Realty faces execution pressure as developers expand launch pipelines

Top four listed real estate firms plan ₹1.13 trn worth of launches in near-medium term

Developers are entering one of the busiest construction cycles, with the top four firms planning launches worth ₹1.13 trillion over the near to medium term, even as execution faces pressure from approval delays, labour shortages, rising costs, and contractor capacity limits across the industry. 

“Execution challenges are visible across the real estate industry. Even as demand and presales remain strong, deliveries have not kept pace. Developers are making large launch announcements, but approvals, labour availability, contractor capacity, and construction timelines are yet to fully align with this scale. The widening gap between what is launched and what is delivered clearly signals execution pressure, even in a bullish market,” said Sanjay Daga, managing director and chief executive officer (MD&CEO), Anex Advisory, a Mumbai-based real estate consulting firm that advises mid- to high-scale developers. 

Top developers have lined up launches running into thousands of crores. India's largest listed real estate company DLF has plans for products worth ₹60,215 crore over the medium term and has launched ₹13,685 crore in the first half of 2025-26 (H1FY26), JM Financial noted. Mumbai-based marquee developer Lodha launched ₹13,200 crore in H1FY26 and plans ₹14,000 crore more in the next two quarters. Bengaluru-based Prestige Estates, which has recently entered Delhi-NCR, launched ₹17,500 crore in H1FY26 with a ₹27,200 crore pipeline, according to Yes Securities. Godrej group's realty arm Godrej Properties is aiming for ₹40,000 crore of launches in FY26, according to Elara Capital. 

While large developers continue to report solid sales and land buys, converting ambitious pipelines into timely deliveries is emerging as a sector-wide concern. Anuj Puri, chairperson of the Anarock group, said smaller developers struggle to buy land at high rates, raising their financial burden and limiting pricing flexibility. Escalating input costs have further squeezed margins and made execution more expensive. He expects developers to stay cautious about project categories to avoid demand-supply mismatches despite aggressive land purchases in 2025. 

The top seven cities saw 96,690 units launched in the third quarter of calendar year 2025 (Q3CY25), up 3 per cent year-on-year (Y-o-Y), though down 2 per cent sequentially, according to Anarock.

 

“Post-Covid, developers are not facing a demand problem, instead they are facing an execution capacity problem. We are building in a far more complex environment — with higher compliance, sharper cost pressures, geopolitical turmoil, high competitiveness, and tighter timelines,” said Dr Niranjan Hiranandani, chairman of National Real Estate Development Council (Naredco), a self-regulatory body under the purview of the Ministry of Housing and Urban Affairs.

 

He further noted that construction costs have risen almost 40 per cent in five years, land is costlier, and skilled labour availability is tight. “At the same time, regulatory and approval processes remain multi-layered, which inevitably affects project viability and execution capabilities,” he added. Hiranandani emphasised that announcements are not deliveries. “The developers who will truly benefit from this cycle are the ones with disciplined planning, strong governance, and the ability to execute in a more demanding environment,” he said.

 

Developers, however, downplayed the concerns, with some of the mid-scale players noting that the pressures were cyclical and did not leave a deep impact on execution. Mumbai-based Paradigm Realty's chairman and managing director (CMD) Parth Mehta noted that developers periodically face execution pressures. “Over the past five years or so, we have also seen many project timelines being affected by tighter funding conditions, and a rise in construction costs impacting the financial side. These are factors that often lead to a revenue-recognition mismatch across project cycles, even while well-regarded developers continue to ensure that construction is on track,” Mehta added.

 

Sujay Kalele, founder and CEO of Pune-based Tru Realty, said the unprecedented pace of redevelopment has tightened skilled technical manpower and specialist consultants in Mumbai. “This is a natural outcome of the city’s construction intensity and not a reflection of developer inefficiency,” he added.

 

But execution capability is now a differentiator for large realty companies. Pirojsha Godrej, executive chairperson, Godrej Properties, said during the Q2FY26 earnings call that “there are challenges in some ways on the execution side”, though deliveries touched 18 million square feet (sq ft) last year, and are expected to exceed guidance this year. The firm has introduced multiple initiatives and begun tying up with grade-A contractors such as Leighton Asia and Ahluwalia Contracts to strengthen execution.

 

Indrajit Siddhanta, cofounder and principal partner at Delhi-based real estate consultancy firm Square Yards, said: “The challenge is balancing aggressive launch schedules with realistic development timelines. Mega pipelines require robust project management, deeper contractor capability, disciplined cash-flow planning, and phased construction strategies.”

 

SUM AND SUBSTANCE

 

– Developers are facing execution pressure amid delays in approvals, labour shortages, cost escalations, and capacity limits among contractors

 

– Construction costs have surged nearly 40 per cent in five years, tightening viability and execution capacity, says Dr Niranjan Hiranandani

 

– Top seven cities saw 96,690 units launched in Q3CY25, a 3 per cent Y-o-Y rise, according to Anarock

 

– Top developers — including DLF, Lodha, Prestige, and Godrej — have planned mega launch pipelines worth ₹1.13 trillion over the near to medium term