Developers Acquired 1,339 Acres Land To Develop Residential Projects In 2023
In the 22-month period from January 2022 – October 2023, around 3,294 acres of land were acquired by real estate developers in the country. A substantial proportion (44.4%) of these land deals were transacted in Tier 2 and 3 cities, with a total of 1,461 acres being acquired across 17 separate land deals. This trend has been gaining momentum in northern and western India, in particular. Panipat, Ludhiana, Nagpur and Panchkula collectively contributed to around 75% of the total 1,461 acres of acquired land. Established real estate developers are now targeting new markets, by entering Tier 2 and 3 cities in the country, to launch projects. Data indicates that driven by the increasing demand and buying capacity of the customer’s, branded developers have successfully closed many land transactions in these cities. In the north, developers are venturing into cities like Panipat, Sonipat, Kurukshetra, Panchkula, Lucknow, Jaipur, and Ludhiana, and in the west, cities like Panipat, Sonipat, Kurukshetra, Panchkula, Lucknow, Jaipur, and Ludhiana, and in the west, cities like Nagpur, Khalapur, Surat and Palghar have attracted national level players. Sales potential is estimated considering the loading component of the development potential area and the average saleable price in the respective micro markets where the land has been transacted. It is pertinent to note that 91.6% of the land acquired (1,339 acres) is for proposed residential developments, with a majority being planned as plotted residential developments/units. 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 INR 3,163 crore. Buyers too are looking to purchase quality homes in Tier 2 and 3 cities. Established real estate players entering these cities have enhanced the home buyer confidence, as these developers have a good track record and strong execution capabilities, along with access to institutional capital. These developments have proven successful and are very well received by the buyers. 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.
Tags : Panipat Sonipat Kurukshetra Panchkula Lucknow Jaipur Ludhiana developments Shimla Rishikesh