Land Deals Plummet 57% in Q1 FY25: Anarock Report
Real Estate

Land Deals Plummet 57% in Q1 FY25: Anarock Report

Land transactions in India's real estate sector saw a sharp decline of 57% in the first quarter of FY25, according to a report by Anarock. The total land acquired was 325 acres, compared to 754 acres in the same period last year.

Several factors contributed to this downturn, including economic uncertainty and cautious investment sentiment. Developers are hesitating to commit to large-scale acquisitions due to fluctuating market conditions and regulatory changes.

The report highlights that major cities like Mumbai, Delhi-NCR, and Bengaluru experienced significant drops in land deals. Developers are focusing on completing ongoing projects rather than expanding land banks. This shift in strategy aims to mitigate risks associated with unsold inventory and financial liabilities.

The slowdown is also attributed to rising interest rates, which have increased borrowing costs for developers, impacting their ability to finance new land purchases. Additionally, the real estate sector is facing challenges from policy reforms aimed at increasing transparency and accountability.

Despite the overall decline, certain regions, such as Tier 2 and Tier 3 cities, showed resilience with moderate activity levels. These areas are attracting interest due to affordable land prices and emerging growth potential.

Analysts suggest that once economic conditions stabilise and confidence returns, the sector may witness a gradual recovery. Developers are advised to adopt innovative strategies and explore alternative funding sources to navigate the current landscape.

The report concludes that while the immediate outlook remains cautious, long-term prospects for India's real estate market continue to be positive.

Land transactions in India's real estate sector saw a sharp decline of 57% in the first quarter of FY25, according to a report by Anarock. The total land acquired was 325 acres, compared to 754 acres in the same period last year. Several factors contributed to this downturn, including economic uncertainty and cautious investment sentiment. Developers are hesitating to commit to large-scale acquisitions due to fluctuating market conditions and regulatory changes. The report highlights that major cities like Mumbai, Delhi-NCR, and Bengaluru experienced significant drops in land deals. Developers are focusing on completing ongoing projects rather than expanding land banks. This shift in strategy aims to mitigate risks associated with unsold inventory and financial liabilities. The slowdown is also attributed to rising interest rates, which have increased borrowing costs for developers, impacting their ability to finance new land purchases. Additionally, the real estate sector is facing challenges from policy reforms aimed at increasing transparency and accountability. Despite the overall decline, certain regions, such as Tier 2 and Tier 3 cities, showed resilience with moderate activity levels. These areas are attracting interest due to affordable land prices and emerging growth potential. Analysts suggest that once economic conditions stabilise and confidence returns, the sector may witness a gradual recovery. Developers are advised to adopt innovative strategies and explore alternative funding sources to navigate the current landscape. The report concludes that while the immediate outlook remains cautious, long-term prospects for India's real estate market continue to be positive.

Next Story
Building Material

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Next Story
Building Material

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Next Story
Building Material

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App