India’s land market has witnessed a sharp rise in activity over the last five years, with 18,158 acres transacted in the deals spanning across more than 880 deals in 33 cities between 2021 and the first quarter of 2026, as per Cushman & Wakefield. The transactions suggest a widening of the expansion of real estate development, with infrastructure spending, job creation and rising demand for housing, offices, logistics and other assets. The trend is also gaining further visibility beyond major metros, with Tier-II cities accounting for larger share of land transactions in annual terms.
Land transactions rise sharply across Indian cities
Annual land transactions have grown from 813 acres in 2021 to 6,181 acres in 2025 at a compounded annual growth rate (CAGR) of 66%, and is further expected to increase by 1,194 acres in the first quarter of 2026. This comes amid a broader increase in land activity, with 111 land deals spanning more than 2,994 acres recorded in FY26.
Cushman & Wakefield estimates that the land transacted during the period could accommodate nearly 1.4 billion sq ft of future built-up area with an estimated development value of around Rs. 16.67 trillion on planning norms and capital values.
Residential remains the biggest driver of land demand
Housing has been the largest contributor to land activity, accounting for 45% of the total acreage transacted between 2021 and Q1 2026. More than 7,700 acres were acquired for residential development during the period, reflecting developers’ efforts to add to their land pipelines amid sustained housing demand.
However, these transactions represent development potential rather than immediate housing supply. The pace at which this land becomes residential projects will depend on approvals, project planning, construction and demand in individual markets.
Tier-II cities gain ground as development spikes
While Tier-I cities contributed to 71% of the overall acreage transacted during the period, Tier-II activity has grown massively. Annual transactions in Tier-II cities grew from just 16 acres in 2021 to 2,120 acres in 2025. Their share of annual transactions grew from roughly 2% to 34%. Average deal size moved in the opposite direction of Tier-I markets increasing from 8 acres to 53 acres in Tier-II cities, while average Tier-I transaction size decreased from 21 acres to 10 acres.
Coimbatore, Indore, Visakhapatnam, Ludhiana, Panipat and Nagpur are amongst the Tier-II markets which have witnessed increased activity. Satellite cities around larger urban centres are also emerging development corridors as improved connectivity makes these locations more accessible.
Parvinder Singh, CEO, Trident Realty,
"Cushman & Wakefield’s latest land market report reflects how India’s real estate growth is gradually expanding beyond the established metros. Tier-II markets accounted for 67% of land transacted in Q1 2026, with Panipat recording 393 acres of land transactions between 2021 and Q1 2026. The availability of larger land parcels, improving connectivity and evolving consumer aspirations are creating a strong case for planned development in these markets. This is particularly relevant for integrated townships, where residential, commercial, social and lifestyle infrastructure can come together within a well-planned ecosystem. As urbanisation expands outward, Tier-II cities are likely to play a more meaningful role in India’s next phase of real estate growth."
Land demand spreads beyond housing
The increase in land transactions is not limited to residential development. Office-linked land transactions increased fivefold from 76 acres in 2021-22 to 384 acres in 2024-25.
Industrial and Logistics purchases surged by almost 13 times in terms of acres during the same time period, comprising 7% of total deals in 2021 as compared to 27% in 2021. The demand for industrial and warehousing properties is being supported by manufacturing activities, government initiatives like Make in India, production-linked incentives schemes apart from e-commerce and modern retail. Data centres are another emerging source of land demand, with the size of transactions in the segment increasing sharply since 2021.
Land deals could create 1.4 billion sq ft of future development
The scale of recent transactions indicates the amount of real estate that could potentially be developed over the coming years. Cushman & Wakefield estimates the 18,158 acres could support 559–768 million sq ft of residential development, 205–225 million sq ft of industrial and logistics space and 109–179 million sq ft of office space.
Data centres could account for another 113–124 million sq ft, while retail could contribute 8–26 million sq ft.
The figures do not imply guaranteed future supply, but rather indicate where developers are looking to establish themselves in the next phase of growth. With land prices already rising across several Tier-I and Tier-II markets, Cushman & Wakefield expects the pace of appreciation to moderate, although prices could continue to rise depending on local economic activity and infrastructure development.
Sources: Cushman and Wakefield
