Land deals fall 56% in 2026; 1 in 4 now a joint development agreement | Personal Finance

India’s real estate developers are becoming more cautious about acquiring land outright, with high land costs and concerns over project viability prompting a growing shift towards joint development agreements (JDAs).

The country’s land acquisition market recorded 76 transactions covering approximately 1,445 acres during the first nine months of 2026, compared with 99 deals spanning nearly 3,292 acres in the corresponding period last year, according to data from Anarock Research & Advisory.

While the number of transactions declined by around 23 per cent, the total acreage acquired fell by nearly 56 per cent, indicating a sharper slowdown in large land acquisitions.

The changing strategy is also visible in the growing popularity of partnership-led development. One in every four land transactions recorded during January-September 2026 was a JDA. Of the 76 deals, 19 involved developers partnering with landowners rather than purchasing the land outright.

“The first nine months of 2026 saw 76 land deals for around 1,445 acres, signalling a more cautious and selective acquisition strategy,” said Mayank Saksena, managing director and chief executive officer, Land Services, Anarock Group.

“With project economics becoming more important, developers are increasingly turning to JDAs with existing landowners. These are distinct from joint ventures or JVs, where developers partner with other developers who have constrained ability to complete projects. Under a JDA arrangement, developers can access land and build projects via a partnership rather than an outright purchase,” he said.

Developers increasingly prefer partnerships over outright purchases

The shift towards JDAs has been building over the past few years. The number of such transactions increased from 10 in 2022 to 30 in 2025, while their share of total land deals rose from 12 per cent to 24 per cent.

In the first nine months of 2026, the share increased further to 25 per cent.

For developers, the model offers an opportunity to access strategically located land without bearing the entire upfront cost of acquisition. Under a JDA, the landowner contributes the land while the developer undertakes project development, with the two parties sharing the proceeds or developed area according to agreed terms.

The arrangement can help developers conserve capital and manage land acquisition risks, particularly when land prices are high or project approvals and sales timelines remain uncertain.

The increasing preference for such arrangements also signals a change in how developers are approaching expansion, with greater emphasis on project feasibility and capital efficiency.

Big-ticket land acquisitions take a hit

The slowdown is particularly pronounced in large land transactions.

The number of deals involving parcels of 50 acres or more fell from 12 in the first nine months of 2025 to just five during the same period in 2026. The combined acreage involved in these transactions dropped sharply from approximately 2,398 acres to 588 acres.

The decline suggests that developers are becoming more selective about committing capital to large land banks, instead focusing on parcels with clearer development potential and more viable project economics.

Between 2022 and September 2026, India recorded 516 land transactions covering approximately 12,958 acres. 2024 witnessed the highest number of transactions at 133, covering 2,515 acres. In terms of acreage, 2025 was the strongest year, with 126 transactions covering 3,772 acres.

Tier II and III cities attract large land parcels

The geography of land acquisitions is also changing.

Between 2022 and September 2026, the seven established property markets — Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Hyderabad, Pune, Chennai and Kolkata — accounted for approximately 86 per cent of all recorded land transactions. However, they represented only around 57 per cent of the total acreage acquired.

MMR, NCR and Bengaluru remained among the leading markets for cumulative land acquisitions. Ahmedabad also stood out, with approximately 1,460 acres acquired across just 14 transactions in the tracked data.

The concentration of large transactions in smaller markets is particularly evident in Gujarat. Ahmedabad, Surat and Vadodara together accounted for approximately 2,020 acres, or around 16 per cent of the total acreage tracked.

Coimbatore, with approximately 770 acres, also featured prominently, alongside Amritsar, Nagpur, Panipat and Ludhiana.

“The 61 transactions of 50 acres or more accounted for about 63 per cent of all acreage, and nearly half of them (29) were outside the seven established metros,” Saksena said.