Land deals boom in India in 2023, driven by residential demand: Report

Land deal surge: India saw a surge in land deals in 2023, with at least 97 transactions covering over 2,707 acres, as per the latest data from Anarock. This marks a notable increase from the 82 land deals spanning over 2,508 acres in the previous year.

Residential development takes the lead

The data reveals that out of the 97 land deals in 2023, 74 deals, accounting for over 1,945 acres, were proposed for residential development. This highlights a growing demand for housing across tier 1, 2, and 3 cities in India, propelled by strong residential sales.

Apart from residential projects, the land deals also encompassed diverse development initiatives. Approximately 565 acres were allocated for Industrial & Logistic Parks and Manufacturing, over 126 acres for mixed-use development, and 27.5 acres for commercial and IT Parks.

An additional 43.35 acres across five separate deals were earmarked for other asset classes, including retail, hospitality, and undecided projects.

Urban acre showdown

The bustling city of Ahmedabad claimed a 27 per cent share with 739.8 acres in three separate deals. Bengaluru secured the second spot with a 16 per cent share, involving approximately 424.5 acres, while the Mumbai Metropolitan Region (MMR) followed closely with an 11 per cent share spanning over 289 acres.

In terms of the total number of deals, MMR led the charts with 25 land deals, closely followed by the National Capital Region (NCR) with 22 transactions in 2023.

Notable land transactions in 2023 included Supreme Universal's acquisition of 5 acres in Mumbai for residential development, Godrej Properties securing 60 acres in Chennai for plotted development, and Foxconn's significant 300-acre deal in Bengaluru for manufacturing.

Ahmedabad, with its comparatively affordable land prices, witnessed the most substantial transaction in 2023. In contrast, MMR dominated in the total number of deals, albeit for smaller land parcels.

Suburban development surges

Tier 2 & 3 cities also played their part in the real estate boom, with at least 10 land deals closed for 646+ acres. These deals encompassed various developments, including residential projects, township initiatives, manufacturing, logistics parks, and mixed-use developments.

Anuj Puri, Chair, Anarock Group, emphasised that the land acquisition spree is driven by rising demand for commercial and residential spaces, particularly in cities like Ahmedabad, where developers are keenly pursuing land deals.

According to experts, the surge in land deals not only reflects the buoyancy in the real estate market but also underscores the diverse developments shaping up across cities. The coming years are poised to witness how these acquired lands transform into vibrant, thriving communities and commercial hubs.