India’s real estate sector underwent a significant transformation in 2024, with an estimated Rs 62,000 crore required to develop newly acquired land, according to JLL. The year saw a record-breaking surge in land transactions, with developers securing 2,335 acres across 23 cities, amounting to Rs 39,742 crore. This land could add 194 million sq. ft. of real estate development, primarily in the residential sector.

Tier I cities dominated the acquisitions, accounting for 72% of land purchases. However, a noticeable shift towards Tier II and III cities emerged, with smaller urban centres like Nagpur, Varanasi, Indore, and Ludhiana witnessing increased real estate activity. These cities collectively accounted for 28% of land acquisitions, signalling growing developer interest beyond major metropolitan areas.

“In 2024, 81% of the land acquired by developers was earmarked for residential projects, translating into a development potential of 158 million sq. ft.,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. The combination of strong homebuyer demand and favourable fiscal policies, including a recent rate cut by the Reserve Bank of India, is expected to sustain growth in the residential sector.

Among major urban centres, the Mumbai Metropolitan Region (MMR) led in the total land area acquired, with 407 acres transacted across 19 deals, a 41% increase from the previous year. However, the National Capital Region (NCR) recorded the highest number of land deals, with 36 transactions—most of which were concentrated in Gurugram and Noida.

JLL’s analysis also highlighted a shift in financing strategies for developers. “The year 2024 witnessed the highest land acquisitions by developers in the last three years, creating a substantial opportunity for financial institutions to provide tailored funding solutions,” said Lata Pillai, Senior MD and Head of Capital Markets, India, JLL. Given regulatory challenges around traditional funding, private credit and Alternative Investment Funds (AIFs) are expected to be crucial in financing these developments.

With developers strategically expanding their land banks in established and emerging markets, India’s real estate landscape is set for a dynamic evolution. While top-tier cities will remain primary investment hubs, the growing prominence of smaller urban centres marks a broader shift towards geographically diversified real estate development.