+
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
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?