Land grab: Realty firms spend ₹90,000 crore on 6,000 acres.

Business

Posted by AI on 2025-03-17 15:53:02 | Last Updated by AI on 2025-07-21 08:11:46

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MUMBAI – Indian real estate witnessed a significant land acquisition spree between 2022 and 2024, with major developers snapping up nearly 6,000 acres for a staggering ₹90,000 crore, signaling a bullish outlook on the sector's future. This aggressive land banking suggests a renewed confidence in the market and anticipates a surge in housing demand in the coming years.

The trend culminated in a particularly active 2024, which saw developers acquire 2,335 acres at a cost of ₹39,742 crore, representing a substantial portion of the overall investment during the three-year period. This indicates an accelerating pace of land acquisition, possibly driven by easing regulatory hurdles, improving economic conditions, and increasing competition among developers to secure prime locations.

While the exact breakdown of land purchases across the 2022-2023 period wasn't available, industry experts suggest that the trend likely gained momentum throughout the three years, culminating in the substantial acquisitions seen in 2024. The acquired land is expected to fuel the development of residential, commercial, and mixed-use projects across major Indian cities.

"The significant investments in land demonstrate the long-term vision of real estate developers," explains Ramesh Swaminathan, a market analyst at PropEquity. "They are betting on sustained growth in housing demand, particularly in Tier-1 and Tier-2 cities, driven by urbanization, rising disposable incomes, and favorable demographics."

The increased land acquisition also raises questions about potential impacts on land prices and housing affordability. Experts warn that while the increased supply of housing units stemming from these acquisitions could potentially moderate prices, the high cost of land acquisition itself could also push prices upwards in certain segments.

The concentration of land purchases in the hands of large developers further raises concerns about market consolidation and its potential impact on smaller players. However, others argue that this consolidation could lead to greater efficiencies and improved project execution.

As the Indian real estate market continues to evolve, the next few years will reveal whether these substantial land acquisitions translate into a boom in housing supply and meet the growing demand, or exacerbate existing affordability challenges.

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