Lok Sabha Polls and Rising Land Prices Curb Q2 Land Deals

Land acquisition saw a significant drop in Q2 2024 due to the Lok Sabha elections and increased land prices, with only 25 deals closed compared to 29 in Q1. Bengaluru led with the highest number of transactions, followed by Gurugram.

The Lok Sabha elections and soaring land prices have curtailed the desire for land acquisition among developers and other entities in the second quarter of 2024. According to the latest data from real estate consultancy Anarock, the number of land deals closed in Q2 2024 fell to 25 transactions covering over 325 acres.

In stark contrast, the first quarter of 2024 witnessed around 29 land deals for more than 721 acres across the country. Prashant Thakur, Regional Director and Head of Research and Advisory at ANAROCK Group, highlighted that Bengaluru led in the number of land deals. "The city recorded nine deals for approximately 114 acres in Q2 2024, all earmarked for residential developments. Gurugram followed as a robust market with seven deals for over 77.5 acres aimed at residential and agricultural projects," Thakur noted.

More than 17 out of the total land deals in Q2 2024 were proposed for residential developments. Other sectors like agriculture, mixed-use development, data centers, logistics parks, industrial, and retail recorded one deal each. "Bengaluru remains a hotspot for residential development, while Gurugram has seen increasing demand," added Thakur.

Despite the dip in Q2, the first half of 2024 shows positive trends in land acquisition. A total of 54 deals for over 1,045 acres were closed in the first six months of 2024, compared to 46 deals for more than 950 acres in the same period last year. Mumbai, previously leading in land deals, saw just two transactions in Q2 2024—one for industrial use and the other for retail development.

(With inputs from agencies.)