Real estate developers have acquired 1,361 acres across seven major cities since July last year to expand their business while they partnered with landowners for joint development of 380 acres of land parcels, according to property consultant Anarock.
Many developers and entities closed around 45 separate land deals, including outright purchases and joint developments, totaling around 1,757 acres across the top 7 cities between July 2020 and November 2021.
Out of the total 45 land deals, at least 10 deals spread over 380 acres were on a revenue-sharing basis (including joint development agreements and joint ventures) while one deal of approximately 16 acres was on lease on an annual rental basis.
The remaining 34 deals spanning over 1,361 acres were outright land deals, Anarock said on Monday.
“The last 7-8 months before Covid-19 (March 2020) saw limited land deals as the real estate industry was grappling with liquidity issues at the time. Then Covid-19 brought the sector to a virtual standstill for 3-4 months,” said Santhosh Kumar, vice-chairman – ANAROCK Group.
“However, from Q3 2020, activity resumed and several landowners who previously held fast to their land put their holdings up for sale. Resultantly, some prominent deals took place in the last year, at more or less the same price points as the previous year. Many developers with the financial wherewithal saw this period as opportune to secure good land parcels in key micro-markets across the top 7 cities,” he added.
The consultant said the maximum deals were for the development of residential properties.