Suburban land demand soars amid rising costs in cities

Naugaon and Hapur in NCR, Khopoli and Karjat in Maharashtra and Chikkaballapur and Channapatna in Karnataka have emerged as the new destinations for affordable horizontal development where developers are selling plots or farmland.

As the real estate in metro cities is becoming expensive, buyers are moving to new destinations within driving distance of the cities.

“We are seeing this trend pan-India as land in cities is getting expensive. Construction cost has also gone up, which is why developers are focusing on horizontal development. These projects are doing well as buyers with a budget of Rs 50 lakh to Rs 2 crore are not able to buy anything in the city,” said Shauzab Kazmi, director at real estate consultancy Moneytree Realty.


Bengaluru-based startup Greenlakes, which has completed a 100-acre farmland project near Bengaluru, is executing another project after the first one received a good response.

“While post Covid, the demand was mostly from corporates, who were looking to work from a remote location, now people are looking to stay away from city’s crowd for at least a few days of the month. Many organised players are also now exploring the segment with demand coming from both luxury and mid segment,” said Almas Johari, CEO, Greenlakes.

According to Amit Agarwal, founder and MD of real estate firm 2A Company, locations in Hapur are also in demand due to proximity to the highway that connects Delhi.

Aranyaka, an NCR-based firm is developing a farmland project in Naugaon in Rajasthan, located 1-1.5 hours from Delhi and Gurgaon via the Delhi-Mumbai Expressway.

With a portfolio of four projects, the firm is betting on second homes within driving distance of cities.

Realty developer Central Park has also acquired 120 acres in Naugaon for a wellness-focused farmhouse project.

NeoLiv, a residential investment and development platform, has entered into a management agreement for developing 47 acres of prime land in Khopoli, Maharashtra, while Godrej Properties (GPL) has acquired an about 90-acre land parcel in Khalapur in Raigad.

The segment is also drawing the attention of institutional investors as farmlands and resort properties are being rebranded as second-home properties to meet the proliferating demand.

Infrastructure projects like the Yamuna Motorway and the recently opened Mumbai Expressway help buyers reach farmhouses within an hour, even though the project is located far away from the downtown. More developers are now coming up with farmland projects where they are developing common facilities and helping buyers maintain the land as well.

The Haryana government recently came up with a policy for the planned development of low-density eco-friendly colonies, while the Delhi government is also expected to come up with a similar policy in the Master Plan 2041.

In addition, multiple developers are now coming up with projects offering not only homes but also space to grow vegetables and, in some cases, locally managed animal products such as dairy, fish and poultry as well.

Experts said the idea behind such townships is to ensure residents enjoy the perfect blend of city life and the advantages of “country” life.

Building urban communities is unlike typical real estate investments, where the project value is mainly derived from the speculative nature of land prices and developments that take place around the project.

Some recent reports indicated that nearly 65% of urban Indian homebuyers now consider environmental quality, including air quality index (AQI), as a critical factor in their property selection. This trend is further visible in the rising demand for residences with pre-installed air purification systems.

In cities like Bengaluru, Hyderabad, Pune and the periphery of Delhi-NCR, properties with enhanced AQI control and green certifications are being prioritised, especially by millennial homebuyers and working professionals.

Developers are increasingly addressing this demand by integrating air quality management and pollution-mitigating green plantations into new developments.