Developers Acquire 2,335 Acres for ₹40,000 Cr in 2024; Tier 1 Cities, 72% Share

In 2024, a notable trend emerged in India’s real estate market as developers acquired significant tracts of land at a record pace. According to a recent report by JLL, developers acquired a total of 2,335 acres for approximately ₹39,742 crore across 134 transactions in 23 cities. This remarkable investment signals a shift towards expanding development potential, particularly in residential projects, with an estimated development potential of 1,940 lakh sq ft.

Geographical Distribution of Land Acquisitions

One of the standout aspects of this report is the differentiation between Tier 1 and Tier 2/3 cities. Real estate developers acquire land with a clear geographical strategy. About 72% of the acquired land has been concentrated in Tier 1 cities, which include major urban centres like Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Pune. These cities continue to dominate the market, driven by robust infrastructure, high demand, and the presence of corporate hubs.

On the other hand, Tier 2 and Tier 3 cities captured 28% of the total land acquisitions—equating to roughly 662 acres. Emerging urban centres such as Nagpur, Varanasi, Indore, Vrindavan, and Ludhiana have unexpectedly become hotspots. This diversification indicates that investors are beginning to recognise the untapped potential in these secondary markets, where lower entry costs and promising growth prospects make these regions increasingly attractive.

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Investment and Development Outlook

The report suggests that the investment needed for real estate development on these newly acquired lands in 2024 could exceed ₹62,000 crore. Notably, 81% of the land real estate developers buy is earmarked for residential projects. This focus on residential development reflects the country's persistent demand for housing and the continuous growth of India’s urban population.

Additionally, the data from the report is part of a broader trend. During the 2022–24, developers acquired 5,885 acres for about ₹90,000 crore. The consistent rise in land acquisition by real estate developers indicates a strong market sentiment despite occasional volatility in economic conditions.

Regional Highlights: MMR and NCR

Mumbai Metropolitan Region (MMR):
MMR emerged as a frontrunner in land acquisitions in 2024, with developers securing approximately 407 acres through 19 separate deals. This represents 17% of the total land transactions and marks a 41% increase from the previous year's 288.9 acres. MMR's strategic location and rapid urban development have boosted its position as a prime target for developers looking to tap into luxury and mixed-use projects.

Delhi-NCR:
Within the Delhi-NCR region, real estate developers acquire land through 36 transactions. Gurugram, a prominent market within NCR, saw the highest activity with 21 deals, followed by Noida with 14 and Ghaziabad with one. Delhi-NCR led in terms of transacted land value at ₹11,339 crore. The region’s thriving infrastructure and business ecosystem continue to attract investments, making it a consistent leader in the real estate space.

Table: Regional Land Acquisition Data (2024)

Note: The above table summarises key data points from the report, highlighting the regional distribution of land acquisitions.

Factors Driving the Trend

Several factors contribute to why real estate developers acquire land in such volumes:

• Urban Expansion: With continuous urbanisation and the increasing demand for housing, developers are looking to expand their portfolios in high-growth areas.
• Infrastructure Investments: Government initiatives like the Prime Minister’s Gati Shakti mission and various state-level projects are significantly boosting connectivity, making both Tier 1 and emerging Tier 2/3 markets more attractive.
• Favourable Financing: Improved credit conditions and a stable policy environment have encouraged developers to take on larger land acquisitions.
• Market Diversification: With traditional metropolitan markets reaching saturation, real estate developers focus on Tier 2 and Tier 3 cities, which offer significant untapped potential.

Conclusion

The data from 2024 clearly shows that real estate developers acquire land strategically, with 72% of the acquisitions concentrated in Tier 1 cities and 28% in Tier 2/3 cities. This shift towards geographical diversification indicates the evolving dynamics of the Indian real estate market. With substantial investments to unlock development potential—especially in the residential sector—developers are poised to cater to the growing housing demand driven by rapid urban expansion.

Investors, homebuyers, and industry stakeholders should closely monitor these trends. The robust focus on urban infrastructure and connectivity improvements, combined with favorable financing conditions, suggests a positive outlook for the real estate market's future. As developers continue to acquire land and push forward with large-scale projects, the Indian property market is set to experience significant growth and transformation in the coming years.

By understanding the strategic moves real estate developers acquire, stakeholders can better position themselves to capitalise on emerging opportunities in mature and emerging urban centres.

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