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The residential real estate market in India is experiencing a resurgence, leading to an increase in land transactions by property developers. This trend is not limited to metropolitan areas but is also seen in tier-II and -III cities. Homebuyers have shown a heightened interest in plotted developments, especially after the outbreak of the Covid-19 pandemic. The demand for warehousing has also contributed to the rise in land deals, according to an ET report.
According to a study by JLL India, real estate developers purchased approximately 3,294 acres of land between January 2022 and October 2023.Of these transactions, 44.4% took place in tier-II and -III cities, with 1,461 acres acquired in 17 land deals.
Samujjwal Ghosh, CEO of The House of Abhinandan Lodha (HoABL) said that the Indian economy is transforming, and this growth is not limited to metro cities. According to Ghosh, HoABL’s aim is to create wealth for consumers by offering land in ‘new India’ cities and towns that have seen significant infrastructure development and connectivity, becoming important centers of commerce.
Cities such as Nagpur, Palghar, Khalapur, Panipat, Ludhiana, and Panchkula have collectively contributed around 75% of the total 1,461 acres of land acquired in tier-II and III cities.
Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, highlighted the increasing trend of strategic land acquisitions by developers in these cities to enter new markets and meet the growing demand for quality projects. He added that plotted developments and low-rise apartments are particularly popular in these areas.
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Established real estate developers are now targeting tier-II and -III cities to tap into new markets. Branded developers such as HoABL, Godrej Properties, Mahindra Lifespace Developers, and Arvind Smartspaces have closed several land transactions in these cities due to the rising demand and purchasing power of customers.
Kamal Singal, MD & CEO at Arvind SmartSpaces, noted that the desire to own land has increased post-pandemic. Plotted developments offer additional flexibility for consumers, while developers see opportunities and challenges in large horizontal developments. Singal emphasized that this segment requires a long-term vision and conviction, as it provides better returns in the medium and long term.
Of the land acquired in tier-II and -III cities, 91.6% (1,339 acres) is designated for residential developments, with a focus on plotted residential developments. Developers are primarily targeting low-rise and plotted developments in these cities, as the locals are accustomed to living in such formats.
In fact, over 1,015 acres, valued at over Rs 3,163 crore, have been allocated for plotted developments. Some developers are also planning to launch holiday homes, catering to the growing demand for second homes in vacation destinations like Shimla, Rishikesh, and Goa, among others.
According to a study by JLL India, real estate developers purchased approximately 3,294 acres of land between January 2022 and October 2023.Of these transactions, 44.4% took place in tier-II and -III cities, with 1,461 acres acquired in 17 land deals.
Samujjwal Ghosh, CEO of The House of Abhinandan Lodha (HoABL) said that the Indian economy is transforming, and this growth is not limited to metro cities. According to Ghosh, HoABL’s aim is to create wealth for consumers by offering land in ‘new India’ cities and towns that have seen significant infrastructure development and connectivity, becoming important centers of commerce.
Cities such as Nagpur, Palghar, Khalapur, Panipat, Ludhiana, and Panchkula have collectively contributed around 75% of the total 1,461 acres of land acquired in tier-II and III cities.
Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, highlighted the increasing trend of strategic land acquisitions by developers in these cities to enter new markets and meet the growing demand for quality projects. He added that plotted developments and low-rise apartments are particularly popular in these areas.
Read From ET | Realtors plans for smaller cities
Established real estate developers are now targeting tier-II and -III cities to tap into new markets. Branded developers such as HoABL, Godrej Properties, Mahindra Lifespace Developers, and Arvind Smartspaces have closed several land transactions in these cities due to the rising demand and purchasing power of customers.
Kamal Singal, MD & CEO at Arvind SmartSpaces, noted that the desire to own land has increased post-pandemic. Plotted developments offer additional flexibility for consumers, while developers see opportunities and challenges in large horizontal developments. Singal emphasized that this segment requires a long-term vision and conviction, as it provides better returns in the medium and long term.
Of the land acquired in tier-II and -III cities, 91.6% (1,339 acres) is designated for residential developments, with a focus on plotted residential developments. Developers are primarily targeting low-rise and plotted developments in these cities, as the locals are accustomed to living in such formats.
In fact, over 1,015 acres, valued at over Rs 3,163 crore, have been allocated for plotted developments. Some developers are also planning to launch holiday homes, catering to the growing demand for second homes in vacation destinations like Shimla, Rishikesh, and Goa, among others.
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