Property Developers going to Nagpur, Panipat, Ludhiana, and other places
Real estate developers in India are diversifying away from metros and megacities. In the period from January 2022 to October 2023, real estate developers purchased around 3,294 Acres of land in the country. 44.4 Acres were acquired in the Tier 2 and Tier 3 cities, with 1,461 Acres being acquired in 17 separate transactions, according to JLL (Real Estate and Investment Management Company). Real estate developers are now looking to new markets by extending their reach into Tier 2 and Tier 3 cities to initiate projects. The data shows the success of well-known developers in completing numerous land deals in line with increasing customer demand and purchasing power. Buyers in tier 2 and 3 cities want quality homes and demand for such projects.
For example, DLF’s first project in Panipat was sold out in an hour. Godrej Properties’ first phase of Sonipat’s plotted development project sold out in two days. In southern India, the first-time developers introduced their plotted residential projects in cities such as Ambur in Andhra Pradesh, Mahabalipuram in Andlokkore in Tamil Nadu, and Trichy in Karnataka. Buying land to build future supply pipelines In the wake of the phenomenal residential sales in emerging cities, the developers are also buying land to build their future supply pipelines in these emerging markets. Some of the leading developers in these emerging markets are Godrej Properties M3M Eldeco Group Omaxe Group.
It is worth noting that 91.6 % of the land acquired is being used for residential developments with a strong focus on low-rise and plotted residential units as the local population prefers these formats. About 1,015 Acres valued at more than ₹ 3,163 crore have been earmarked for plotted developments. Plotted developments come with all the amenities such as parks, shopping malls, etc. Earlier, people used to stay in their self-built houses as a joint family. Now, people want to be independent and move into their apartments.
