Land is one of the most valuable assets in India, and its price depends on many factors like location, type of land, and market demand. Whether you’re planning to invest in real estate or farming, knowing the cost of 1 acre of land in India can help you make smart decisions.
In this article, we will explore what affects land prices, how costs vary in different states, and important things to consider when buying agricultural or residential land.
Overview of Land Prices Across India
The average land cost per acre in India stands at approximately ₹157.919 lakhs, marking a 10.77% increase from the previous year.
This surge reflects the dynamic nature of the real estate market, driven by urbanization, economic growth, and infrastructural developments.
| Category | Details |
|---|---|
| Average Land Price | ₹1.58 Crores per acre |
| Quarterly Increase | 0.32% |
| Year-over-Year Growth | 10.77% |
| Top Price Increases | |
| – Pune | 33.33% |
| – Chennai | 24.6% |
| – Jaipur | 21.88% |
| – Mumbai | 8.84% |
| – Delhi | 17.01% |
| Price Influencers | Location, infrastructure, property type |
| Market Influences | Demand-supply trends, economic growth, policy changes |
| Sector Recovery | Strong recovery in 2023 and 2024 |
Check Out: What is Market Value of Land?
1 Acre Land Price in India Variations Across States
Land prices in India vary by state due to urbanization, economic growth, and location. Northeastern states have lower costs due to agrarian economies and low population density, while Karnataka and Tamil Nadu see moderate prices due to urban growth and agriculture. Regional economic and social factors play a key role in these variations.
| State | Avg. Land Cost Per Acre (INR) |
|---|---|
| Delhi | 1,00,00,000 |
| Telangana | 25,00,000 |
| Tamil Nadu | 20,00,000 |
| Andhra Pradesh | 15,00,000 |
| Maharashtra | 15,00,000 |
| Goa | 10,00,000 |
| Karnataka | 10,00,000 |
| Punjab | 10,00,000 |
| Rajasthan | 10,00,000 |
| Kerala | 9,00,000 |
| Himachal Pradesh | 8,50,000 |
| Haryana | 8,00,000 |
| Odisha | 5,50,000 |
| West Bengal | 5,00,000 |
| Jammu & Kashmir | 4,50,000 |
| Madhya Pradesh | 4,50,000 |
| Gujarat | 4,00,000 |
| Jharkhand | 4,00,000 |
| Sikkim | 4,00,000 |
| Uttar Pradesh | 4,00,000 |
| Manipur | 3,50,000 |
| Tripura | 3,50,000 |
| Uttarakhand | 3,50,000 |
| Bihar | 3,00,000 |
| Meghalaya | 2,50,000 |
| Nagaland | 2,50,000 |
| Chhattisgarh | 2,00,000 |
| Assam | 1,50,000 |
Suggested Read: Value Investment in Real Estate
Urban vs Rural Land Prices in India
A significant disparity exists between urban and rural land prices, primarily due to factors like infrastructure, accessibility, and economic opportunities. Below is a comparative overview of land prices per acre in select states:
| State | Urban Cost (INR Crore) | Rural Cost (INR Lakh) |
|---|---|---|
| Maharashtra | 306 crores | 15 lakhs |
| Delhi | 306 crores | 15 lakhs |
| Tamil Nadu | 153 crores | 7.5 lakhs |
| Karnataka | 153 crores | 7.5 lakhs |
| Gujarat | 76.5 crores | 3.75 lakhs |
| West Bengal | 76.5 crores | 3.75 lakhs |
| Uttar Pradesh | 38.25 crores | 1.88 lakhs |
| Rajasthan | 38.25 crores | 1.88 lakhs |
| Madhya Pradesh | 19.13 crores | 0.94 lakhs |
| Bihar | 19.13 crores | 0.94 lakhs |
Suggested Read: Real Estate Market in Bangalore
Agricultural Land Price in India
Agricultural land, crucial for the livelihood of more than half of India’s population, varies in price depending on state regulations, soil fertility, and available infrastructure.
