Data centres, plots fuel small city land deals

While home sales continue to be dominated by top-tier metros, smaller cities are seeing a surge in land transactions driven by plotted developments, warehousing and data centres.

- Madhurima Nandy

This uptick in activity, both via outright acquisitions and joint development agreements, is being fuelled by two parallel trends: large developers diversifying into emerging markets, and regional players expanding operations. Tier-II and III cities such as Sanand, Indore, Ahmedabad, Amritsar, Coimbatore and Mysuru have seen a notable rise in land deals this year.

Land deals gained momentum post-pandemic, mainly led by the residential sales boom in major cities. Over time, developers began eyeing smaller markets for plotted layouts, logistics parks, and data centres.

"Tier-II and III cities that were once considered peripheral to mainstream real estate activity now represent a substantial component of the investment landscape. The market has also evolved from residential-focused acquisitions to diversified assets classes," said Mayank Saksena, managing director and chief executive officer—land services at property advisory Anarock Group.