Real estate developers acquire 2,335 acres for ₹40,000 crore in 2024; Tier 1 cities hold 72%, Tier 2 cities 28% share
Real estate developers acquired 2,335 acres of land for ₹39,742 crore across 134 transactions in 23 cities, paving the way for 194 million sq. ft of potential development. While Tier I cities accounted for 72% of the land purchases, Tier II and III cities saw a significant shift, capturing 28% of the land, or 662 acres, a report by JLL has said.
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, the report showed.
Tier I cities — Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai Metropolitan Region and Pune — maintained their dominance, accounting for 72% of land purchases. Tier II and III cities claimed a substantial 28% share of the acquisitions, translating to 662 acres of land.
“This trend signals a growing recognition of the untapped potential in these emerging markets,” JLL said.
The report noted that an estimated investment exceeding ₹62,000 crore is required for real estate development on newly acquired lands in 2024. The land acquisitions of 2,335 acres in 2024, valued at ₹39,742 crore, will generate development potential of 1,940 lakh sq ft of real estate. The consultant said 81% of the land bought in 2024 will be used for development of residential projects.
MMR emerges as frontrunner in land acquisition in 2024
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% of the year’s total land transactions. This represents a significant 41% increase from the previous year’s 288.9 acres, the report noted.
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. Delhi NCR led in terms of transacted value of land at ₹11,339 crore, it said.
“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 homebuying interest in the residential sector as a top priority for augmenting their new supply pipeline,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
“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,” he added.
Real estate developers have acquired 5,885 acres of land during 2022-24 for ₹90,000 crore to build projects amid strong demand for housing and commercial assets, according to JLL India.
During the 2022-24 period, real estate developers bought 5,885 acres for ₹90,057 crore, it said.
The data includes only outright purchases by real estate developers, JLL said. Joint development agreements (JDAs), signed between developers and land owners, have not been included for the analysis.
