Land Deals Surge in India, Expected to Reach 3,000 Acres in FY24

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Land transactions in India are on track to hit 3,000 acres in the fiscal year 2024, marking a substantial 59% increase from the previous year. Data from property consultant Anarock reveals that deals for 2,258 acres were finalized in the first nine months of FY24, with an additional 600-700 acres expected in the current quarter.

Major players in the real estate sector, including Godrej Properties and Mahindra Lifespace, have been actively acquiring land parcels to fuel their development projects. For example, Godrej Properties recently acquired over 15 acres in Hyderabad and a 6.5-acre parcel in Noida. This surge in land acquisitions is attributed to the availability of land from various sources, including corporates, government entities, and other developers, particularly in regions like the Delhi-National Capital Region and the Mumbai Metropolitan Region.

The shift towards land acquisitions gained momentum in 2022, with developers opting for complete buyouts instead of joint development projects. This trend has been further fueled by the high demand for real estate, evidenced by a record 5.3 lakh units sold in 2023. As a result, real estate players are bolstering their land banks to meet the growing demand, leading to a significant uptick in land prices across key markets such as Pune, Mumbai Metropolitan Region, and Hyderabad.

Moreover, corporates are monetizing their non-core land assets, contributing to the increase in land availability. Government bodies like CIDCO in Maharashtra and the Haryana State Industrial and Infrastructure Development Corporation are also auctioning plots for commercial and residential purposes.

The surge in land transactions underscores the robust growth trajectory of India's real estate sector, with experts estimating the total transaction value to range between ₹35,000-40,000 crore, compared to ₹25,000-30,000 crore two years ago. This trend is expected to reshape the landscape of the Indian real estate market in the coming years, offering new opportunities and challenges for developers and investors alike.

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