Plot your dreams: Benefits of investing in a plot

Plots have always been a prized asset. Even with the rise in popularity of apartment complexes all over India it has not lost its popularity. On the contrary, the growth of flatted development has only added to its popularity as it marks a clear distinction between those who own a plot and those who own an apartment.

Even though the plots have for most of the time had an upper hand, practical considerations as well as budgetary limitations have always kept an apartment ahead in the preference when compared to plots. However, as an indicator of the changes in this trend, a survey immediately after the pandemic found that 34 percent of the respondents would prefer to buy a plot than an apartment as compared to 36% of the respondents who said that they would prefer an apartment.

Another study conducted in the last quarter of 2022 concluded that found that 27% of the total searches on Internet in the top six property market was for independent homes.

Mr. Rohit Mohan, Senior Vice-President, BPTP Group, says, “Pandemic turned out to be a transformative experience both at the personal as well as professional levels. The kind of impact it had on the psyche has been phenomenal. To a large extent it has changed the way we looked at home. Now people want more space, freedom to choose and crave for independence. They are also willing to spend more on homes and if their budget permits they definitely would opt for plotted development rather than an apartment.”

What has added a big push to the buyer’s preference for plots is its price. “Mr. Nayan Raheja, Raheja Developers. “The increase in demand of plots has been due to several important factors. Plots offer more per square feet value to consumers vis-à-vis apartments. In terms of appreciation, plots present better Return on Investment. Plus ‘built-to-suit’ nature of plots means superior customisation both in terms of requirement as well as aesthetic consideration of the buyer. Immediate possession and lower maintenance costs also make the buying plots an attractive proposition. As the economy opens up, this trend will continue and real estate will see further traction in the demand of plotted development.”

At the same time another development was also taking place that was gradually transforming the real estate. With improving connectivity both road and metro new landbanks in outer suburbs of the major metro cities started opening up. While the majority of the real estate companies came up with apartment complexes, a few took to developing plots like never before. Called gated plotted development it offered most of the amenities like centralised security, a gated community and other facilities, it acted as a major spur to plotted development.

According to Mr. Pushpender Singh, MD, JMS Group, “Gated plotted development combines the independence of plots with the advantages of apartment lifestyle and removes the long pending hurdle to plotted development. It not only offers the benefits of centralised facilities management but also provides its residents with modern security management thereby helping them lead a worry-free life.”

What also imparts plots an edge over the apartment is its high appreciation. A recent study has found that while the value of land witnessed an increase in the vicinity of 20 percent in the last few years, that of apartments remained stagnant registering a growth of around 6 percent in the same time period.

Another benefit of owning a plot is the freedom to design the house the way one wants to. Besides, one can, in most of the cities, easily construct three and half floors which the owner can rent out or sell as independent floors or can even use or let out a portion of for commercial purposes, subject to local rules.

However, the increasing popularity is also fraught with increasing risks. Opening of new land parcels has also provided the fly-by-night-operators to come out with irresistible schemes. Therefore, it is always important to exercise due diligence before buying a plot as that involves going through lots of paperwork which an average plot buyer might not be equipped to handle.  Therefore, it is always advisable to buy a plot from reputed developers.

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