India’s real estate developers and institutional investors returned decisively to the land market in 2025, signalling renewed confidence in long-term growth prospects. Stronger balance sheets, more disciplined underwriting practices, and improved visibility on demand encouraged developers to commit fresh capital to land acquisitions across metros and emerging cities.
According to ANAROCK Research, while the number of land transactions in 2025 was marginally lower than in 2024, the overall land volume transacted during the year surpassed last year’s levels. Developers collectively acquired thousands of acres across residential, commercial, industrial, and mixed-use formats, reflecting optimism around housing demand, office absorption, and infrastructure-led development.
Industry experts say the shift points to a more measured but confident phase in real estate, where land buying is driven less by speculation and more by strategic project planning.
MMR leads land activity nationwide
The Mumbai Metropolitan Region (MMR) emerged as the most active market for land transactions in 2025, both in terms of deal count and land area. Anuj Puri, Chairman of the ANAROCK Group, said MMR accounted for 32 land deals spanning over 500 acres during the year, representing more than 13% of the total land transacted across India.
“Residential, commercial, data centres, industrial and plotted developments are among the planned projects in the region,” Puri said, highlighting the diversity of development intentions. Despite sharp increases in land prices over recent years, developers continue to pursue prime parcels in MMR, underlining sustained confidence in the region’s long-term fundamentals.
Not just luxury housing driving demand
Importantly, land buying activity in 2025 was not confined to luxury residential projects. Developers expanded their acquisition strategies to include integrated townships, plotted developments, industrial parks, data centres, logistics hubs, and mixed-use formats.
Of the 126 land deals closed across India during the year, 96 deals covering nearly 1,877 acres are proposed for residential development across tier 1, 2, and 3 cities. Industrial and logistics parks accounted for 597 acres across four deals, while mixed-use developments saw eight deals spanning approximately 1,046 acres.
Commercial spaces and data centres together accounted for 12 deals covering about 79.6 acres, while retail and warehousing projects involved over 120 acres across three transactions. In three deals spanning roughly 51 acres, the final development purpose is yet to be decided.
This diversification reflects changing urban needs and evolving consumption patterns, with developers increasingly hedging risk by spreading investments across asset classes.
Bengaluru, Pune and NCR remain active
Bengaluru followed MMR closely, recording 27 land deals covering over 454 acres, accounting for about 12% of the total land area transacted in 2025. The city continues to attract developers for residential projects, including villas and plotted developments, as well as commercial and warehousing assets.
Pune also saw robust activity, with 18 deals closed for a cumulative 308.49 acres. The land parcels are earmarked for residential projects, mixed-use developments, townships, retail spaces, and industrial and logistics parks, reflecting the city’s expanding urban footprint.
The National Capital Region (NCR) recorded 16 land deals covering approximately 137 acres. Gurugram accounted for four deals spanning nearly 40 acres, while Noida saw eight deals for over 41 acres. Smaller transactions were recorded in Delhi, Greater Noida, and Ghaziabad. The proposed developments include residential, commercial, and mixed-use projects.
Southern markets show selective expansion
Hyderabad witnessed nine land deals covering about 57 acres, all earmarked for residential development. Chennai recorded eight deals spanning nearly 122 acres, largely focused on industrial and logistics parks alongside residential projects.
Interestingly, Kolkata saw no land transactions during 2025, highlighting uneven regional momentum and developer caution in select eastern markets.
Tier 2 and 3 cities gain prominence
One of the most notable trends in 2025 was the growing importance of tier 2 and 3 cities. These markets collectively accounted for at least 16 land deals spanning nearly 2,193 acres, a substantial share of the year’s total land volume.
The proposed developments in these cities include residential projects, plotted developments, mixed-use formats, industrial and logistics parks, and retail spaces. Lower land costs, improving infrastructure, and rising housing demand are encouraging developers to expand beyond traditional metro markets.
A cautious but confident outlook
Experts say the resurgence in land buying reflects a healthier, more sustainable real estate cycle. Developers are prioritising location quality, infrastructure connectivity, and demand visibility over aggressive expansion.
With housing demand holding firm, office leasing gradually improving, and infrastructure investment continuing, land acquisitions are likely to remain selective but steady. The patterns seen in 2025 suggest that developers are positioning themselves for long-term growth rather than short-term gains, laying the groundwork for the next phase of India’s real estate expansion.
