"JLL Report: 3,294 Acres Acquired for Residential Projects Since January 2022"

In the span from January 2022 to October 2023, real estate developers in the country secured approximately 3,294 acres of land for residential projects, as revealed in a comprehensive report by Jones Lang LaSalle (JLL).

A substantial portion of these acquisitions, totaling 1,461 acres (4.4 percent), unfolded in Tier-II and -III cities through 17 significant deals. The report highlights Panipat, Ludhiana, Nagpur, and Panchkula as key centers, collectively constituting around 75 percent of the total land transacted in these burgeoning cities.

Of the 1,461 acres, a significant 1,339 acres (91.6 percent) are earmarked for proposed residential projects, presenting a development potential of approximately 64 million square feet. The report indicates that transactions for plotted developments are valued at Rs. 3,163 crore.

The success of real estate endeavors in these cities is underscored by notable examples. DLF's inaugural project in Panipat witnessed a sellout within an hour of its launch, while Godrej Properties achieved a two-day sellout for Phase-I of its plotted development project in Sonipat. The southern region saw the introduction of plotted residential projects in Ambur, Mahabalipuram, Coimbatore, Trichy, and Mysuru.

Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, commented on the strategic significance of land acquisitions in Tier-II and -III cities. He stated, “The trend of launching plotted developments and low-rise apartments is specifically prevalent in these cities. In the last 22 months, these land transactions for proposed plotted developments were locked with a value of over Rs. 3,163 crore. The launch of new residential projects is expected to strengthen further through new land acquisitions in strategic locations and growth corridors.” The report emphasizes the rising demand for quality projects and the increasing inclination of developers to tap into emerging markets through strategic land acquisitions.

BS