India Real Estate Land Deals Surge 32% to Rs 54,818 Crore in 2025

The report by JLL also said the acquired land is expected to unlock nearly 229 million square feet of development over the next two to five years, reflecting strong developer confidence and sustained demand.

It highlighted a skewed investment pattern, with Tier I cities accounting for 89 per cent of total capital deployed despite representing only 52 per cent of land acquired.

On the other hand, Tier II cities accounted for 48 per cent of land transactions but attracted just 11 per cent of investments which indicates lower land costs and emerging growth opportunities.

The momentum has continued into 2026, with around 900 acres acquired in Q1 across key markets, valued at nearly Rs 18,000 crore.

The report also stated that the Mumbai Metropolitan Region recorded the largest deal, with an 11-acre parcel transacted for Rs 5,400 crore.

Developing these land parcels will require over Rs 92,000 crore in construction capital, with external funding needs estimated to exceed Rs 52,000 crore.

The report noted that this would likely drive increased participation from Alternative Investment Funds (AIFs), private credit providers and institutional investors.

Tier I cities are expected to absorb nearly 89 per cent of the capital required for upcoming developments due to higher project costs and premium real estate demand in major metros.

Moreover, residential development has remained the primary growth driver, accounting for 78 per cent of land allocation and around 76 per cent of total funding requirements, with an estimated construction cost exceeding Rs 72,000 crore.

While office development has a projected capital requirement of about Rs 8,700 crore, suggesting continued demand for Grade A office spaces.

The report also noted that individual landowners dominated the supply side, accounting for 65 per cent of total transactions.

While individual sellers were dominant in cities like Chennai, Mumbai, Bengaluru and Pune, corporate entities led in Hyderabad, and government bodies accounted for a majority of transactions in Delhi-NCR.

In the industrial and emerging asset segments, developers are increasingly exploring opportunities in data centres, logistics parks and other alternative real estate classes.

- IANS