MMR's Unprecedented Land Boom | A Record-Breaking Year for Real Estate in 2024

In 2024, the Mumbai Metropolitan Region (MMR) became the epicenter of India's real estate expansion, witnessing an unprecedented surge in land acquisitions. With developers securing a staggering 407 acres across 19 high-value transactions, MMR emerged as the leader in India's real estate boom. This marked a remarkable 41% increase from the previous year's 288.9 acres, as highlighted in a recent report by JLL India.

The Rise of Emerging Micro-Markets

The most significant deals were concentrated in emerging micro-markets such as Khalapur, Palghar, and Khopoli. Developers increasingly sought large single-plot acquisitions, with multiple transactions exceeding 50 acres. As a result, the per-acre cost in MMR surged dramatically, rising from approximately ₹11 crore in 2022 to ₹17 crore in 2024.

Big Players Driving the Expansion

Prominent developers such as Birla Estates, K Raheja Corp, and Mahindra & Mahindra spearheaded this acquisition spree. Notable transactions included:

• Birla Estates' purchase of Hindalco’s 24.5-acre plot in Thane’s Kalwa area for ₹537.42 crore.
• The acquisition of a 70.92-acre land parcel in Boisar for ₹104.32 crore.
• K Raheja Corp Real Estate securing a 5.75-acre plot in Kandivali East’s Ashok Nagar for ₹466 crore in December 2024.
• In July 2024, Mahindra & Mahindra sold a 20.5-acre plot in Kandivali’s Akurli area to Pune-based Blueprintify Properties for ₹210 crore.

Impact on Property Prices

The rapid escalation in land prices is expected to have a cascading effect on the real estate market. Industry experts predict that homebuyers will soon face increased property prices as developers factor in higher land acquisition costs, inflation-driven hikes in construction expenses, and rising labour wages.

A Nationwide Land-Buying Spree

Beyond MMR, the JLL report indicated a broader national trend, with developers acquiring 2,335 acres through 134 transactions across 23 major cities. These deals, collectively valued at ₹39,742 crore, hold the potential to create 194 million sq. ft of real estate.

While Tier I cities dominated with 72% of total transactions, a notable 28% shift occurred towards Tier II and III cities. Unexpected hotspots such as Nagpur, Varanasi, Indore, Vrindavan, and Ludhiana saw an uptick in acquisitions, underscoring a growing demand for real estate investment in emerging regions.

Strategic Land Banking for Future Projects

Developers continue expanding their land banks to fuel future projects. “We completed four projects last year and immediately replaced them with four new acquisitions,” said Amit Jain, chairman and managing director of Arkade Developers. In 2024, Arkade Developers acquired four acres at Filmistan in Goregaon West to develop premium 3 and 4 BHK residences.

NCR’s High Transaction Volume

While MMR led in total land area acquired, the National Capital Region (NCR) recorded the highest number of transactions, closing 36 deals in 2024. Within NCR:

• Gurugram emerged as the most active market with 21 transactions.
• Noida followed closely with 14 transactions.
• Ghaziabad saw one major deal.

As developers continue expanding their footprints, India's real estate market is poised for dynamic growth, driven by strategic land investments and increasing demand in both metropolitan hubs and emerging cities.