Surging land acquisitions across India to fuel massive investment in development
This surge in investment reflects growing confidence in the sector, supported by infrastructure advancements, policy reforms, and a steady economic outlook.
The sector is set to witness a massive capital investment of Rs 62,328 crore for the development of land parcels acquired by property developers in the last one year, showed a JLL India study.
This rise in investment follows an aggressive expansion strategy, with developers securing a staggering 2,335 acres of land across 23 cities through 134 transactions. The acquired land is projected to yield around 194 million sq ft of real estate development, spanning residential, commercial, and mixed-use projects.
«These land acquisitions have created a substantial opportunity for financial institutions to provide tailored solutions for real estate developments…Given the regulatory constraints on traditional funding avenues for developers at various project stages, there is a growing demand for innovative and bespoke financing structures,” said Lata Pillai, Senior MD & Head of Capital Markets, India, JLL.
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According to her, this scenario presents a promising landscape for Alternative Investment Funds (AIFs) and private credit is poised to maintain its critical role in fulfilling the sector's financial needs.
The sheer scale of these acquisitions reflects the sector’s growing confidence and long-term outlook, driven by increasing urbanization, infrastructure improvements, and rising demand for quality real estate.
“In 2024, 81% of the land acquired