India’s real estate sector has recorded a sharp rise in land transactions in the first half of 2025, with developers acquiring over 2,898 acres across 76 deals, according to the latest ANAROCK Property Consultants report. This figure surpasses the total volume of land deals closed in the entire year of 2024, highlighting a bullish outlook among developers across both metros and tier-2 cities.
The value of the land transacted in the first six months of the year stands at ₹30,885 crore, with an estimated development potential of 233 million square feet and a projected revenue potential of ₹1.47 lakh crore, the report revealed. Industry observers say this trend reflects renewed confidence in the property market, a growing appetite for large-scale projects, and long-term strategic planning by developers.
Of the total land deals, 67 transactions accounting for approximately 991 acres occurred in the top seven cities: Mumbai, Bengaluru, Pune, Delhi NCR, Chennai, Hyderabad, and Kolkata. The remaining nine deals, covering a larger area of 1,907+ acres, were located in tier-2 and tier-3 cities, including Ahmedabad, Coimbatore, Amritsar, Indore, Mysuru, and Panipat.
Among metros, the land-constrained Mumbai Metropolitan Region (MMR) topped the list with 24 land deals totaling 433 acres. It was followed by Bengaluru with 15 deals (182 acres) and Pune with 13 deals (214 acres). These cities continue to attract developers owing to high urban density and sustained demand in both the residential and commercial sectors.
Mayank Saksena, MD & CEO of Land Services at ANAROCK Group, noted the shift in strategy post-2021. “The post-pandemic years have witnessed a relentless spree of land buying, indicating the real estate sector’s evolution and maturity. Developers now approach land as a strategic resource, with planning and diversification built into their business models,” he said.
Interestingly, it is not just housing that is driving the demand. Of the 76 deals closed, 54, covering over 1,200 acres, were earmarked for residential development projects, including apartments, villas, plotted layouts, and integrated townships. The remaining include:
- 8 deals (approx. 48 acres) for commercial projects
- 6 deals (approx. 1,034 acres) for mixed-use developments
The emergence of tier-2 and tier-3 cities as major destinations for land investments is being seen as a structural change in the real estate landscape. With rising land costs in metros and increasing urbanisation in smaller towns, developers are looking to new markets to unlock growth. In these smaller cities, larger parcels of land are available at lower costs, with state governments also offering more liberal zoning and faster approval processes.
Infrastructure upgrades, including new highways, airports, and industrial corridors, have further added to the viability of investing in smaller centres. Developers are also betting on rising demand for mid-income housing, logistics parks, and industrial hubs outside the big metros.
“Today’s land deals are no longer speculative. Most developers are entering these transactions with a clearly defined end-use, be it residential, retail, or logistics. That’s a marked shift from the pre-2017 trend of land banking for future appreciation,” Saksena added.
Experts believe that this acceleration in land deals is also driven by institutional funding support, consolidation among top builders, and consumer demand for better-designed projects with sustainable amenities. As India’s urban population continues to rise, securing land early offers developers a competitive edge in delivery timelines and pricing control.
With the second half of 2025 still ahead, the real estate sector appears poised for another record-breaking year. If the current momentum continues, industry analysts expect the total land transacted in 2025 could cross 5,000 acres, cementing it as a landmark year for real estate investment and urban expansion in India.
