Indian Property Developers Invest ₹90,000 Crore in Nearly 6,000 Acres During 2022-24 Land Acquisition Spree

According to data released by JLL India, the Indian real estate sector experienced a significant expansion wave as developers acquired approximately 5,885 acres of land valued at ₹90,057 crore between 2022 and 2024. This aggressive land banking strategy indicates strong developer confidence in long-term housing demand and a strategic move to secure inventory ahead of anticipated supply constraints.

Annual Acquisition Trends Show Consistent Growth Momentum

The three-year period witnessed a steady upward trajectory in land acquisition in India. In 2022, developers purchased around 1,603 acres worth approximately ₹18,112 crore. The following year saw acquisitions rise to 1,947 acres totaling ₹32,203 crore. By 2024, land purchases jumped to 2,335 acres with a valuation of ₹39,742 crore, reflecting developers' urgency to build substantial land reserves.

Residential Development Dominates Land Use Strategy

The sectoral analysis revealed that residential projects emerged as the primary driver of land acquisitions. Approximately 81% of the land acquired in 2024 was earmarked for residential development, underscoring housing demand as the dominant force shaping developer strategies. This trend aligns with India's growing urban population and the sustained appetite for home sales in India.

Metro Cities Lead Acquisition Activity While Tier-II Cities Gain Traction

Tier-I cities including Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Chennai, Kolkata, and Pune accounted for approximately 72% of land acquisitions in 2024. However, emerging markets demonstrated growing appeal, with Tier-II and Tier-III cities capturing a 28% share, amounting to roughly 662 acres. This geographic diversification suggests developers are increasingly looking beyond established metropolitan hubs for expansion opportunities. The rise of smaller cities is reshaping India's real estate landscape significantly.

Development Potential Unlocked Across Multiple Formats

The land parcels acquired in 2024 alone are projected to unlock development potential of approximately 194 million square feet of real estate across residential and mixed-use formats. This substantial pipeline suggests a multi-year execution cycle rather than short-term opportunistic investments, with major developers launching significant residential projects worth thousands of crores.

Strategic Implications for Market Dynamics

Industry observers noted that these acquisitions indicate developers are banking on long lead times and multi-year execution cycles. With prime land becoming increasingly scarce and costs rising, securing land parcels early helps developers lock in input advantages and maintain pricing leverage. Several prominent developers have made strategic moves, such as Prestige Estates acquiring prime land in Pune and Godrej Properties securing strategic parcels in Gurugram.

The regional diversification toward emerging cities demonstrates shifting confidence in more balanced growth across geographies. However, execution challenges including permitting, infrastructure development, and financing will likely differentiate successful developers from others as this land bank converts into built inventory. The banking sector's increased participation in real estate financing also reflects the sector's growing investment appeal.

Disclaimer: This news article is based on information sourced from third-party reports and data. While efforts have been made to ensure accuracy, readers are advised to verify details independently before making any property investment decisions. Market conditions, prices, and development timelines are subject to change.