Real Estate Developers Invest in Tier 2 and 3 Cities
Since January 2022, real estate developers in India have invested approximately Rs 5,000 crore to acquire 1,461 acres of land in Tier 2 and 3 cities, according to a report by JLL India. These acquisitions aim to expand their businesses and develop new projects in these regions.
Land Acquisition Details
Between January 2022 and October 2023, real estate developers across the country purchased around 3,294 acres of land, as reported by JLL India. Within this period, 17 land deals totaling 1,461 acres were executed in Tier 2 and 3 cities, with a combined value of approximately Rs 4,918 crore.
Expansion into Tier 2 and 3 Cities
The report highlights that well-known real estate developers are venturing into new markets by entering Tier 2 and 3 cities across India. This includes northern cities like Panipat, Sonipat, Kurukshetra, Panchkula, Lucknow, Jaipur, and Ludhiana, and western cities such as Nagpur, Khalapur, Surat, and Palghar, where national players are also active.
Planned Developments
JLL India notes that approximately 92% of the 1,339 acres of land acquired in Tier 2 and 3 cities are earmarked for planned residential developments. These developments include townships, group housing, and plots. Developers in these cities typically focus on low-rise and plotted developments, as residents are accustomed to such living arrangements. Notably, 1,015 acres of land valued at over Rs 3,163 crore have been set aside for planned developments.