| State | Avg. Price per Acre (INR Lakhs) |
|---|---|
| Karnataka | 93 lakhs |
| Telangana | 81 lakhs |
| Andhra Pradesh | 77 lakhs |
| Uttar Pradesh | 58 lakhs |
| Maharashtra | 49 lakhs |
| Tamil Nadu | 47 lakhs |
Suggested Read: Loan Against Agricultural Land
Residential 1 Acre Land Price in India
Residential land prices in India vary by location, with urbanized southern states being costlier than the north due to demand and infrastructure.
| State | Average Residential Land Cost (Per Acre in INR) |
|---|---|
| Delhi | 1,00,00,000 |
| Uttar Pradesh | 50,00,000 |
| Karnataka | 20,00,000 |
| Tamil Nadu | 25,00,000 |
| Maharashtra | 15,00,000 |
| West Bengal | 5,00,000 |
| Telangana | 25,00,000 |
| Rajasthan | 10,00,000 |
Suggested Read: Circle Rates in Delhi
Commercial Land Price in India
Commercial land prices are high due to income potential, urbanization, and proximity to business hubs, with major cities like Delhi and Maharashtra seeing the steepest rates.
| State | Average Commercial Land Cost (Per Acre in INR Crores) |
|---|---|
| Delhi | 50 crores |
| Haryana | 40 crores |
| Uttar Pradesh | 30 crores |
| Maharashtra | 25 crores |
| Karnataka | 20 crores |
| Tamil Nadu | 15 crores |
| Telangana | 10 crores |
| Gujarat | 8 crores |
| West Bengal | 7 crores |
| Rajasthan | 6 crores |
Suggested Read: Real Estate Surge in Thane
Industrial Land Price in India
Industrial land costs less than residential and commercial land, with prices varying based on infrastructure, connectivity, and state industrial policies.
| State | Average Industrial Land Cost (Per Acre in INR Lakhs) |
|---|---|
| Kerala | 22 lakhs |
| Madhya Pradesh | 10 lakhs |
| Maharashtra | 25 lakhs |
| Odisha | 12 lakhs |
| Punjab | 18 lakhs |
| Rajasthan | 15 lakhs |
| Tamil Nadu | 20 lakhs |
| Telangana | 18 lakhs |
| Uttar Pradesh | 15 lakhs |
| Uttarakhand | 12 lakhs |
| West Bengal | 15 lakhs |
Suggested Read: Land Development Bank
Land Prices in Indian SEZs and key Considerations for investors
Special Economic Zones (SEZs) in India are designed to boost economic growth, attract investments, and promote exports. Established under the SEZ Act of 2005, these zones support various industries, including IT, biotechnology, and pharmaceuticals.
Land costs in SEZs vary based on location, infrastructure, and industry focus, influencing investment decisions.
Key factors influencing land prices in SEZs
Land Prices in SEZs vary based on location, infrastructure, industry demand, government policies, and proximity to key transport hubs.
- Location – Urban SEZs have higher land costs due to better infrastructure, while rural SEZs are more affordable but may lack facilities.
- Infrastructure Development – Availability of roads, power, water supply, and communication networks influence land pricing.
- Proximity to Ports and Airports – SEZs near major ports and airports have higher land costs due to logistical advantages.
- Industry Type – SEZs catering to high-demand industries like IT, pharmaceuticals, and manufacturing tend to have costlier land.
- Government Policies and Incentives – Tax benefits, subsidies, and state-specific incentives impact land affordability.
- Demand and Supply – High investor interest in a particular SEZ drives up land prices, while low demand keeps costs stable.
- Land Availability – Limited land in prime SEZs leads to higher costs, whereas newly developed SEZs may offer lower prices.
Land Price in Metro Cities
Land prices in metro cities like Mumbai, Hyderabad, and Bangalore are influenced by economic growth, infrastructure projects, and government policies.
High GDP growth, rapid urbanization, and transport developments drive demand, making land investment both complex and lucrative.
