India’s real estate land deals surge 32% to Rs. 54,818 crore in 2025

New Delhi— India’s real estate sector saw a sharp rise in land acquisitions in 2025, with total deal value jumping 32% year-on-year to ?54,818 crore, according to a report by JLL.

Developers acquired around 3,093 acres through 149 transactions during the year. This land bank is expected to translate into nearly 229 million square feet of development over the next two to five years, indicating strong confidence in housing and commercial demand.

The data shows a clear tilt towards metro markets. Tier I cities attracted 89% of the total investment, even though they accounted for just over half of the land acquired. In contrast, Tier II cities made up 48% of transactions but drew only 11% of the capital, largely due to lower land prices and their emerging status.

The trend has carried into 2026 as well. In the first quarter alone, about 900 acres of land deals were recorded across key markets, valued at roughly ?18,000 crore.

Among major transactions, the Mumbai Metropolitan Region stood out with the biggest deal—an 11-acre land parcel valued at ?5,400 crore.

Developing these newly acquired parcels will require significant capital. The report estimates total construction costs at over ?92,000 crore, with external funding needs likely exceeding ?52,000 crore. This is expected to attract greater participation from alternative investment funds, private credit players, and institutional investors.

Residential projects continue to dominate the sector, accounting for 78% of land allocation and about 76% of funding requirements, with estimated construction costs crossing ?72,000 crore. Office developments, meanwhile, are projected to require around ?8,700 crore, reflecting steady demand for premium Grade A workspaces.

On the supply side, individual landowners remained the biggest sellers, contributing to 65% of transactions. While cities like Chennai, Mumbai, Bengaluru, and Pune saw more deals from individual sellers, corporate entities were more active in Hyderabad, and government bodies played a larger role in Delhi-NCR.

The report also highlighted growing developer interest in emerging segments such as data centres, logistics parks, and other alternative real estate assets, signaling diversification beyond traditional residential and office spaces.

With inputs from IANS