Developers acquire 3,093 acres worth ₹54,818 crore in 2025, led by Tier-1 cities: JLL

India’s real estate sector witnessed a significant surge in land acquisitions in 2025, reflecting strong developer confidence and long-term growth prospects. According to a report by JLL, developers acquired around 3,093 acres of land through 149 transactions, with a total deal value of approximately ₹54,818 crore. This marks a robust 32% year-on-year increase, underlining the sector’s continued momentum despite evolving market dynamics.

A notable trend highlighted in the report is the dominance of Tier-1 cities in terms of capital deployment. While these cities accounted for just over half of the total land area acquired, they attracted nearly 89% of the total investment. This indicates a clear preference among developers for high-value urban markets where demand visibility and pricing power remain strong. At the same time, Tier-2 cities contributed nearly 48% of the land transactions by area, although their share in overall investment remained relatively lower.

The land parcels acquired during the year are expected to unlock nearly 229 million square feet of development potential over the next two to five years. Residential projects continue to lead the pipeline, accounting for close to 78% of the planned developments. This reflects sustained demand for housing across major cities, supported by urbanisation, infrastructure expansion, and improved buyer sentiment.

From a capital perspective, developing these land parcels will require substantial investment, with total construction costs estimated at around ₹92,000 crore. Of this, more than ₹52,000 crore is expected to come from external financing sources such as banks, alternative investment funds, and private equity players. This growing capital requirement is also opening up new opportunities for institutional investors and credit providers.

The report further notes that individual landowners remain the dominant sellers, accounting for a majority of the transactions, particularly in cities like Chennai, Mumbai, Bengaluru, and Pune. Overall, the data points to a structurally strong real estate cycle, supported by increased institutional participation and diversification into emerging asset classes such as industrial parks and data centres.