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