Rising Land Costs and Project Viability Concerns Drive Developers Toward Joint Development Arrangements

NEW DELHI: India’s real estate land acquisition activity experienced a slowdown in the first nine months of 2026. Developers are increasingly opting for joint development arrangements (JDAs) over outright land purchases as rising land costs and project viability concerns shape acquisition decisions.

According to data from ANAROCK, JDAs accounted for one in every four land transactions during the period. Out of the 76 land deals closed in the first nine months of 2026, at least 19 involved JDAs. The share of JDA transactions in the overall land deal mix has shown a steady increase over recent years, rising from 10 transactions in 2022 to 30 in 2025. JDAs accounted for roughly 12 per cent of total land deals in 2022, climbing to nearly 24 per cent in 2025, and further to 25 per cent in the first nine months of 2026.

Mayank Saksena, MD and CEO of Land Services at ANAROCK Group, noted that project economics are driving this shift. He explained that developers are turning to JDAs with existing landowners to access land and build projects through partnerships rather than outright purchases, distinguishing these agreements from joint ventures with other developers.

The overall market activity during the nine-month period covered 76 land deals spanning approximately 1,445 acres, pointing to a cautious and selective acquisition strategy among developers. The slowdown was particularly visible in large-ticket transactions. Only five deals involved parcels of 50 acres or more during the nine-month period, compared to 12 in the corresponding period of 2025. Their combined acreage dropped to about 588 acres from roughly 2,398 acres.

Looking at broader trends between 2022 and the first nine months of 2026, a total of 516 land deals covering 12,958 acres were recorded across the country. While 2024 saw the highest volume of transactions with 133 deals covering over 2,515 acres, 2025 recorded the highest acreage, spanning 3,772 acres across 126 deals.

Geographically, the seven established metropolitan markets—Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Hyderabad, Pune, Chennai, and Kolkata—accounted for about 86 per cent of the 516 deals recorded between 2022 and September 2026. However, these metros accounted for only 57 per cent of the 12,958 acres acquired, highlighting growing activity beyond major urban centers. MMR led acquisitions with 2,798 acres, followed by NCR with 2,012 acres and Bengaluru with 1,679 acres.

Activity outside traditional metros was also highlighted by large transactions. Of the 61 large transactions involving parcels of 50 acres or more recorded during the overall multi-year period, 29 took place outside the seven established metros. Gujarat emerged as a strong market for large land deals, with Ahmedabad, Surat, and Vadodara together accounting for around 2,020 acres. Other regions such as Coimbatore, Amritsar, Nagpur, Panipat, and Ludhiana also featured among top cumulative acreage markets despite recording fewer overall transactions.

"The shift toward joint development arrangements reflects a practical adaptation to rising capital costs and margin pressures in the real estate sector. By choosing JDAs over outright land purchases, developers can protect their cash flows and improve project viability. This trend indicates a more disciplined approach to capital allocation and risk management in the current market environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes