Land acquisition activity across India's real estate sector slowed during the first nine months of 2026, with developers purchasing significantly less land compared with the same period last year. The decline reflects a change in expansion strategies as rising land prices, capital requirements and project viability increasingly influence investment decisions. Developers are becoming more cautious about committing funds to outright land purchases and are exploring alternative arrangements, particularly joint development agreements (JDAs), to secure land for upcoming projects.
Data from Anarock Research & Advisory shows that 76 land deals covering approximately 1,445 acres were recorded between January and September 2026. During the corresponding nine-month period in 2025, developers completed 99 transactions involving nearly 3,292 acres. This represents a 56% year-on-year reduction in the total acreage transacted, alongside a decline in the number of deals.
The figures point to a more measured approach to land procurement, with developers focusing on project-specific opportunities rather than expanding their land banks through large-scale acquisitions. The preference for partnership-based development is also gaining ground as companies seek to manage capital exposure while maintaining access to suitable land parcels.
Joint Development Agreements Account for 25% of Land Deals
Joint development agreements are becoming an increasingly preferred route for developers seeking access to land without purchasing it outright. During January–September 2026, JDAs represented approximately 25% of all recorded land transactions. At least 19 of the 76 deals completed during this period followed the partnership-based model.
The longer-term data also reflects the growing acceptance of JDAs in India's property market. Transactions under this arrangement increased from 10 in 2022 to 30 in 2025. Their contribution to total land deals rose from around 12% in 2022 to nearly 24% in 2025, reaching 25% during the first nine months of 2026.
Under a JDA, a developer enters into an agreement with a landowner to develop the property, with both parties receiving an agreed share of the project's proceeds or developed area. This arrangement reduces the need for developers to make substantial upfront investments in land while allowing landowners to participate in the development process.
Mayank Saksena, MD and CEO, Land Services, Anarock Group, observed that the 76 transactions covering approximately 1,445 acres during 9M 2026 indicate a shift towards more selective land procurement.
He noted that developers are increasingly considering partnerships with existing landowners as development economics become a major factor in investment decisions. JDAs provide an alternative to direct purchases, enabling developers to pursue projects without allocating significant capital towards acquiring land.
Large Scale Land Deals Sees a Steep Reduction
The decline in land acquisition activity was more pronounced in transactions involving larger parcels. The number of deals covering 50 acres or more dropped from 12 in the first nine months of 2025 to five during the same period in 2026. The total acreage involved in these transactions also fell significantly, from approximately 2,398 acres to 588 acres, indicating a reduced appetite among developers for large land purchases that require substantial capital investment and longer development commitments.
Between 2022 and September 2026, India recorded 516 land transactions covering approximately 12,958 acres. During this period, 2024 registered the highest number of transactions, with 133 deals covering more than 2,515 acres. In 2025, the market recorded its highest cumulative acreage, with 126 transactions spanning approximately 3,772 acres. However, during January–September 2026, acquisition activity slowed to 76 deals covering around 1,445 acres. The figures indicate that changes in total acquired acreage are influenced not only by the number of transactions but also by the size of individual land parcels.
Tier-II and Tier-III Cities Gain Attention for Large Land Parcels
Established metropolitan regions continue to dominate the number of land transactions, but emerging cities are attracting attention for acquisitions involving larger plots. Developers are exploring these markets for opportunities to undertake residential, commercial and mixed-use developments.
Some of the biggest individual land transactions recorded between 2022 and September 2026 took place beyond the conventional metropolitan markets. Coimbatore accounted for a major 714-acre transaction, while Hyderabad recorded a 600-acre deal. Ahmedabad also featured prominently, with two transactions involving approximately 500 acres and 440 acres.
In terms of total acreage acquired, the Mumbai Metropolitan Region (MMR) ranked first with approximately 2,798 acres. The National Capital Region (NCR) followed with 2,012 acres, while Bengaluru recorded around 1,679 acres.
The seven established metropolitan markets, comprising MMR, NCR, Bengaluru, Hyderabad, Pune, Chennai and Kolkata, accounted for nearly 86% of the 516 transactions recorded during the period. However, their combined contribution to total acreage was approximately 57%.
This difference highlights the nature of land transactions across various markets. Established metropolitan regions continue to generate a larger number of relatively smaller deals, while emerging locations are increasingly featuring in transactions involving extensive land parcels.
Gujarat Records Significant Share of Large Land Acquisitions
Gujarat has emerged as an important destination for large-scale land transactions, particularly across Ahmedabad, Surat and Vadodara. Together, these three cities accounted for approximately 2,020 acres, equivalent to nearly 16% of the total acreage tracked between 2022 and September 2026.
