Land Transactions Surge in 2024: Delhi-NCR Leads

Delhi, No 28, 2024: With a growing demand for housing, the Indian real estate sector has seen developers’ interest in buying land parcels at much greater rates. A trend was observed in the industry with 65% growth in land transactions between January and September 2024 compared to the same period last year, according to a CBRE report.

This trend became visible in the residential segment as the January – September period saw over 1,700 acres of land transacted in metropolitan and peripheral regions. More than 100 deals were concluded, which is a very big step up from around 60 deals during the same period last year. Growth was especially prominent in tier 1 cities like Mumbai, Chennai, Hyderabad, Bengaluru, and Pune, where Delhi-NCR grabbed the maximum deals.

Delhi-NCR captured approximately 32% of the market share. Within the region, Gurgaon stood out with the highest share at 65%, closely followed by Noida and Greater Noida at 20%. The land activity was spread across a diverse range of segments, with residential assets accounting for 61% of the deal volume.

Favorable market sentiments, infrastructural development, and growth in housing demand have supported the increase in land deals across the country. As the Indian economy grows, this optimism has further bolstered ‘developers’ and investors’ confidence in capitalizing on favorable market conditions in real estate and launching new projects.

Sandeep Chhillar, Founder and Chairman, Landmark Group, says, “The sharp increase in land acquisitions in Delhi-NCR is favorable for the real estate sector. The resulting growth can be attributed to various factors from favorable economic scenarios and increased investors’ activity to surged demand and evolving buyers preferences. Catering to the evolving demands, real estate developers are eyeing new markets for land deals and new project launches. The current land deals indicate that the sector will have a healthy supply in the coming year, keeping the market sentiments upbeat.”

With rapid infrastructure development in Delhi-NCR, mainly Gurgaon, Noida, and Greater Noida, vast tracts of land have opened up for earlier inaccessible development due to the lack of connectivity to major economic centers and residential zones. Expressways like Dwarka Expressway and Southern Peripheral Road have significantly reduced travel times; peripheral areas have become more attractive for developers and homebuyers.  
Metro expansions in Gurugram and Noida region have enhanced the accessibility of the region. In addition, the land surrounding the upcoming Jewar Airport is becoming a new investment hotspot, turning the Noida-Greater Noida-Yamuna Expressway (YXP) belt into a burgeoning investment destination.

Ashwani Kumar, Pyramid Infratech, says, “The current spurt of land acquisition bodes well for the future of the real estate market in Delhi-NCR. We believe this is a long-term play into the sought-after luxury housing segment the urban family increasingly chooses. Improved Delhi-NCR infrastructure has made this region more accessible and attractive for development. Backed by great land deals, we anticipate Delhi-NCR to have great supply ahead offering buyers and investors not just homes but a complete living experience.”

Thus, the land transaction surge indicates a massive expansion of the real estate sector that shows no signs of slowing down. As demand for housing increases, developers are making significant investments to meet this demand, underscoring the optimism surrounding the market’s future.

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