Realtors cash in on growth opportunity in smaller cities
residential real estate market has prompted property developers to actively pursue and conclude transactions for land parcels, and the trend is not limited to metropolitan regions and peripheral locations but is also evident in tier-II and -III cities, too.
Homebuyers' interest in plotted developments has spiked, particularly after the outbreak of Covid-19 pandemic. The buoyant demand for warehousing has also pushed finalisation of land deals higher.
During the 22-month period from January 2022 to October 2023, real estate developers purchased about 3,294 acres of land.
A substantial proportion, or 44.4%, of these land deals was transacted in tiers II and III locations, with 1,461 acres being acquired in 17 land deals, according to a JLL India study.
«The Indian economy is undergoing transformation, and the growth is visible not only in metro cities but also in tier-II cities and towns. We are looking to create wealth for our consumers with land offerings across such towns and cities of 'new India' that have been embraced by seminal infrastructural proliferation, development, and connectivity, making these cities meaningful centres of commerce,» said Samujjwal Ghosh, chief executive of The House of Abhinandan Lodha (HoABL).
Cities such as Nagpur, Palghar, Khalapur, Panipat, Ludhiana and Panchkula have collectively contributed around 75% to the total 1,461 acres of land acquired in tiers II and III locations.
«Strategic land acquisitions by developers in Tier-II and -III cities to enter new markets and leverage the rising demand for quality projects is on the rise.
