Mumbai, March 12
Real estate developers across India embarked on an ambitious expansion drive, acquiring 2,335 acres of land valued at a staggering Rs 39,742 crore in 23 key cities during 2024, according to a JLL report released on Wednesday.
These strategic land acquisitions have laid the foundation for potential development of 194 million sq. ft of real estate which will require an estimated investment exceeding Rs 62,000 crore, the report states.
It highlights that while Tier I cities maintained their dominance, accounting for 72 per cent of the land purchases, the year witnessed a significant shift towards smaller urban centres as well. Tier II and III cities claimed a substantial 28 per cent share of the acquisitions, translating to 662 acres of land.
This trend signals a growing recognition of the untapped potential in these emerging markets.
Notably, cities like Nagpur, Varanasi, Indore, Vrindavan, and Ludhiana emerged as unexpected hotspots in this land acquisition spree.
Their prominence in the year's transactions underscores a broader trend of geographical diversification in real estate development, moving beyond the traditional metropolitan strongholds, the report observes.
This strategic pivot towards a more balanced urban development model not only reflects changing market dynamics but also hints at a future where growth is more evenly distributed across India's urban landscape.
The JLL analysis indicates that the transacted per acre land cost increased continuously in the last three years from around Rs 11 crore in 2022 to Rs 17 crore in 2024.