Land deals slowing down? Not everywhere! Bengaluru, Gurugram still booming

The general elections and  heated land prices seem to have dented the appetite for land acquisition for developers and other entities in the second quarter of 2024. The number of land deals closed in the second quarter of 2024 came down to 25 transactions for 325+ acres' area, as per the latest data from Anarock. In contrast, Q1 2024 saw approximately 29 land deals for 721+ acres closed across the country.

Bengaluru topped in the number of land deals. "The city saw nine separate deals for approximately 114 acres closed in Q2 2024. All deals are proposed for residential developments. Gurugram followed, remaining a hot market for land deals in Q2 2024. As many as seven deals for over 77.5 acres were closed here in this period for residential development and agriculture," said Dr Prashant Thakur, Regional Director & Head - Research & Advisory, ANAROCK Group,.

Of the total land deals closed in Q2 2024 (Apr.-June), over 17 for 163+ acres have been proposed for residential developments. Agriculture, mixed-use development, data centers, logistics parks, industrial, and retail saw one deal each.

“While Bengaluru continues to be a hotbed for residential development, Gurugram has also upped its game," says Dr. Thakur. "Demand has been soaring here in the last couple of years, and developers are able to sell units in new projects very quickly post launch. Mumbai, which topped in land deals in the previous quarters, saw just 2 land deals closed in Q2 2024 – one for industrial purposes and the other for retail development.”

Here's a breakdown of the data:

Fewer deals in Q2: There were only 25 land deals closed in Q2 2024, covering roughly 325 acres of land. This is a decrease compared to Q1 2024 which saw 29 deals for over 721 acres.

Bengaluru and Gurugram Lead: Bengaluru remained the top city for land deals with 9 deals for around 114 acres, all for residential projects. 

Gurugram followed closely with 7 deals for over 77.5 acres, with projects planned for residential and agricultural use.

Mumbai Slows Down: Interestingly, Mumbai, which previously dominated land deals, saw only 2 deals in Q2 - one for industrial and one for retail development.

Dominant Residential Focus:  A significant portion (17 deals for over 163 acres) of the land acquired is designated for residential development. This is spread across cities like Gurugram, Bengaluru, Thane, Pune, and Ahmedabad.

Growth in Specific Sectors:

• Agriculture: Gurugram witnessed a single deal for a large agricultural project spanning 18 acres.
• Data Centers: Hyderabad saw a single deal for a data center project on 48 acres.
• Industrial: Mumbai had a single deal for a small industrial project on 3.32 acres.
• Logistic Parks: Chennai closed a single deal for a logistic park project on 27 acres.
• Mixed-Use Development: Pune had a single deal for a mixed-use development project on 11 acres.
• Limited Retail and SRA Activity: Only one deal each was recorded for retail development (Mumbai - 1.2 acres) and residential redevelopment under Slum Rehabilitation Authority (SRA) projects (Thane - 12.2 acres).

Land Deals in H1 2024

On the other hand, land deals data trends for the first half of 2024 are more upbeat. As many as 54 deals for 1,045+ acres were closed in the period across the country. In contrast, approx. 46 deals for 950+ acres were closed in the corresponding period last year (H1 2023).

• Bengaluru and Gurugram closed maximum deals (15 each) for approx. 216 acres and 162 acres, respectively in H1 2024.
• Mumbai saw 5 land deals for approx. 34 acres in the first half this year.
• Hyderabad and Chennai each closed 3 deals for approx. 63.5 acres and 48 acres, respectively.
• Pune, Ahmedabad, Noida & Thane collectively closed 2 land deals each for approx. 103 acres.
• Ghaziabad and Delhi closed one deal each for approx. 62.5 acres and 5 acres, respectively.
• Ayodhya, Jaipur, and Surat saw one deal each closed in H1 2024 for approx. 353 acres collectively.