Land acquired in last five years offer 1,400 million sq ft of potential development

New Delhi: Indian real estate sector is all set for a major growth as land transacted between 2021 and Q1 2026 represents nearly 1,400 million sq. ft. of potential built-up area.

This translates into an estimated USD 176 billion (Rs 16.67 lakh crore) of future revenue potential- nearly 22 times the revenue generated by India’s top ten listed real estate developers combined in FY26.

According to Cushman & Wakefield data, residential projects account for the largest share of this potential at 559-768 MSF(55%), followed by industrial and logistics developments at 205-225 MSF (16%). Office developments could contribute 109-179 MSF(13%), while data centre and retail assets carry development potential of approximately 113-124 MSF and 8-26 MSF, respectively.


“The land being assembled today is, in effect, a forward order book for the next decade of growth, and it reinforces our conviction that Indian real estate is entering its most durable and investable phase yet,” said Anshul Jain, Chief Executive – India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield.

As per the data, 18,158 acres transacted across 880 deals in 33 cities between 2021 and Q1 2026.

Annual transacted acreage consistently rose from 813 acres in 2021 to 6,181 acres in 2025, growing at a CAGR of approximately 66% over the period. Momentum remained strong in Q1 2026, with 1,194 acres transacted.

Transaction volumes in 2025 were 1.6 times higher than the previous peak recorded in 2024, reflecting growing developer and investor appetite for land acquisition.

“The scale of activity in India's land market over the last five years reflects growing confidence in the country's long-term economic and urbanisation trajectory. The emergence of new growth corridors, supported by infrastructure investment and improved connectivity, is expanding the development footprint beyond traditional metropolitan markets,” said Somy Thomas, Executive Managing Director - Capital Markets, Cushman & Wakefield.

This unprecedented scale of land activity comes amid sustained momentum across asset classes, including offices, residential, retail, logistics & industrial, and data centres — all of which have recorded strong leasing and investment traction in recent years.

While Tier-I cities retained a 71% share of acreage across 2021-Q1 2026, Tier-II activity accelerated from 16 acres in 2021 to 2,120 acres in 2025, raising its annual share from around 2% to 34%.

The shift is also visible in parcel sizes. Between 2021 and Q1 2026, average Tier-I deal size declined from 21 acres to 10 acres, while the Tier-II average rose from 8 acres to 53 acres. The greater availability of large, contiguous parcels is supporting integrated townships, industrial parks and other large-format projects beyond established urban cores.

Office-linked land transactions increased five-fold between 2021-22 and 2024-25, while industrial & logistics acquisitions expanded nearly 13-fold, driven by manufacturing growth, infrastructure-led development and evolving supply-chain requirements.

Mixed-use land transactions grew 2.6 times over the same period, underscoring increasing preference for integrated, master-planned developments.

Meanwhile, data centre acquisitions expanded in absolute terms despite a moderation in overall share, reflecting sustained demand for digital infrastructure and continued land aggregation in locations offering power availability and connectivity.

Land acquisition patterns have also evolved. Even as outright purchases continue to dominate the market with over 60% (10,910 acres) of total transacted acreage between 2021 and Q1 2026 across both Tier-I and Tier-II cities, partnership-led structures such as joint ventures (JVs) and joint developments (JDs) have gained significant traction, accounting for over 4,405 acres during the same period.

The number of JV/JD transactions increased from 11 deals in 2021 to 42 deals in 2025, with this trend expected to grow further in the coming years.

Meanwhile, long-lease and redevelopment transactions contributed nearly 2,520 acres and 323 acres, respectively, between 2021 and Q1 2026. While these structures were negligible in 2021, together they accounted for nearly half of all land deals in Q1 2026, highlighting a clear broadening of transaction structures beyond traditional outright acquisitions.

“The market is also benefiting from greater transparency and evolving transaction structures. The growing adoption of partnership-led development structures is creating a more mature, efficient and investable land market. Alongside this, the post-pandemic preference for owning homes and land continues to shape buying decisions. At the same time, newer formats such as managed farmlands are gaining traction across several cities, reflecting how buyer interest is gradually expanding beyond traditional real estate options,” Thomas said.