Shalimar Corp Limited has acquired an approximately three-acre land parcel in Lucknow for ₹450 crore, marking one of the city’s costliest land transactions and a major deal in India’s tier-2 real estate market.
The acquisition reflects growing developer interest in prime locations across tier-2 cities, where improving infrastructure, expanding business activity and changing homebuyer preferences are supporting demand for premium residential developments. The land was acquired through a government auction and is among the last available parcels in a prime location in Lucknow, according to the company.
Premium Housing Demand Supports Land Acquisition
The transaction comes as developers continue to focus on strategically located land parcels in cities beyond the major metropolitan markets. Homebuyers in tier-2 cities are increasingly seeking planned residential neighbourhoods with quality construction, modern amenities and the potential for long-term property value appreciation.
Khalid Masood, Managing Director of Shalimar Corp, said the company sees a new phase of real estate growth emerging in India’s tier-2 cities, supported by infrastructure development and the expansion of industries and businesses.
The company said that rising land and construction material costs have resulted in adjustments to property prices. However, demand remains strong as buyers are increasingly making purchasing decisions based on lifestyle and living requirements rather than speculation.
Interest from non-resident Indians and professionals looking to invest in their hometowns is also contributing to demand. Traditional homebuyers seeking to upgrade their living conditions continue to form an important part of the market.
₹4,000 Crore Project Launches Planned
Shalimar Corp has launched projects worth ₹6,000 crore over the last three years. During FY 2026-27, the developer plans to launch projects worth ₹4,000 crore.
The company has also entered the Varanasi real estate market, identifying the city as a growth opportunity. Religious and spiritual tourism, along with infrastructure investments, are expected to support real estate development in the city.
Shalimar Corp has delivered more than 60 projects and developed over 21 million square feet of real estate. It is also executing township projects in Lucknow.
Tier-2 Cities Attract Increasing Land Investments
Land acquisition activity in tier-2 and tier-3 cities is drawing greater attention from large and listed developers. According to ANAROCK data, 111 land deals covering approximately 3,000 acres were concluded during FY 2026. Of this, around 520 acres were acquired in tier-2 cities.
Godrej Properties led listed developers in land acquisitions during the period, completing 17 deals across 443.5 acres. Brigade Group followed with eight deals covering nearly 81 acres.
Bengaluru emerged as a major market for listed developers, recording around 17 transactions involving more than 293 acres during FY 2026. Among tier-2 and tier-3 markets, Amritsar recorded two land deals covering 520 acres. Land transactions were also reported in Vadodara, Nagpur, Panipat, Mysore, Raipur and Coimbatore.
Access to Capital Gives Listed Developers an Advantage
The cost of acquiring development land has increased significantly, making access to capital an important advantage. Larger listed developers are better positioned to compete for high-value land parcels because of easier access to institutional funding and more transparent financial structures.
While overall land transaction volumes have shown some moderation, major developers continue to acquire strategically located parcels to support their future project pipelines.
Shalimar Corp’s ₹450 crore acquisition demonstrates the rising value of prime urban land in Lucknow and the growing importance of tier-2 cities in India’s real estate market. With infrastructure expansion and demand for planned premium housing increasing, developers are likely to continue evaluating land opportunities in emerging growth centres across the country.
