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real estate: Realtors acquired 1,339 acres in tier II, III cities in 22 months for residential projects


The robust recovery in the residential real estate market has prompted property developers to seek and conclude transactions for land parcels across the country including tier II and III cities.

Around 3,294 acres of land parcels were acquired by real estate developers in the country during the 22-month period from January 2022 to October 2023. A substantial proportion or 44.4% of these land deals were transacted in tier II and III, with a total of 1,461 acres being acquired across 17 separate land deals, showed data from JLL India.

Key cities such as Nagpur, Palghar, Khalapur, Panipat, Ludhiana, and Panchkula have collectively contributed to around 75% of the total 1,461 acres of acquired land parcels.

“Strategic land acquisitions by real estate developers in tier II and III cities to enter new markets and leverage the rising demand for quality projects is on the rise. The trend of launching plotted developments and low-rise apartments is specifically prevalent in these cities,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Established real estate developers are now targeting new markets, by entering these tier II and tier III cities in the country, to launch projects. The data indicates that driven by the increasing demand and buying capacity of the customers; branded developers have successfully closed many land transactions in these cities.

Interestingly 91.6% of the land acquired or 1,339 acres is for proposed residential developments, with a majority being planned as plotted residential developments. Developers are primarily focusing on low rise and plotted developments in these cities as the locals are accustomed to living in these types of formats.In fact, around 1,015 acres have been earmarked for plotted developments and valued at over Rs 3,163 crore. Some developers are also planning to launch holiday homes as people in metros are looking for second homes in vacation destinations like Shimla, Rishikesh, Goa, etc.


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