Land Deals Surge by 45% in Tier II and III Cities from Jan 2022 to Oct 2023: JLL Report

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    A recent report by JLL indicates a substantial increase in real estate transactions within Tier II and III cities, constituting 45% of land deals between January 2022 and October 2023. The study underscores growing homebuyer confidence in these cities, attributed to established real estate developers with a commendable track record, robust execution capabilities, and access to institutional capital.

    During this period, developers finalized 44.4% of land deals, acquiring a total of 1,461 acres through 17 distinct transactions in Tier II and III cities. The overall land acquisition by developers reached 3,294 acres, as per the JLL report.

    This trend of exploring new markets is particularly pronounced in northern and western India. Notably, Panipat, Ludhiana, Nagpur, and Panchkula collectively contributed to 75% of the total land acquisitions, emphasizing the regional concentration of real estate activities.

    Developers in the northern region are exploring cities such as Panipat, Sonipat, Kurukshetra, Panchkula, Lucknow, Jaipur, and Ludhiana. In the western region, national-level players are making their mark in cities like Nagpur, Khalapur, Surat, and Palghar.

    The report also highlights a specific trend in these cities, where developers are focusing on launching plotted developments and low-rise apartments. Over the past 22 months, these transactions for proposed plotted developments have amounted to a staggering value of more than Rs 3,163 crore.

    Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, commented on this trend, stating, “The trend of launching plotted developments and low-rise apartments is specifically prevalent in these cities. In the last 22 months, these land transactions for proposed plotted developments were locked with a value of over Rs 3,163 crore.”

    Buyer interest in Tier II and III cities is on the rise, driven by increasing demand and improved purchasing capacity. Established developers have successfully closed numerous land transactions in response to this demand, leading to the overall success of such developments.

    The report cites examples of swift sales in these cities, including DLF’s first project in Panipat selling out within an hour of its launch and Godrej Properties selling out phase 1 of its plotted development project in Sonipat within two days. In southern India, plotted residential projects have been launched in cities such as Ambur, Mahabalipuram, Coimbatore, Trichy, and Mysuru, further attesting to the expanding footprint of real estate activities in Tier II and III cities.

    Also Read: Southern Cities Dominate with 68% Share in India’s Senior Living Housing Market: JLL Report

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