Of the 516 land transactions recorded across India during this period, 61 involved parcels measuring at least 50 acres. Collectively, these larger deals represented approximately 63% of the total land area transacted. Notably, 29 of these 61 transactions took place outside the seven established metropolitan markets.
Apart from Gujarat, several other cities are attracting sizeable land investments. Coimbatore recorded approximately 770 acres in cumulative acquisitions, while Amritsar, Nagpur, Panipat and Ludhiana also featured among the notable markets despite having comparatively fewer transactions.
The latest figures indicate that India's real estate land market is undergoing a shift in acquisition preferences. Developers are placing greater emphasis on project feasibility, capital management and partnerships with landowners rather than relying entirely on outright purchases. While established metropolitan markets continue to account for most transactions, emerging cities are gaining relevance in large-parcel acquisitions, creating new opportunities for developers seeking land for future projects.
Industry Experts Opinions
Mr. Suresh H. A., Managing Director, Sanjeevini Group, a Bengaluru-based real estate firm, said, “The land acquisitions activity during the first nine months of 2026 reflects a more disciplined and feasibility-driven approach by developers across the country. The market is witnessing a clear shift from aggressive land banking towards strategic acquisitions.
Developers are increasingly prioritising parcels with strong connectivity, established social infrastructure, clear development potential and sustainable demand prospects. The growing preference also indicates that developers are becoming more conscious of capital deployment and project-level risks.
In Bengaluru, this trend is particularly relevant as the city's growth continues to be driven by its technology ecosystem, GCC expansion, infrastructure development and steady end-user housing demand. Bengaluru remains among the country's leading land markets. However, the focus is increasingly shifting towards strategically located parcels along established and emerging growth corridors rather than large-scale speculative acquisitions. JDAs offer developers an opportunity to access well-positioned land parcels while optimising upfront capital commitments. Going forward, we expect land transactions to remain selective, with developers favouring locations that offer a clear demand pipeline, infrastructure visibility and the potential for timely project execution.”
Mr. Lalit Parihar, Managing Director, Aaiji Group, a real estate firm, a Gujarat-based real estate firm, said, “The trend reflects a sign of greater maturity in India's real estate market. Developers are becoming more selective about land economics, project viability and future absorption potential. The rise in JDAs reflects an evolving development model in which landowners and developers are collaborating to unlock land value while distributing capital commitments and development risks. This approach is particularly relevant in a market where land costs, construction expenses and the need for financial discipline play an important role in project planning.
Ahmedabad presents an interesting case within this national trend highlighting the impact of a few large transactions on the city's overall acquisition numbers and reflecting the availability of sizable development opportunities in select growth pockets. With Ahmedabad benefiting from infrastructure expansion, industrial development, improving connectivity and growing residential demand, the city's land market has considerable long-term potential. However, developers are likely to remain focused on locations with strong economic drivers and clear end-user demand. We expect JDAs and other partnership-led models to gain further traction, particularly for large land parcels, while outright acquisitions will increasingly be guided by location advantage, pricing discipline and development feasibility.”
Mukesh Choudhary, MD, Accuspace, a real estate developer specialising in office and warehousing segments, said, “The land acquisitions trend across reflects a shift towards a more cautious, strategic and opportunity-driven approach to real estate development. It shows developers are increasingly prioritising the quality of land parcels over the scale of acquisition. Factors such as location, connectivity, development potential, land pricing and expected demand are becoming central to investment decisions. The growing adoption of Joint Development Agreements (JDAs) highlights the industry's preference for capital-efficient development models. Rather than committing substantial capital towards outright land purchases, developers are exploring partnerships that allow them to manage financial exposure while pursuing viable projects.
This changing investment approach also creates an opportunity for Tier-2 cities to emerge as alternative growth destinations for real estate developers. These markets offer opportunities to acquire strategically located land parcels, develop projects at relatively competitive entry costs and cater to an expanding base of homebuyers and businesses.
Going forward, we expect land acquisition strategies to become more decentralised, with developers increasingly evaluating emerging cities alongside established metropolitan markets. The focus, however, will remain on locations backed by genuine economic activity, infrastructure visibility and sustainable end-user demand.”
The changing pattern of land transactions indicates that India's real estate sector is moving towards a more selective and partnership-driven approach to land procurement. While established metropolitan markets continue to account for a significant share of transactions, emerging cities are gaining attention for large land parcels and future development opportunities. The growing adoption of JDAs further reflects developers' preference for managing upfront capital requirements while sharing development risks with landowners. Going forward, acquisition decisions are likely to be guided by land pricing, infrastructure connectivity, location advantages and the potential for project execution and sales absorption.
