Realty Sees Land Deals Rush

The rising land deals in 2023 across India are proving to be a  major driver of real estate, particularly   residential realty . 

Buoyed by growing demand in the post-Covid period across various sectors of Indian real estate, developers and some business entities are making a beeline  to purchase land  parcels across cities. The latest Anarock research indicates that as many as 59 separate land deals for  more than 2018 acres have been closed across the country between January to August 2023 in contrast to about 50 land deals for over 1438 acres  closed during the same period last year across various cities.

According to Anuj Puri, Chairman, Anarock Group, very few of these deals were for large land parcels. The three largest deals were done  in Ahmedabad, for about. 740 acres, and one deal each in Ludhiana and Bengaluru for over 300 acres each. In terms of deal numbers, residential real estate was on top.Of 59 land deals closed in 2023 during January to August period , about  38 deals for more than 283 acres are proposed for residential development across the top 7 cities.Five deals for more than 1,136 acres are earmarked for township projects in cities like Chennai, Ahmedabad and Ludhiana As many as 4 deals for over 62 acres are for mixed-use developments in Noida, Gurugram, Pune and Bengaluru. There are three separate land deals for over 154 acres in plotted developments in cities like Chennai, Raigad and Gurugram .Three deals for approximately  16.5 acres are for commercial development in NCR cities like Delhi, Noida and Gurugram.One large deal of over 300 acres has been earmarked for manufacturing in Bengaluru.

Source: ANAROCK Research

City-wise Analysis

In terms of total land area transacted, Ahmedabad stood out with approx. 740 acres transacted so far this year. At 17 deals, MMR saw the highest number; the total area transacted was just 95+ acres.

Source: ANAROCK Research

• Hyderabad saw 2 separate deals for 18+ acres, accounting for just 1% of the total land transacted between January and August 2023.
• NCR sealed 13 separate transactions accounting for 4% of the total land transacted, for approx. 89.82 acres. This includes 9 deals for a total of 61.6 acres in Gurugram, 3 in Noida for 19+ acres, and one in Delhi for approx. 9 acres. The proposed developments include residential, retail, mixed-use, commercial, and plotted segment.
• Bengaluru saw 8 separate deals for 401+ acres, accounting for 20% of total land transacted, earmarked for manufacturing, residential, and mixed-use.
• Pune saw 5 separate deals for approx. 44 acres, accounting for just 2% of the total land area transacted across cities, proposed for residential and mixed-use development.
• MMR saw the highest number of transactions (17) cumulatively accounting for just 95+ acres, earmarked for residential development.
• Chennai saw 5 deals for approx. 178 acres, earmarked for plotted developments, residential, an IT park, and a township project.
• Ahmedabad closed 3 deals for over 740 acres – accounting for the highest share (37%) of total land transactions in the country
• Kolkata closed 3 land deals for approx. 25 acres.

Source: ANAROCK Research

Amidst  robust demand and sales in residential real estate , the land buying spree by the real estate  developers  may well continue.