Key Points
- Economic Growth – Cities with strong GDP growth, like Mumbai, experience high land demand, keeping prices elevated.
- Infrastructure Development – Projects like metro expansions and highways have significantly increased land values.
- Post-Pandemic Surge – Cities like Gurgaon and Hyderabad saw land prices rise by over 200% after the pandemic.
- Government Policies – Zoning laws, land-use regulations, and incentives impact supply and pricing.
- Urban Expansion – As metro cities grow, land investments become more competitive and valuable.
| City | State | Average Cost Per Acre (INR Crore) |
|---|---|---|
| Mumbai | Maharashtra | ₹33.26 crore |
| Delhi | Delhi | ₹24.64 crore |
| Bangalore | Karnataka | ₹14.40 crore |
| Chennai | Tamil Nadu | ₹9.60 crore |
| Hyderabad | Telangana | ₹8.64 crore |
| Kolkata | West Bengal | ₹7.68 crore |
| Pune | Maharashtra | ₹6.72 crore |
| Ahmedabad | Gujarat | ₹4.32 crore |
Check Out: Most Expensive Land Price in India in 2025
Land Price in Tier-2 and Tier-3 Cities
Land prices in Tier-2 and Tier-3 cities are significantly lower than in metros, making them attractive for investment. Cities like Ahmedabad, Jaipur, and Dehradun are experiencing steady growth due to rising infrastructure and real estate demand, offering more affordable alternatives for residential and commercial projects.
| State | Average Cost Per Acre (INR) |
|---|---|
| Andhra Pradesh | ₹15 lakhs |
| Assam | ₹10 lakhs |
| Bihar | ₹12 lakhs |
| Chhattisgarh | ₹8 lakhs |
| Gujarat | ₹20 lakhs |
| Haryana | ₹25 lakhs |
| Himachal Pradesh | ₹12 lakhs |
| Jammu & Kashmir | ₹15 lakhs |
| Jharkhand | ₹10 lakhs |
| Karnataka | ₹18 lakhs |
| Kerala | ₹22 lakhs |
| Madhya Pradesh | ₹10 lakhs |
| Maharashtra | ₹25 lakhs |
| Odisha | ₹12 lakhs |
| Punjab | ₹18 lakhs |
| Rajasthan | ₹15 lakhs |
| Tamil Nadu | ₹20 lakhs |
| Telangana | ₹18 lakhs |
| Uttar Pradesh | ₹15 lakhs |
| Uttarakhand | ₹12 lakhs |
| West Bengal | ₹15 lakhs |
- North India – Haryana has the highest land cost (₹25 lakhs) due to its proximity to Delhi, while Uttar Pradesh and Uttarakhand are more affordable (₹12-15 lakhs).
- South India – Kerala has higher prices (₹22 lakhs) due to tourism, while Karnataka, Andhra Pradesh, and Telangana fall in the mid-range (₹15-18 lakhs).
- West India – Maharashtra and Gujarat have higher prices (₹20-25 lakhs) due to urbanization and industrial growth.
- East India – Bihar, Assam, and Odisha offer lower-cost land (₹8-12 lakhs), mainly used for agriculture.
Check Out: Best Tier 2 Cities in India for Real Estate Investment
Land Price in Tourist Destinations of India
India’s tourism hotspots see higher land prices due to strong demand, high tourist footfall, and limited land availability caused by geographical and environmental factors.
| State | Average Land Cost Per Acre (INR) |
|---|---|
| Goa | ₹1.5 crore |
| Kerala | ₹50 lakhs |
| Himachal Pradesh | ₹25 lakhs |
| Rajasthan | ₹20 lakhs |
| Uttarakhand | ₹15 lakhs |
| Sikkim | ₹10 lakhs |
| Meghalaya | ₹8 lakhs |
| Assam | ₹5 lakhs |
Check Out: Goa Land Records 2025: Complete Guide
Land Price in Coastal Areas of India
Coastal land prices in India vary based on tourism, urban growth, and metro proximity. Goa and Maharashtra have higher rates, while West Bengal and Odisha remain more affordable.
