Tier 2 cities drive land deals in H1 2025, Coimbatore leads with single largest transaction of 714 acres: Report

Land spanning 2,900 acres worth ₹31,000 crore was sold in 76 deals in H1 2025, with Tier 2 cities leading the shift away from metro-focused investments

Tier 2 cities emerged as major players in India’s land transaction ecosystem in the first half of 2025, with Coimbatore recording the largest single land transaction of 714 acres, followed by Ahmedabad at 590 acres and Amritsar at 520 acres, a report by Anarock said on July 8.

Tier 2 cities emerged as major players in India’s land transaction ecosystem in the first half of 2025, with Coimbatore recording the largest single land transaction of 714 acres. (Photo for representational purposes only) (Pixabay)

Geographically, Anarock said of the 76 land deals in H1 2025, 67 deals for 991 acres took place in the top-seven cities. The remaining nine deals for 1,907 acres were in tier-2 and tier-3 cities like Ahmedabad, Amritsar, Coimbatore, Indore, Mysuru, and Panipat.

Despite broader economic uncertainty due to geopolitical tensions, land buying continued unabated, setting a new record with 76 deals totalling over 2,898 acres across the country. Also,the prominence of tier-2 cities signals a dramatic decentralisation of land investment away from traditional metro-centric strategies.

Among Tier 1 cities, the Mumbai Metropolitan Region (MMR) led in terms of volume, clocking 244 land deals for more than 433 acres, while Bengaluru followed with 15 deals covering 182+ acres, reinforcing sustained interest in top urban hubs alongside rising activity in smaller cities, ANAROCK report titled Land as capital: Decoding India’s land transaction patterns and investment flows said.

Tier 2 cities emerged as major players in India’s land transaction ecosystem in the first half of 2025, with Coimbatore recording the largest single land transaction of 714 acres (HT Graphic)

The total volume of the land transacted so far in 2025 is already 1.15 times the deals volume seen in the whole of 2024, which saw about 133 deals for 2,515 acres concluded, it said.

At least 2,900 acres of land deals, with a market value of ₹31,000 crore, were transacted in the Indian realty market during the first six months of 2025 (H1 2025). The total revenue potential was approximately ₹1.47 lakh crore and the total development potential was 233 mn sq ft, it noted.

"The post-pandemic years from 2021 onwards have seen a relentless spate of land deals. Between 2021 and H1 2025, over 11,858 acres have been transacted in 423 deals across the country for various developments. The scale and sophistication of these deals, which account for a combined development potential of 841 mn sq. ft., underscore the real estate market’s maturation - and the strategic importance of land as a cornerstone resources,” said Mayank Saksena, MD and CEO - Land Services, ANAROCK Group.

“The emergence of tier II/III cities as significant contributors to the national land transaction ecosystem is also noteworthy," said Saksena.

"These markets, once considered peripheral to mainstream real estate activity, now represent an inalienable component of the Indian real estate growth horizon - challenging the historical metro-centric model and inducing a healthier geographic distribution of economic opportunity,” he said.

Land deals in H1 2025 include outright sales and joint development agreements

These deals include both outright transactions as well as joint development agreements between realtors and landowners.

At least 54 separate deals for over 1,200 acres are proposed for residential developments, while eight deals involving 48.41 acres are proposed for commercial projects. Six deals totalling 1,034 acres are proposed for mixed-use development.

Around 537 acres in three separate deals are proposed for industrial & logistics parks, the Anarock report said.