwal Group, ranked 9th with a net worth of Rs 7,100 crore. The company has four operational malls with over 2 million square feet of gross leasable area. In May 2019, Warburg Pincus and the Runwal Group formed a joint venture to create a corpus of $1 billion to invest in the development of shopping malls.
Ajay Piramal, with a net worth of Rs 6,560 crore, ranks 10th on the GROHE Hurun India Real Estate List 2019. Piramal Realty, the real estate development arm of the Piramal Group was founded by Anand Piramal in 2012. Piramal Realty has 15 million square feet of land under development across commercial and residential segments.
Average wealth of Indian realtors has increased by 16 percent
Despite all the news of slowdown in the sector, the average wealth of Indian realtors has increased by 16 percent or Rs 2,743 crore. The combined revenues of the companies in the List grew by 17 percent. These data seemed to indicate that established players are registering a strong performance in the adverse market condition. One could expect consolidation of the sector in the short term.
Office segment continues to be the favoured investment asset class
Though private equity investments into residential space registered a decline of 25 percent, investment into commercial and retail segments registered a growth of almost 20 percent, the GROHE Hurun India Real Estate Rich List 2019 said.
The office segment continues to be the favoured investment asset class. It has accounted for a 65.6 percent share in 2019. At the city-level, Mumbai accounts for 24 percent of private equity inflow, followed by Hyderabad with 9.3 percent and Pune with 9 percent. Among major transactions, Blackstone Group signed a term sheet to acquire the remaining 50 percent stake in Indiabulls’ commercial properties for over Rs 4,420 crore.
Delhi-based real estate developer DLF has been recognised as the leader in the commercial segment of the real estate market in India, followed by Embassy which has an exclusive presence in this sector.
Eight women realtors find a place on the list
As many as eight women find a place on the GROHE Hurun India Real Estate Rich List 2019. With a fortune of Rs 3,560 crore, Smita V Crishna of Godrej Properties is the richest woman on the GROHE Hurun India Real Estate Rich List 2019.
Other women realtors who made it to the list include: Renuka Talwar of DLF (commercial) with a net worth of Rs 2,590 crore; Pia Singh of DLF with wealth worth Rs 2,370 crore; Shilpa Gupta of Emaar MGF Land with wealth worth Rs 730 crore; Sangeeta Arora of Supertech, Noida with wealth of Rs 410 crore; M Vasantha Kumari of Gopalan Enterprises (Benguluru) worth Rs 310 crore and Kanchan Bhalla of Vatika (commercial) worth Rs 300 crore.
Wealth increased by 27 percent
The super-rich real estate tycoons in India have grown wealthier in the past year. Their wealth increased to 27 percent compared to 2017, according to the latest GROHE Hurun India Real Estate Rich List 2019.
As many as 36 new faces now feature in the list and almost 60 percent of the list are first-generation entrepreneurs, further demonstrating the fact that the sector is still very “young” in India, the report said.
Average age on the List is 59 years
The average age of individuals on the list is 59 years. Six individuals under the age of 40 and three above the age of 80 made it to the GROHE Hurun India Real Estate Rich List 2019.
With a net worth of Rs 740 crore, the youngest on the list are Jupally Ramu Rao and Jupally Shyam Rao (both 33) of My Home Constructions. With a net worth of Rs 3,670 crore, the oldest on the list is Prithvi Raj Singh Oberoi (90) of East India Hotels.
Where do the richest realtors reside?
Among the states and union territories, Maharashtra tops the List with 43 real estate entrepreneurs, followed by Delhi with 19 individuals and Karnataka with 19 individuals. This year, Maharashtra added two more of its residents to the GROHE Hurun India Real Estate Rich List. Among cities, Mumbai leads the list with 37 individuals, followed by New Delhi and Bengaluru tied at 19 residents each.
“The third edition of the real estate rich list highlights two major transformations defining the sector. One, more weightage is being given by the buyers and lenders to players who value accountability, transparency and institutional approach. The indication: 60 percent of individuals featured in this year’s list are from stable or positively rated companies. Two, the names on the rich list are not on it, merely because they created wealth for themselves – but for the stakeholders they cater to through their companies,” said Anas Rahman Junaid, MD and chief researcher, Hurun Report India.
The GROHE Hurun India Real Estate Rich List 2019 is a snapshot of wealth as of September 30, 2019. This is a supplementary list to the Hurun India Rich List 2019.