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Can Developer-as-a-Service improve real estate’s project economics?

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By ​​Navin Dhanuka, Director, ArisUnitern RE Solutions

Real estate development is often treated as a sequence of activities: secure the land, arrange funding, obtain approvals, build, sell and hand over. In practice, these activities are tightly connected. A delay in collections can affect procurement; a procurement shortfall can disrupt construction; and construction delays can push back sales realisation. The cost of a problem in one function is often borne by several others.

India’s residential market shows why getting these decisions right matters. According to ANAROCK’s Q3 2026 data, housing sales across the top seven cities rose 3% year-on-year to about 1,00,220 units, while new launches grew 18% to about 1,14,320 units. Available inventory climbed 12% to over 6.3 lakh homes. Demand remains resilient, but rising inventory points to the growing importance of aligning launch decisions, construction commitments and cash flow assumptions with market absorption.

The case for integration
The traditional development model distributes responsibility across multiple consultants, contractors, vendors and internal teams. Specialisation is necessary, but fragmentation makes accountability difficult. Each participant may meet their individual obligations without anyone having a complete view of how decisions affect the project’s overall economics.

Developer as a Service (DaaS) addresses this gap by bringing development planning and execution into one coordinated operating model. It connects the three things every project runs on: Money, Material and Management. Financial planning, procurement, contractor coordination, construction, sales and collections work to a common execution plan. Unlike models that address individual functions in isolation, DaaS connects these activities to shared project outcomes, with clear responsibilities and agreed performance measures. The distinction is important: DaaS is not simply outsourcing project management. Its value lies in making decisions across functions work together.

Research on integrated project delivery offers useful evidence for this approach. A study published in the Journal of Construction Engineering and Management examined 204 completed construction projects. It found that earlier contractor participation, stronger team integration and transparent cost arrangements were associated with better control of schedule growth and lower average cost growth. The study also linked cohesive teams with better owner assessments of handover and building quality.

The practical implication for real estate is straightforward. Procurement decisions made early enough to influence design and construction planning can prevent avoidable rework. Shared cost information helps teams identify trade-offs before commitments are made. Clear accountability reduces the time lost resolving disputes between parties.

Integration is not automatic, however. The evidence supports specific practices, not labels. Implementation quality, contractual incentives and decision-making authority determine whether integration delivers.

Where DaaS makes a difference
Consider collections, procurement and construction on a live project. In a fragmented structure, a dip in collections is often noticed only after it has affected procurement and the site. Sales is asked to push conversions, finance looks for funds, and construction continues against the original schedule. An integrated team reads the same signal early and responds together: prioritising expenditure, aligning procurement with available cash and adjusting milestones before slippage compounds. This can help reduce avoidable cash-flow pressure, idle resources and costly schedule delays.

The right response also changes with the project’s stage. Early on, the priority may be capital structure and procurement planning; closer to completion, it may be approvals, essential works and handover. The operating model must reflect the project’s actual constraints rather than apply the same solution everywhere. Technology supports this coordination by connecting information on construction progress, budgets, procurement, approvals and sales. But dashboards are useful only when someone has the authority and responsibility to act on what they reveal.

The real test of DaaS is whether it improves project economics. Developers should track planned versus actual completion, budget variance, material wastage, procurement lead times, cash flow predictability, collections and handover quality. Results should be compared against a credible baseline, with changes in market conditions and project complexity taken into account. DaaS will not eliminate approval delays, weak demand or every construction risk. Nor should developers surrender strategic control. The objective is to make responsibility clearer, decisions better coordinated and project performance more predictable.

Real estate doesn’t fail for lack of capable functions. It fails when Money, Material and Management move on different clocks. Developer as a Service brings them onto one coordinated execution plan. Its credibility rests on measurable outcomes: schedules held, budgets protected, working capital managed and handovers delivered as planned. That is what predictability in real estate development must ultimately mean.

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