721 Acres Of Land Deals Closed In January-March, Nearly 3,000 Acres In FY24: Anarock
Land deals in terms of acres have increased 61% annually in January-March and 58% annually in 2023-24, it said.
Builders and other entities have closed at least 29 land deals involving 721 acres during January-March this year to expand their businesses amid surge in demand especially for housing, according to Anarock.
During the year ended March 2024, the property consultant said real estate developers and other entities have closed 101 land deals, cumulatively accounting for 2,989 acres.
Land deals in terms of acres have increased 61% annually in January-March 2024 and 58% annually in 2023-24.
At least 26 land deals for around 449 acres were closed during January-March 2023, while 88 land deals for 1,886 acres were struck during the full 2022-23 fiscal.
These land deals, which were struck across major tier I, tier II and tier III cities, include outright purchase-sale transactions and also partnerships with landlords called Joint Development Agreements.
"Out of the total land deals in 2023-24, over 83 deals for about 1,135 acres were closed in the top 7 cities alone," Anarock Chairman Anuj Puri said. "The remaining 18 deals, accounting for over 1,853 acres, were sealed in various tier 2 and 3 cities like Ahmedabad, Ayodhya, Jaipur, Nagpur, Mysuru, Ludhiana, and Surat."
"Tier 2 & 3 cities have once again emerged as growth engines, thanks to their rapidly improving infrastructure and growth opportunities," Puri said.
Among cities, Anarock said Delhi-NCR clocked maximum 12 land deals for 160 acres during January-March 2024 and 29 land deals for 313 acres in the entire 2023-24 fiscal.
Commenting on the findings, Aakash Ohri, Joint Managing Director of DLF Home Developers Ltd., said, "Land deals in the NCR have peaked due to urbanisation, infrastructure development, and investment opportunities. Future developments and potential returns on investment are high contributors to the rise in land transactions."
The surge in land deals underscores the buoyancy of the housing market, Ohri noted.
Signature Global Chairman Pradeep Aggarwal said, "The demand is robust for all kinds of properties from mid-segment to luxury and this is resulting in a significant number of land deals across the country including Delhi-NCR."
"This is expected to pave the way for a robust pipeline of new projects in the coming months, which in turn is likely to provide homebuyers a wider range of options to choose from," Aggarwal added.
Mohit Malhotra, Founder & CEO of realty firm NeoLiv, said the surge in land deals reflects the enduring demand for housing that has sustained since 2023. "The mid-housing segment is experiencing a significant uptick, mirroring the evolving preferences of homebuyers."
As per Anarock data, out of the total land deals in 2023-24, around 80 land deals for 2,252 acres are for proposed residential, plotted development & township projects.
Commercial and retail real estate projects together saw four separate deals for over 42 acres closed. At least 79 acres in 4 separate deals have been earmarked for mixed-use developments.
Around 164 acres in five separate deals were closed for industrial, IT park, and logistics park. Three land deals, involving 411.75 acres, were for setting up of manufacturing facilities.
Among developers, DLF, Godrej Properties, Macrotech Developers, Prestige Group, Brigade Group, Signature Global, Birla Estates, Eldeco and Mahindra Lifespace, among others, were engaged in land acquisitions during the previous fiscal.
