Real Estate: In the last 22 months, 75% of all land deals in India have occurred in just 4 small cities

According to a survey, tier-1 and tier-2 cities in India have acquired the largest share of land sales by real estate developers, despite the fact that the real estate market has been experiencing tremendous demand since the beginning of 2022 after a two-year pause due to the coronavirus epidemic. Just four cities—Panipat, Ludhiana, Nagpur, and Panchkula—collectively accounted for about 75% of the 1,461 acres of bought property between January 2022 and October 2023, according to the most recent JLL research.

“Brand developers have successfully closed many land transactions in these cities due to the increasing demand and buying capacity of the customers,” according to a statement from JLL.

Real estate developers in the nation purchased around 3,294 acres of property over the 22-month period from January 2022 to October 2023. According to the research, a significant amount (44.4%) of these land transactions took place in Tier 2 and 3 cities, with a total of 1,461 acres being purchased via 17 different land transactions.

Developers are making their way into northern towns like as Panipat, Sonipat, Kurukshetra, Panchkula, Lucknow, Jaipur, and Ludhiana; meanwhile, national players are drawn to western cities like Nagpur, Khalapur, Surat, and Palghar.

Around 75% of the 1,461 acres of purchased land were provided by Panchkula, Nagpur, Panipat, and Ludhiana combined.

Ninety-six percent, or 1,339 acres, of the 3,294 acres of land that have been purchased during the last 22 months are designated for planned residential projects, the bulk of which are plotted residential developments or units.

Since the residents of these communities are used to living in these kinds of configurations, developers are mostly concentrating on low-rise and planned constructions. Actually, 1,015 acres worth of land have been set aside for planned constructions; this is according to JLL.

“Strategic land acquisitions by real estate developers in Tier 2 and 3 cities to enter new markets and leverage the rising demand for quality projects is on the rise,” said Samantak Das, chief economist and head of research at JLL’s REIS-India. Plotted projects and low-rise apartment buildings are particularly common in these cities.

He said that around Rs 3,163 crore worth of land purchases for planned plotted projects had been locked in during the previous 22 months. It is anticipated that the emergence of new residential developments would be reinforced by more land purchases in growth corridors and key areas.

Recently, Godrej Properties was able to sell phase 1 of their projected development project in Sonipat within two days of its introduction, while DLF’s first project in Panipat sold out within an hour of its launch.

With recent land purchases, well-known developers like Godrej Properties, M3M, Eldeco Group, and Omaxe Group have also joined or expanded in these developing areas.