Coimbatore Leads Tier-2 Land Market with Record 714-Acre Deal
Coimbatore has established itself as a key player in tier-2 city real estate by leading land transactions in the first half of 2025. The city made headlines with a massive acquisition of 714 acres, marking the largest single land deal in tier-2 India during this period. This deal was part of a total ₹31,000 crore worth of real estate transactions spread across 76 deals in various urban centers.
The Size of the Deal
The 714-acre acquisition includes the renowned Kovai Hills project, now called G Square Seven Hills, bought by Chennai-based G Square Group for ₹707 crore. This project aims to create a state-of-the-art integrated township with residential, commercial, and IT infrastructure.
- Phase 1: Covers 406 acres with over 3,127 premium residential plots approved by DTCP and RERA.
- Remaining 308 acres: Set aside for joint ventures featuring villas, apartments, IT infrastructure, business parks, malls, and multiplexes.
Why Coimbatore? Growth Drivers and Investor Appeal
Several factors contribute to Coimbatore’s rise:
- Strategic Location: Located near the Western Ghats and Palakkad Gap, offering scenic city views.
- Economic Expansion: Growth in industries, IT, automotive sectors, and improved infrastructure including metro projects and airport expansions.
- Lifestyle Advantages: Cooler climate, top educational institutions, world-class healthcare, and a growing focus on luxury living.
Bala Ramajeyam, founder and managing director of G Square Group, says this acquisition reflects Coimbatore’s rapid economic growth and strong investor confidence. His firm’s open invitation to joint venture partners aims to boost commercial and residential growth in this large township.
Tier-2 Cities Shaping India’s Land Market
The record-breaking deal in Coimbatore shows a broader trend: tier-2 cities are becoming major real estate investment hotspots. A recent Anarock report shows:
| City | Largest Single Deal (Acres) |
|---|---|
| Coimbatore | 714 |
| Ahmedabad | 590 |
| Amritsar | 520 |
Tier-2 and tier-3 cities like Mysuru, Indore, and Panipat accounted for 1,907 acres across 9 deals, indicating a significant shift away from metro-centric land acquisitions.
What This Means for Real Estate
- Decentralization of Investment: Investors are diversifying, seeing value outside major metros.
- Rising Land Prices: Upgrade infrastructure boost property demand for townships and mixed-use developments.
- Opportunities for Stakeholders: From developers to local landowners who can keep partial holdings for future appreciation.
Sales in tier-2 cities reflect growing urbanization and a shift in buyer preferences, with affordability combined with luxury and convenience driving demand.
Conclusion
Coimbatore’s record-breaking 714-acre land acquisition places it at the top of tier-2 city real estate markets in India. Supported by strong economic fundamentals and strategic planning by developers like G Square Group, the city shows how tier-2 hubs are reshaping India’s real estate investment landscape, promising substantial growth and diversified opportunities for years to come.