Institutional investors are increasingly turning to Development Management Agreements (DMAs) to maximise returns while reducing risks. This model brings together the scale and expertise of national developers, the market access of regional partners, and — increasingly — the execution capabilities of specialist development managers who empower small and mid-sized developers. Together, they form a structure perfectly suited for today’s competitive real estate landscape.
With $1.3 billion in institutional investment in Q1 2025 — a 31% year-on-year increase — the DMA model is proving its worth as the go-to strategy for investors seeking both stability and expansion.
A Model Built for Collaboration and Compliance
In its traditional form, a DMA is a collaborative arrangement where leading national developers team up with local builders or landowners to implement projects. Regulated by the Real Estate Regulatory Authority (RERA), these contracts identify both parties as joint co-promoters sharing revenues and liabilities. This streamlines delivery, ensures compliance with local planning, and leverages the brand strength of established developers.
Today, specialist DM firms are adding a new dimension. By providing structured processes, market intelligence, and compliance expertise, they help small and mid-sized developers deliver institutional-grade projects without building large in-house teams. This widens investor access to quality projects beyond the national developer segment.
Historically, real estate projects often suffered from delays, cost overruns, and compromised quality due to fragmented planning. DMAs address this by combining the program management expertise of national developers or DM specialists with the local insights and networks of regional partners — delivering projects on time, on budget, and to higher quality standards.
Why Investors are Paying Attention
For institutional investors, the development management model is an epitome of efficiency in a business sector otherwise dominated by uncertainty. Here are a few reasons why it is winning them over:
National developers avoid heavy upfront land or infrastructure costs by partnering with regional players who already hold strategic land parcels or have strong local networks.
For smaller developers, partnering with specialist DM firms allows them to scale up into larger, more complex projects without overstretching resources — an attractive proposition for investors seeking diversified portfolios.
For institutional investors, engaging a DM specialist provides a turnkey solution — allowing them to invest in development projects without committing resources to an internal execution team.
- Shared Risk, Higher Confidence
Regional partners handle local regulations and community engagement, while national developers or DM consultants ensure construction quality, regulatory compliance, and brand discipline. This balance reduces investor exposure to localised risks and builds trust in project outcomes.
- Predictable Timelines and Quality
Institutional investors value certainty. DMAs integrate independent monitoring systems to keep budgets and schedules on track, with experienced DM players acting as custodians of quality and consistency, and timely delivery — increasing trust and marketability.
Regional developers benefit from brand alignment — either through partnerships with national developers or the credibility brought by specialist DM expertise. This boosts buyer confidence, accelerates sales, and enhances ROI potential. For institutional investors, it means faster absorption and more predictable returns.
RERA supervision safeguards the interests of consumers by making DMAs ensure transparency in project implementation and financial transactions. This regulatory environment keeps both parties honest, minimising the risk of mismanagement or litigation. Institutional investors find that this extra layer of protection makes DMAs a better bet than conventional development models.
Also Read: Why Real Estate Beats Gold as the Smarter Investment in 2025
A Booming Market for DMAs
The DMA approach is rapidly gaining ground in metros like Mumbai, Bangalore, and Delhi, driven by urban demand for quality commercial and residential spaces. In land-scarce, high-density areas, partnering with local stakeholders — and, where needed, drawing on specialist DM expertise — allows developers to secure prime sites and deliver high-quality projects without prohibitive capital costs.
Looking Ahead
The development management model is reshaping how real estate projects are conceived and delivered. Its focus on partnership, efficiency, and predictability aligns perfectly with investor priorities. Whether through large national players, capable local developers, or specialist DM firms empowering mid-market players, the formula is clear: shared expertise, disciplined execution, and reduced risk.
As adoption spreads across both metros and tier-II cities, DMAs are poised to set new benchmarks for project quality, speed, and returns.
For institutional investors, the message is clear: DMAs aren’t just another option — they’re the smart, scalable, and secure path to high-performance real estate portfolios.
About the Author
Navin Dhanuka is Director of ArisUnitern RE Solutions, a comprehensive Real Estate Development Management and Strategic Advisory firm. With over 20 years of experience in RE investments across India, he has managed investments exceeding $2 billion across 100+ transactions spanning debt, mezzanine, and equity. Previously, he served as Senior Principal at Piramal Financial Services, managing P&L for Bangalore and Hyderabad regions, and as Senior Vice President at Walton Street Capital. A recognized thought leader, Navin received CEO of the Year at ET Accent National Awards 2022 and CXO of the Year 2023 by Realty+. He actively angel invests in startups and serves on Jiraaf's board.
