101+ land deals closed in FY24: Is residential segment the primary catalyst?

Residential sector drives land deals: The realty market of the country witnessed a notable surge in land deals, primarily fuelled by the thriving residential segment. Approximately 101 separate land deals were finalised, covering an expansive total area of nearly 2,989 acres across the country. This represents a substantial increase from the previous fiscal year, which recorded 88 land deals spanning approximately 1,886 acres, according to a report by Anarock.

Notably, the top 7 cities emerged as hotspots for real estate investments, witnessing over 83 land deals encompassing about 1,135 acres. Concurrently, tier 2 and 3 cities such as Ahmedabad, Ayodhya, Jaipur, Nagpur, Mysuru, Ludhiana, and Surat also experienced a surge in land acquisitions, accounting for 18 deals spanning over 1,853 acres.

NCR leads land deals

Amongst the top cities, the National Capital Region (NCR) led the pack with 29 land deals covering 313+ acres, followed closely by the Mumbai Metropolitan Region (MMR) with 19 deals spanning approximately 157+ acres. Bengaluru, however, emerged as the city with the largest total land area transacted, with 14 deals amounting to 490+ acres.

The surge in land transactions is paralleled by the booming residential sales, which reached a historic peak of approximately 4.93 lakh units across the top 7 cities in FY2024. Large and listed developers capitalised on this demand, driving significant land acquisitions across prominent urban micro-markets.

Diverse projects sprout from land deals

Proposed developments stemming from these land deals encompass a diverse array of projects, including residential, commercial, retail, industrial, and logistics ventures. Approximately 80 separate land deals, spanning approximately 2,252 acres, are earmarked for proposed residential, plotted development, and township projects. Notable developments include residential deals in Pune, Bengaluru, MMR, Hyderabad, NCR, Chennai, Mysuru, Ayodhya, and Jaipur, as well as township projects slated in Ahmedabad, Bengaluru, Thane, Ludhiana, and Ghaziabad.

Commercial and retail sectors also witnessed four separate deals spanning over 42 acres. Mixed-use developments, industrial parks, IT parks, and logistics parks further contributed to real estate investments across various cities.

Who's shaping tomorrow's skylines?

Key players driving these developments include Godrej Properties, Eldeco Group, Adani Realty, Signature Global, Oberoi Realty, DLF India, Prestige Group, K Raheja Corp, and Brigade Group, amongst others.

In the fiscal year 2024, several notable land deals unfolded across various cities in India. In the first quarter, ESR India acquired 38 acres in Sanand, Gujarat, for industrial development, while Birla Estates secured 28.6 acres in Bengaluru for residential purposes. Additionally, Foxconn made a substantial investment in Bengaluru, acquiring 300 acres for manufacturing facilities. K Raheja Corp made a move in Mumbai, purchasing 4 acres for residential development.

Moving into the second quarter, Prestige Group acquired 2.3 acres in Mumbai for residential purposes, while Godrej Properties invested in 7.91 acres in Gurugram for residential development. ArvindSmartspace initiated a large-scale project in Ahmedabad with the acquisition of 204 acres for a township project, and UK's Malhotra group made a significant investment in Ludhiana, acquiring 300 acres for another township project.

In the third quarter, Eldeco Group invested in 8.9 acres in Greater Noida for residential development, while Greenscape IT Park acquired 4 acres in Navi Mumbai for an IT park. ESR India expanded its footprint in Nagpur with the acquisition of 58 acres for a logistic park, and Mahindra Lifespaces secured 5.38 acres in Pune for residential purposes.

As the fiscal year progressed into the fourth quarter, DLF Homes Developers made a notable investment in Gurugram, acquiring 29 acres for residential development. Lodha Group ventured into Ayodhya with the acquisition of 51 acres for residential projects, while Brigade Group expanded its presence in Chennai with the acquisition of 16 acres for a mix of residential and hospitality developments. Signature Global also made a move in Gurugram, acquiring 20.32 acres for residential purposes.