Digital land records to boost FDI: Developers to gain from faster acquisitions; residential and commercial sectors set to benefit
The nationwide initiative for complete digitalisation of land records by December will significantly enhance foreign direct investment (FDI) in real estate, as land procurement remains the primary challenge for developers, according to industry specialists.Property acquisition for commercial spaces, including offices, logistics and data centres, will become more efficient, while the residential sector will see improvements as clear ownership titles support mid-range and premium developments in cities like Gurgaon and Chennai.“These reforms are among the most critical factors for unlocking large-scale foreign investment and ensuring sustainable growth in Indian real estate. Digitised records enable faster land acquisition for Grade-A office complexes,” said Anshuman Magazine, chairman & CEO, India, Middle East and Africa, CBRE, as quoted by Economic Times. “Digitisation of land records is not optional anymore—it’s a necessity. Some states have made progress, though the extent varies, but the larger point is that India has no choice but to digitise land wherever possible,” it added.Current statistics from the land resources department indicate 372.12 million (99.8%) of available land records have been digitised. Additionally, 97.3% of cadastral maps have been converted to digital format. Furthermore, 89.7% of revenue courts and all sub-registrar offices nationwide are now computerised.“The single biggest challenge that land intensive sectors like warehousing, township projects and data centres face is land acquisition. In most cases, except in the rare few where the government or authorities are selling or leasing the land, land titles are disputed, ownership is not properly recorded or mutation is absent which makes the process of acquisition costly, time-consuming and open to litigation,” said Gagan Randev, executive director, India Sotheby’s International Realty.Digital records ensure clarity regarding property titles. “Digitised records will not only streamline land transactions but also enhance investor confidence. Greater transparency and ease of verification will reduce disputes, accelerate project completion and create a more conducive environment for both domestic and foreign investments,” said Pradeep Aggarwal, founder and chairman of Signature Global (India) Ltd.According to Cushman & Wakefield, institutional investment in Indian real estate reached Rs 17,530 crore ($2.05 billion) during the June quarter, showing a 67% increase quarter-on-quarter.The first half of 2025 saw institutional investment of $3.3 billion, compared to $7.1 billion for the entire 2024.“We expect this move to significantly boost FDI inflows, as global investors place high value on regulatory clarity and ease of transactions,” said Ashish Sharma, assistant vice president of operations, Brahma Group.Foreign investors contributed 68% of investments in the June quarter, with domestic investors accounting for 32%.The residential sector led with 24% of inflows in April-June, followed by office (22%) and retail sectors (19%). Mumbai attracted 42% of investments, with Kolkata and Delhi-NCR receiving 19% and 16% respectively. Alternative investment funds began deploying capital raised in 2024.Magazine, quoted by ET, stated that digital land records will establish a transparent, secure system, minimising fraud and bringing India in line with international standards like Singapore’s e-services or Estonia’s e-Land Register.
