MUMBAI: Developers acquired over 3,093 acres of land across 149 transactions valued at Rs 54,818 crore in 2025, a 32% year-on-year increase.
This momentum is expected to unlock approximately 229 million sq. ft. of development over the next two to five years, according to property consultant JLL.
Tier 1 cities attracted 89% of the capital required for land acquisition while accounting for just 52% of the total land area purchased. Meanwhile, Tier Il cities received only 11% of the total investments despite representing 48% of land transactions in terms of area acquired, as per the JLL report.
This disparity highlights the higher land costs in major metros and points to significant growth opportunities in emerging markets as India's real estate landscape continues to evolve. Tier Il cities include Ahmedabad, Amritsar, Aurangabad, Ayodhya, Ballari, Goa, Indore, Lucknow, Mohali, Nagpur, Panchkula, Raipur, Satara and Vadodara.
The strong momentum has continued into 2026, with approximately 900 acres acquired across key markets in Q1 2026, valued at nearly Rs 18,000 crore. Mumbai's MMR recorded the country's largest land deal by value in Q1 2026, with an 11-acre parcel selling for Rs 5,400 crore (approximately Rs 490 crore per acre).
Developing these newly acquired land parcels in 2025 will require an estimated Rs 92,000 crore + in total construction capital, as per JLL's estimate. Of this substantial investment, external financing needs are projected to exceed Rs 52,000 crore over the medium term.
"As traditional banking channels face regulatory constraints and evolving risk appetites, this substantial capital requirement presents compelling opportunities for Alternative Investment Funds (AIF) and private credit providers to deploy innovative, tailored financing solutions that address diverse funding needs across project lifecycles,” said Lata Pillai, Senior Managing Director & Head of Capital Markets, JLL India.
Residential development emerges as the primary growth engine, with developers allocating 78% of acquired land for housing projects, totalling 2,398 acres and requiring an estimated Rs 72,000 crore+ in construction cost.
Individual landowners constitute the backbone of India's developer land acquisition market, accounting for 65% of the total area transacted across 62 deals. Individual landowners drive land sales in several key markets, a trend most pronounced in Chennai at 93% and also leading in Mumbai-MMR, Bengaluru and Pune. In contrast, corporate entities are the principal sellers in Hyderabad, indicating markets where land assets are largely company-held. Delhi-NCR stands out as an outlier, with government bodies being the dominant source of land, accounting for 63% of all transactions.
Ankur Jalan, CEO, Golden Growth Fund, a category II Alternative Investment Fund (AIF) said that with the ability to provide flexible, structured financing solutions across the project lifecycle, AIFs and private credit platforms can bridge critical last-mile and construction funding requirements. As the sector continues to mature and institutionalise, we see a compelling opportunity to deploy capital in well-located, demand-driven projects, generating attractive risk-adjusted returns while supporting the next phase of real estate growth in India, added Jalan.