Real estate developers have purchased over 2,200-acre land parcels for around Rs 26,000 crore since January last year, primarily to create residential developments as per JLL India.
The developers have bought around 2,181 acres of land area in the last 17 months (January 2022-May 2023) valued at over Rs 26,000 crore, with an estimated development potential of approximately 209 million square feet in 104 different land acquisitions.
JLL stated that 578 acres (27%) of the 2,181 acres were acquired in the first five months of 2023 alone. Branded developers have successfully finalised many land sales in prominent metros as well as tier 2-3 cities, owing to the real estate sector’s resiliency.
In terms of total land area transacted, Delhi-NCR, Chennai, Mumbai Metropolitan Region (MMR), and Bengaluru dominate with a 72%1 share (approximately 1,576 acres) and a development potential of around 150 million square feet in 79 individual land acquisitions.
In which, Pune, Kolkata, and Hyderabad account for 9% of the total. Surat, Ahmedabad, Jaipur, Lucknow, Nagpur, Panchkula, and Kurukshetra contributed the rest.
Godrej Properties, M3M, Max Estates, Birla Estates, and Mahindra Lifespaces were among the real estate developers who actively acquired land.
NCR encompasses the National Capital Territory of Delhi, Gurgaon, Noida, Ghaziabad, Faridabad, Bahadurgarh, Sonipat, and Panipat. Mumbai, Thane, Panvel, Palghar, and Khalapur are all part of the MMR.
Surat, Sanand, Ahmedabad, Jaipur, Lucknow, Nagpur, Panchkula, and Kurukshetra are among the other cities. ‘Intriguingly, 84% of the entire land area traded (approximately 1,822 acres) is for intended residential developments out of the total 2,181 acres.
The estimated development potential of these residential land transactions is approximately 165 million square feet. The sales potential from these residential transactions is projected to be over Rs 1,22,000 crore, according to the expert.