Developers are moving beyond metros to build on a new property demand trend

Planned projects and villa developments are emerging as a lucrative business opportunity and encouraging more developers to explore this new market. A number of such projects are planned to be launched in Mangaluru, Indore, Nagpur, Prayagraj, Amritsar, Kochi and surrounding areas of major cities such as Bengaluru and Mumbai.

Like big developers Godrej Properties Ltd has focused on top-tier cities for residential projects and has actively acquired land for planned projects in smaller cities. Plots are often sold as standalone properties or as part of a larger residential project. They are a good investment product due to their price appreciation and lack of construction risk.

Planned developments refer to a large area of ​​land that a developer purchases and subdivides into smaller individual parcels to be sold to buyers. These parcels are sold after all legal approvals are obtained and basic infrastructures such as perimeter walls, internal roads, water pipelines, drainage and sewage networks, electrical connections and street lights are completed. Developers are adding value-added features to make plots more attractive.

In 2024-25, The House of Abhinandan Lodha (HoABL), one of the leading planned developers, added 278 acres or 12 million sq ft of land at Khopoli, Neral and Alibaug in Maharashtra and Goa. Cities in the pipeline include Nagpur, Amritsar, Varanasi and Shimla.

“For generations, Indians Gold and earth are close to their hearts. But while gold was relatively easier to purchase, it came with age-old challenges like land, title, security, liquidity or suitability, many of which HoABL has addressed,” said HoABL chairman Abhinandan Lodha.

Next wave of demand

Delhi-based Omaxe Ltd launched planned projects in Amritsar, Indore, Prayagraj, Ratlam and Palwal last year and has also launched additional phases in the cities of Lucknow, representing the next wave of demand in northern India.

“We’re seeing a healthy mix of interest from end users, emerging mobile families, local business owners, local business owners. “NRIs (non-resident Indians) and investors prefer land due to its stable appreciation and low maintenance profile,” said Mohit Goel, managing director of Omaxe.

Next year, Omaxe plans to launch planned projects in Bareilly, Ludhiana, Bhatinda, Vrindavan, Hathras, Gorakhpur, Ujjain and Patiala, among other cities.

Land prices near some major cities have increased faster than apartment prices in the last two years. Bengaluru-based Prestige Group, which has launched a number of planned projects this year, has seen prices increase by 17% on an annual basis, on average. ₹8,425 per sq ft as of September 30. In comparison, apartment prices increased by an average of 6% ₹13,769 per sq ft during this period, according to Prestige’s latest investor presentation.

Prices of the project called The Sarayu, launched in 2023-24 in Ayodhya, where HoABL has implemented branded plots for the first time ₹Gained value of 10,820 per square meter ₹14,450 per square meter

Mayank Saksena, managing director and CEO of land services at Anarock Property Consultants, said planned projects provide more flexibility to buyers compared to certain restrictions that buying a flat entails.

“There is a huge rush among people to buy corner plots. Nowadays, the planned projects come with better facilities and clubhouses, which has led to a rise in prices. Unlike in the past, when plots were mainly purchased for investment purposes, more buyers want to build houses and actually use them,” he said.

Real estate companies also make it easier to buy land. Lodha said its technology-enabled platform allows customers to view, interact and purchase land whenever they want.

Notable contributors

According to Anarock, from January to June this year, around 504 acres were acquired for development of land and villas in cities such as Indore, Ahmedabad, Panipat, Bengaluru and Mumbai Metropolitan Region. It is noteworthy that tier 2 and 3 cities have emerged as significant contributors to the national land transaction ecosystem.

“These markets, once considered peripheral in terms of core real estate activity, now represent an essential component of India’s real estate growth horizon, challenging the historical metro-centric model,” Saksena added.

After focusing on real estate projects in Gujarat, Bengaluru and Pune, Ahmedabad-based Arvind SmartSpaces entered the Mumbai Metropolitan Region this year and acquired 92 acres of land in Khopoli through a joint development agreement for a land and villa project. The project will be the first large-scale horizontal development in the region with amenities such as a golf course.

More developers are entering this space. Tribeca Developers this week launched Tribeca Estates, a new business segment focused on premium development projects and branded villas. The business will capitalize on the emotional appeal of land ownership while also offering buyers the chance to build their own home.

“Land is the most permanent asset a family can own, yet planned space lacks imagination and confidence,” said Tribeca founder Kalpesh Mehta.