Kolkata, Mar 12 (UNI) The year 2024 marked a watershed year in India's

real estate sector, characterized by a surge in land acquisitions.

Developers across the country embarked on an ambitious expansion

drive, securing a vast 2,335 acres of land through 134 distinct

transactions in key 23 cities. These strategic land acquisitions,

valued at a staggering INR 39,742 crore, laid the foundation for

potential development of 194 million sq. ft of real estate,according

to , Chief Economist and Head of Research and REIS, India, JLL.

Samantak Das

While Tier I cities maintained their dominance, accounting for 72

percent of the land purchases, the year witnessed a significant shift

towards smaller urban centers. Tier II and III** cities claimed a

substantial 28 pc share of the acquisitions, translating to 662 acres

of land. This trend signals a growing recognition of the untapped

potential in these emerging markets. Notably, cities like Nagpur,

Varanasi, Indore, Vrindavan, and Ludhiana emerged as unexpected

hotspots in this land acquisition spree. Their prominence in the

year's transactions underscores a broader trend of geographical

diversification in real estate development, moving beyond the

traditional metropolitan strongholds.

This strategic pivot towards a more balanced urban development model

not only reflects changing market dynamics but also hints at a future

where growth is more evenly distributed across India's urban

landscape.

Tier 1 cities include the top 7 markets in India – Bengaluru, Chennai,

Delhi NCR, Hyderabad, Kolkata, Mumbai Metropolitan Region and Pune.

Tier II and III cities include all the other markets not covered in

Tier I cities.

The analysis indicated that the transacted per acre land cost

increased continuously in the last three years from Rs Rs 11 crore in

2022 to Rs 17 crore in 2024. Post COVID-19, 2024 stands out as the

best-performing year for real estate across office and residential

asset classes reflected by the strong performance indicators of both

demand and supply. As the real estate sector’s upward growth

trajectory continues, developers are investing steadily in building

their land bank across the country for their future development

pipeline.

The Mumbai Metropolitan Region (MMR) emerged as the frontrunner in

land acquisition for 2024, with developers securing approximately 407

acres through 19 separate deals, accounting for 17 pc of the year's

total land transactions. This represents a significant 41 pc increase

from the previous year's 288.9 acres. Notable transactions included

single deals of 50 acres or more in micro-markets such as Khalapur,

Palghar, and Khapoli. While MMR led in terms of land area acquired,

the National Capital Region (NCR) surpassed other cities in the number

of deals closed, with 36 land transactions throughout the year. Within

NCR, Gurugram saw the highest activity with 21 deals, followed by

Noida with 14, and Ghaziabad with one.

“In 2024, 81% of the land acquired during the year by developers was

earmarked for proposed residential developments. This would translate

into a massive development potential of 158 million sq. ft and cater

to the ever-increasing housing demand in the country. Developers are

banking on the continued home buying interest in the residential

sector as a top priority for augmenting their new supply pipeline. The

recent reduction in policy rate by the Reserve Bank of India and the

fiscal impetus given to the middle class in the last union budget are

likely to keep the demand growth trajectory elevated. These

developments will support the upcoming residential supply. Other asset

classes such as industrial and warehousing, office, retail and

hospitality witnessed limited developer interest for proposed land

bank use, when compared to the traction in the residential sector”

said Das.

UNI PC KK