87 real estate deals signed for 1862 acres of land in FY23 across India

Although the number of deals went up around 50% but the increase in terms of area didn't go up proportionally, which means developers are making large number of deals with smaller area

Around 87 land deals were sealed cumulatively accounting for over 1,862 acres in FY23 across India, indicating a 12.9 per cent increase in terms of land area from previous financial year, according to Anarock data. In FY22, 44 land deals accounting for approximately 1,649 acres were closed.

Although the number of deals went up around 50 per cent from FY22, the increase in terms of area didn't go up proportionally, which means developers are making a large number of deals with smaller areas.

In FY23, approximately 57 separate deals totaling over 951 acres have been planned for residential or plotted developments.

 

At least 76 of the deals finalised in FY23, totaling nearly 1,059 acres, took place in the top seven cities, while the remaining 11 deals, totaling approximately 803 acres, occurred in Tier-2 and Tier-3 cities like Ahmedabad, Kurukshetra, Lucknow, Nagpur, Panchkula, Panipat, Raigad, and Surat.

Anuj Puri, Chairman, Anarock Group says, “With land becoming scarcer amid the unfettered real estate development boom, leading players are pulling out all the stops to secure the best land parcels in key locations. In the last financial year, the number of land deals has risen significantly – from 44 in FY22 to 87 in FY23. However, in terms of area, the increase was just 13 per cent - implying that several smaller plots were closed in FY23.”

Mumbai Metropolitan Region (MMR) experienced the most land deals among the top seven cities, with 25 deals totaling more than 267 acres, followed by National Capital Region (NCR) with 23 deals totaling over 274 acres.

In terms of the total area of land traded among the top seven cities, Chennai came out on top with approximately 292 acres moving hands in nine different deals. MMR had the most land transactions, with 19 acquisitions proposed for residential or plotted complexes totaling around 193 acres, followed by NCR with nine agreements totaling approximately 192 acres, and Chennai with seven unique land sales totaling approximately 194 acres in FY23.

“With residential sales in the top seven cities scaling an all-time high in the last financial year (approx. 380,000 units), large and listed developers have been cashing in on the unrelenting housing boom. With land being the key input commodity for real estate development, these players have been making strategic land investments across prominent micro-markets and quite a few smaller deals took place in the last financial year.” Puri added.

Godrej Properties, Birla Estates, Gaurs Group, Sobha Ltd, Oberoi Realty, Ajmera Realty, Mahindra LifeSpaces, M3M Group, and Gera Developers are among the main developers who purchased land parcels for various developments in FY23.

There were 11 different land-related commercial and retail transactions totaling approximately 46.5 acres. Nine of them, totaling approximately 38 acres, were closed in the NCR; Ahmedabad and Surat each witnessed one land deal.

For data centres in locations like MMR and Pune,three different acquisitions totaling over 83 acres were completed. In MMR and NCR, at least two deals totaling more than 13 acres for warehousing and industrial developments were finalised. Six acquisitions totaling approximately 54.5 acres in the BPO, hospitality, and other yet-to-be-disclosed industries were completed in cities including MMR, Hyderabad, and Chennai.