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Real estate developers acquired nearly 900 acres of land for around INR 18,000 crore during the January–March quarter, reflecting sustained demand for residential and commercial projects, according to JLL India. The momentum follows a record 2025, when over 3,093 acres were transacted across 149 deals worth INR 54,818 crore, marking a 32% annual increase. Activity remained concentrated in metro and tier-II cities, with Mumbai recording the highest-value deal in the recent quarter. Industry executives indicated that while land buying remains strong, project execution will require substantial external funding, estimated at INR 52,000 crore. This has opened opportunities for alternative investment funds and private credit players to address financing gaps amid tighter bank lending conditions.
Real estate developers acquired nearly 900 acres of land valued at around INR 18,000 crore during the January–March quarter, as sustained demand for housing and commercial assets continued to drive land transactions across key markets, according to JLL India. Advertisement
The consultancy noted in the past week that the momentum in land acquisitions has carried forward from a record performance in the previous calendar year. In 2025, developers purchased more than 3,093 acres through 149 transactions, with a total deal value of INR 54,818 crore, reflecting a 32% year-on-year increase. These acquisitions were spread across metro and tier-II cities, indicating broad-based demand.
JLL stated that the first quarter of 2026 maintained this trajectory, with land purchases concentrated in high-demand urban markets. Mumbai recorded the largest transaction by value during the quarter, with an 11-acre parcel transacted at INR 5,400 crore, translating to approximately INR 490 crore per acre.
The data indicates that developers are continuing to build land banks to support upcoming residential and commercial projects, supported by steady demand fundamentals. Industry stakeholders suggested that the scale of acquisitions reflects confidence in medium-term absorption across segments.
Lata Pillai, Senior Managing Director and Head of Capital Markets at JLL India, indicated that the previous year had marked a peak in land acquisition activity, with close to INR 55,000 crore invested across nearly 3,000 acres in 20 major cities. She added that the current pace of transactions signals continuity in developer sentiment and expansion plans.
However, translating these acquisitions into completed projects will require substantial funding. Pillai noted that developers may need around INR 52,000 crore in external financing to execute projects on recently acquired land parcels. She indicated that constraints in traditional bank lending, including regulatory limitations and evolving risk assessments, could limit the availability of conventional funding.
This financing requirement is expected to create opportunities for alternative investment funds (AIFs) and private credit providers. These platforms are increasingly offering structured and flexible capital solutions tailored to different stages of project development, including last-mile and construction financing.
Ankur Jalan, Chief Executive Officer of Golden Growth Fund, a Category II AIF, stated that the pace of land acquisitions reflects sustained developer confidence and a positive demand outlook. He added that the funding gap arising from large-scale project execution may not be fully addressed by traditional lenders alone.
He further indicated that AIFs and private credit platforms are positioned to bridge these gaps by providing customised financing solutions across the project lifecycle, thereby supporting project completion timelines.
The continued strength in land transactions, coupled with evolving financing mechanisms, suggests that India’s real estate sector is maintaining activity levels, with developers actively preparing for future supply pipelines across key urban markets.
Source - PTI
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