Coimbatore Leads Tier 2 Cities With Indias Largest Land Deal of 714 Acres

The Indian real estate sector witnessed a remarkable shift in the first half of 2025, with land transactions spanning 2,900 acres and valued at an astounding ₹31,000 crore. This surge is predominantly driven by Tier 2 cities, signalling a significant decentralisation of investment away from traditional metro-centric strategies. Notably, Coimbatore has emerged as a frontrunner, recording the single largest land transaction of 714 acres, underscoring its pivotal role in this evolving landscape. This trend holds profound implications for fostering more balanced and sustainable urban development across the nation, creating equitable opportunities beyond megacities.

A recent report highlights that of the 76 land deals concluded in H1 2025, a substantial nine deals for over 1,907 acres took place in Tier 2 and Tier 3 cities. These included key urban centres such as Ahmedabad, Amritsar, Indore, Mysuru, Panipat, and most prominently, Coimbatore. This contrasts with the 67 deals covering approximately 991 acres that occurred within the top-seven metropolitan cities. The data unequivocally points to a growing confidence in smaller urban markets, challenging historical investment models and paving the way for a more geographically distributed economic opportunity.

Despite a backdrop of broader economic uncertainty, exacerbated by ongoing geopolitical tensions, land buying activity has continued unabated, setting a new record. The total volume of land transacted in H1 2025 already surpasses 1.15 times the entire volume recorded in 2024, which saw approximately 133 deals for 2,515 acres. This robust and sustained interest in land as a fundamental resource underscores the real estate market’s maturation and its strategic importance in India’s growth trajectory. The total revenue potential from these H1 2025 land deals is estimated at approximately ₹1.47 lakh crore, with a total development potential of 233 million square feet.

Within the Tier 1 cities, the Mumbai Metropolitan Region (MMR) led in terms of the number of deals, clocking 24 land transactions for over 433 acres. Bengaluru followed with 15 deals covering approximately 182 acres, indicating continued interest in established urban hubs. However, the shift towards Tier 2 cities reflects a strategic re-evaluation by developers and investors. The relative affordability of land, coupled with improving infrastructure and growing economic activity in these emerging urban centres, is proving to be a potent combination, driving demand for both residential and commercial development.

The post-pandemic period, from 2021 onwards, has witnessed a relentless surge in land deals, with over 11,858 acres transacted in 423 deals across the country for various developments. The sheer scale and increasing sophistication of these transactions, which collectively account for a combined development potential of 841 million square feet, underscore land’s foundational role in the burgeoning real estate market. This trend is not merely about expansion but also about strategically positioning for future urbanisation.

The emergence of Tier 2 and Tier 3 cities as significant contributors to the national land transaction ecosystem is particularly noteworthy. These markets, once considered peripheral to mainstream real estate activity, now represent an inalienable component of India’s real estate growth horizon. This dynamic shift is challenging the historical metro-centric model and inducing a healthier, more balanced geographic distribution of economic opportunity across the country. Such decentralisation is crucial for sustainable urban growth, easing pressure on mega-cities, and promoting equitable development.

The land deals in H1 2025 encompass a mix of transaction types, including outright sales and joint development agreements between realtors and landowners. This flexibility in deal structures further facilitates market activity and allows for diverse development approaches. A substantial portion of these transactions, specifically 54 separate deals for over 1,200 acres, are earmarked for residential developments, including apartments, villas, plotted developments, and township projects. This signifies a strong demand for housing solutions as urban populations continue to expand.

Beyond residential projects, the land transactions also cater to other critical sectors. Eight deals involving approximately 48.41 acres are proposed for commercial projects, indicating a growing demand for office and retail spaces in these emerging cities. Furthermore, six deals totalling 1,034 acres are designated for mixed-use developments, promoting integrated urban planning that combines residential, commercial, and recreational spaces. Additionally, three separate deals encompassing around 537 acres are slated for industrial and logistics parks, underscoring the vital role of these cities in strengthening India’s supply chain and manufacturing capabilities. This diversified development across residential, commercial, and industrial segments in Tier 2 and Tier 3 cities signals a holistic and sustainable approach to urban expansion.

Coimbatore Leads Tier 2 Cities With Indias Largest Land Deal of 714 Acres