Realty firms buy land parcels worth Rs 5,000 crore in tier II, tier III cities since January 22: JLL India

Real estate developers have acquired 1,461 acres of land in Tier II and III cities for nearly Rs 5,000 crore since January last year to expand their businesses, according to JLL India. The bulk of the land parcels acquired in these cities are meant for plotted development.

Around 3,294 acres of land were acquired by real estate developers in the country between January 2022 and October 2023, real estate consultant JLL India said in a statement.

A substantial proportion (44.4 per cent) of these land deals were transacted in Tier 2 and 3 cities.

As per the JLL data, the total number of land deals from January 2022 to October 2023 period in Tier II and III cities was 17 involving 1,461 acres. The cumulative value of these land transactions was Rs 4,918 crore.

"Established real estate developers are now targeting new markets, by entering Tier 2 and 3 cities in the country, to launch projects," the consultant said.

In the north, developers are venturing into 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.

Out of the total 1,461 acres acquired in tier II and III cities, JLL mentioned that nearly 92 per cent of the land acquired (1,339 acres) is for proposed residential developments, which include plots, group housing and townships.

"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 Rs 3,163 crore," JLL said.