Over the past 22 months, developers have acquired around 1,461 acres of land in tier-2 and tier-3 cities for residential projects, according to JLL. Notably, 44.4 per cent of these transactions across 17 deals with transaction value of ₹4,918 crore occurred in these cities.
In this period, a total of around 3,294 acres of land were acquired by real estate developers in the country. The trend is notably prominent in the northern and western regions, with significant contributions from Panipat, Ludhiana, Nagpur, and Panchkula, collectively constituting 75 per cent of the acquired land.
Driven by growing demand and customer buying capacity, established developers such as Godrej Properties, M3M, Eldeco Group, and Omaxe Group have entered or expanded in these emerging markets through recent land acquisitions. Sales potential is assessed based on the development potential area and average saleable prices in the respective micro markets where the land transactions took place.
Of the acquired land (1,339 acres), 91.6 per cent is designated for proposed residential developments, with a focus on low-rise and plotted formats, aligning with the preferences of the local residents.
Notably, around 1,015 acres are earmarked for plotted developments, valued at over ₹3,163 crore. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, anticipates a continued robust residential market with new land acquisitions in strategic locations, fostering the next wave of growth and expansion.