Realtors plan to use most land parcels for housing projects
housing market segment is prompting more real estate developers to opt and propose residential developments on their land parcels that are already part of their land banks or are being acquired now. Most land parcels acquired by the developers across the country in the last 18 months have been added to their residential development pipeline and is an indication of augmented capex utilisation aimed at clocking higher sales in the upcoming quarters.
Out of the total 2,181 acres of land transacted between January 2022 and May 2023, around 84% or 1,822 acres has been allocated for proposed residential developments, showed data from JLL India. «Indian real estate sector is on an upswing with domestic consumption propelling the demand for the long run in the mid and luxury segment,» said Niranjan Hiranandani, national vice-chairman, Naredco.
«Developers are geared for an active land acquisition across metro and tier cities, capitalising on last-mile connectivity. The new infrastructure projects will become the fulcrum of economic growth corridors and developers are building robust project pipelines in demand anticipation.» Driven by unprecedented sales, new residential projects are expected to gain further strength through strategic land acquisitions in key locations and growth corridors.
In the second half of 2023, the number of launches is expected to rise as developers continue to expand their land banks, capitalising on expected interest rate moderation, growing housing demand, and support from institutional funding agencies. However, experts are of the view that developers with execution and delivery track record are expected to get an advantage in terms of demand and sales conversion as homebuyers would prefer their
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