| State | Land Cost Per Acre (INR) |
|---|---|
| Andhra Pradesh | ₹1,00,000 – ₹10,00,000 |
| Goa | ₹5,00,000 – ₹50,00,000 |
| Gujarat | ₹2,00,000 – ₹20,00,000 |
| Karnataka | ₹3,00,000 – ₹30,00,000 |
| Kerala | ₹4,00,000 – ₹40,00,000 |
| Maharashtra | ₹6,00,000 – ₹60,00,000 |
| Odisha | ₹1,50,000 – ₹15,00,000 |
| Tamil Nadu | ₹4,00,000 – ₹40,00,000 |
| West Bengal | ₹2,50,000 – ₹25,00,000 |
Check Out: Assam Land Records
Factors Influencing Land Prices in India
Several key factors contribute to the variation in land prices across different regions:
- Location and Accessibility: Proximity to urban centers, availability of transportation, and infrastructure development significantly impact land values.
- Economic Growth: India’s GDP growth, projected between 6.5% and 7.0% for FY2024-25, has bolstered investor confidence in the real estate sector.
- Agricultural Productivity: Fertile areas suitable for diverse crops often see elevated land costs.
- Government Policies: Land acquisition regulations, zoning laws, and incentives for certain sectors can influence land valuations.
- Urbanization and Population Growth: Rapid urbanization and increasing population density in cities escalate the demand for land, driving up prices.
- Economic Development: Regions with robust industrial and commercial growth tend to have higher land prices due to increased demand.
How to Determine 1 Acre Price in India?
The price of 1 acre of land in India depends on various factors, including location, land type, market demand, and government policies. Here’s how you can determine the cost:
- Location Matters – Urban areas and metro cities have higher land prices, while rural and agricultural land is more affordable.
- Land Type – Residential, commercial, industrial, and agricultural lands have different pricing structures.
- Government Regulations – Land rates are influenced by circle rates set by local authorities and zoning laws.
- Market Demand – High demand areas see price appreciation, while remote locations remain lower in cost.
- Infrastructure & Connectivity – Land near highways, airports, and business hubs is priced higher due to better accessibility.
- Land Records & Legal Status – Checking land titles, ownership history, and legal clearances can affect the final price.
- Recent Transactions & Market Trends – Comparing nearby land sales and ongoing development projects gives an estimate of market value.
To get an accurate price, consult local real estate agents, check government land records, or use online property valuation tools.
Check Out: Bangalore’s Real Estate Market?
Why Agricultural Land is Becoming a Top Investment Choice
The demand for agricultural land is rising due to increased interest in organic farming, sustainable living, and rural investments. This trend has led to higher land prices, making it a valuable asset for investors.
- Growing interest in farming and organic food boosts demand for agricultural land.
- The pandemic accelerated the shift towards rural and self-sufficient living.
- Prices of agricultural land have increased across various regions.
Conclusion
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Frequently Asked Questions
1 acre is equal to 43,560 square feet or approximately 4,047 square meters.
The price of 5 acres of land in India varies by location, ranging from a few lakhs in rural areas to several crores in urban and high-demand regions.
The cheapest 1 acre of land in India is typically found in rural areas of states like Assam, Chhattisgarh, and Odisha, where prices can start as low as ₹1.5 to ₹5 lakhs per acre.
Yes, you can buy 100 acres of land in India, but restrictions may apply based on state laws, land use, and buyer eligibility.
An acre is a unit of land measurement commonly used in India and worldwide, equal to 43,560 square feet or approximately 4,047 square meters.
The legal landholding limit in India varies by state and land type, with ceiling laws generally capping agricultural land ownership between 10 to 54 acres.
Land size can be measured using standard units like acres, hectares, or square feet, and tools like measuring tapes, GPS devices, or land survey equipment.
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