India’s residential plot market has witnessed a sharp rise in activity since 2022 as both investors and developers turn to plotted developments for better returns and faster cash flows.
Residential project
India’s residential plot market has witnessed a sharp rise in activity since 2022 as both investors and developers turn to plotted developments for better returns and faster cash flows.
According to a report by NSE-listed real estate data analytics firm PropEquity, developers launched nearly 4.7 lakh residential plots across the top 10 Tier I and Tier II cities between 2022 and May 2025.
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Of the total, Tier II cities accounted for 2.43 lakh plots, or 52% of the total supply, with the remaining 48%—about 2.25 lakh plots—coming from Tier I cities, primarily Hyderabad, Bengaluru, and Chennai. These three southern metros were the only Tier I cities in the top 10 for plotted development supply.
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The top 10 cities by plot supply during this period include Hyderabad, Indore, Bengaluru, Chennai, Nagpur, Jaipur, Coimbatore, Mysore, Raipur, and Surat. In the first five months of 2025 alone, 45,591 residential plots were launched—equivalent to 36% of the total supply in 2024 and 28% of the supply in 2023.
“The estimated launch value of residential plots in these cities from 2022 is approximately Rs 2.44 lakh crore,” said Samir Jasuja, Founder and CEO, PropEquity.
“Plots have emerged as a preferred investment post-pandemic, driven by their liquidity, price appreciation potential, and the flexibility they offer for customization. For developers, plotted projects bring quicker cash flow and require less upfront investment than apartment developments.”
The report notes a shift in investor interest toward Tier II cities and South Indian markets. While demand for apartments and villas has softened in the first half of 2025, plotted developments continue to draw traction. Cities like Bengaluru, Indore, Raipur, Coimbatore, and Mysore saw significant price escalation in 2024.
Despite the overall momentum, the supply of residential plots declined 23% year-on-year in 2024, dropping to 1,26,556 units from 1,63,529 units in 2023, which had seen a 24% annual growth. Only three cities—Chennai (up 27%), Coimbatore (up 40%), and Surat (up 2%)—registered a rise in supply last year.
In terms of volume, Indore led in 2024 with 26,538 plots launched, followed by Chennai and Hyderabad. The weighted average launch price for plots across the top 10 cities rose 27% year-on-year in 2024 to Rs 3,679 per sq. ft. (Rs 33,111 per sq. yard or Rs 39,586 per sq. metre).
Analysts expect the trend toward plotted developments to continue as investors look for safer, high-growth real estate options, particularly in smaller but fast-growing urban centers.
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