2022 Witnesses Multiple Transactions As The Land Market in India Continues to Boom

The Indian property market is seeing unprecedented growth. In recent years, there has been a rise in the volume of real estate transactions in several regions of the country. Developers in India have a voracious thirst for land since they are seeing increased sales of their existing projects and a clear need for new construction, both in the residential and commercial sectors.

For this reason, it is not surprising that 18 land deals involving more than 350 acres were completed in 2022. Most of the lots will be used for housing projects in various cities throughout India.

According to data compiled by the nation's top real estate firms, since the beginning of 2022, at least 28 individual land sales have been closed, covering a total area of over 1,237 acres. At least 351 acres, or 18 transactions, of the total land exchanged are intended for use in numerous residential developments in different cities.

At least three transactions are planned for data centres totaling over 115 acres, while two transactions are proposed for logistics and warehousing projects totaling over 63 acres. Over 108 acres are the subject of at least four transactions related to mixed-use projects. Several important takeaways are as follows:

Land sales in Hyderabad were robust throughout the time, with five different agreements totaling 715 acres accounting for more than 59% of the total land sold since the beginning of the year;

A total of 140 acres in Bengaluru were sold in three different transactions with the intent of building homes, commercial space, and warehouses.

Five distinct agreements were closed by NCR, totaling around 106.3 acres (9%) of the total land sales during this time period. This comprises one transaction in Delhi, one in Faridabad, and one in Noida, for a total of 91 acres in Gurugram. Included in the planned construction are residential neighbourhoods, commercial districts, and warehouses;

Five transactions of more than 91.1 acres of land were recorded in Pune, representing almost 7% of the total land area sold in all of India. All of these are slated for future residential construction;

Land-starved Five transactions totaling 54.85 acres were recorded at MMR, all for residential construction.

In Chennai, one purchase was made on 5.5 acres for a projected mixed-use project;

Ahmedabad (two agreements for over six acres) and Nagpur (one sale for over 58 acres) were the two Tier-II and III cities with the largest land deals (one deal for over 50 acres).

The number of agreements has quadrupled from H1 2021 to H1 2022, going from 14 to 28.

As was predicted, residential construction remains the primary emphasis owing to the high housing demand, which has lost some steam due to the rises in interest rates and property prices. However, these two variables have not yet translated into forward momentum, according to real estate expert Narayan Subramanian.

After the Covid-19 outbreak, several well-capitalized real estate developers and other corporations focused their attention on land and closed acquisitions throughout the first five months of 2022.