Land is divided into plots or lots for sale or lease to homebuilders for new dwelling developments in plotted developments. The plots are often identical in size and are not separated by any land, however they are typically divided by a system of roadways.

The growing technology raised the pollution bar on the earth, and people across the world are in search of serene locations to build their homes, and India is no exception to this. The prospective home buyers are looking for serene locations to enjoy a peaceful life close to nature, at least after office or business hours. The increasing demand for polluted free zones to build the home has witnessed a rise in demand for plotted developments.

People across the country are now keen on low-density living, and the trend is expected to grow further in the near future, raising the surge of plotted developments, especially in southern parts of the country. Post pandemic, there is a major shift in the perspective of home buyers from apartment living to individual houses as they facilitate effective social distancing. Many companies are inclined to work from home option for the employees, allowing them to report from anywhere in the city, and scenario has altered consumer choices significantly.

Demand for plotted developments post-pandemic

There was always a demand for plotted developments in Tire1, Tire-II cities, but the demand for plotted developments surged to new heights post-pandemic being backed by reasons. A buyer having an individual home can control the number of visitors at home while safeguarding oneself from diseases as you don’t need to share common spaces. Affordability is another reason for choosing plots over apartments. Many plotted developments are located in the peripheral areas of the city and are expected to take off prices in the near future with the surging demand and ongoing developments happening in the city. Many buyers are also feared of investing in the apartments due to the delay caused in giving the possession to the buyer because of the pandemic effects like lack of enough labour to complete the construction on time.

As per the recent research reports, there have been increasing search trends for online plotted developments by 21% in the first quarter of 2022. The reasons behind the personalization of plotted homes are the increasing number of work from homes by corporates and e- schooling by educational institutions.

Factors fuelling a surge in demand for plotted developments

The flexibility and affordability of the space remain the prime reason for the surge in demand for plotted developments.

Prefer low-density living

In comparison to apartment living, plotted development projects facilitate low-density living. Individuals looking for a low-density living prefer purchasing plots over apartments for calm and peaceful life post their busy work schedule in a day. When you are living in low-density areas, you will have better access to the resources available like water, electricity, and many more. The gated development will give better access to in-house amenities like a children’s park, swimming pool, and parks. The effect of pandemics has a great impact on the perspectives of home buyers. With the corporates adopting for work from home options and schools choosing to go for an e- schooling system, people are choosing independent buildings over apartments with high raise floors.

Flexibility in Construction

Plotted development communities are available in different space sizes, and one can pick the respective size as per their budgetary constraints. The flexibility in space availability gives you the freedom to design the house that fits your way of life. In the countries like India, purchasing a home takes major life savings, so there is an increasing trend of people who are interested in building a home as per their requirements, overtaking possession of pre-built houses in a high-raised apartment. Choosing plots over apartments allows you to build an individual unit while you enjoy the amenities like a gated community. The individual unit in a plotted land will give more privacy over apartments.

Expandable in future

In addition to giving you the needed flexibility needed to construct the house as per your requirements, you can also make the individual unit into a multi-storey building by adding floors to the building at a later date. Investing in real estate land is always a great thing if a business or an individual has a long-term vision. Plotted development investments in the city give an individual more offers depending on location, development progress, and time frame.

Potentiality for higher returns

Plotted lands in any city have higher returns on investment than apartments. It is also a primary driving force behind prospective home buyers choosing the plotted land over the individual building. The changing demand patterns of the home buyers made many popular builders introduce plotted development to buyers. The price of apartments is likely to depreciate over a period of time while the land investments only appreciate giving you assured high returns over the period of time. A home buyer can purchase any plot size as per the varying sizes between 500 sqft to 10,000 sqft. High-income group people are the targeted customers for the plotted development projects until recent times as they like to lead a private and luxurious life, comforting all the requirements while building a home for themselves. The scenario has taken a new turn with emerging IT industries in the country with high-end pay scales for employees. Banks have also introduced mortgage facilities to plot in the integrated township fuelling the demand for plotted developments.

Increased connectivity

The demand for open plots in metro cities raised in parallel with apartment purchases with the emergence of metro rails, and new flyovers across the city have improved connectivity even to distant locations. The travel time is no longer a concern for the urban community. Improved connectivity and reduced travel time also played a key role in raising the plotted lands over apartments.

Plotted developments  – good investment option

The changing trends of the people from apartment living to individual homes have seen a bigger surge post-pandemic not only because of the benefits these plots offer to the buyers but also as buyers started looking at plots as a considerable investment option. Here are the reasons why plotted purchases are a good investment option too.

Affordable purchase option

Plotted development projects may cost you big on the completion of an individual unit in the place but buying a plot in the locality is, of course, an affordable option to the buyer on comparing with the apartment purchase in metro cities. These plots have a low ticket size, and even young investors can easily purchase one now to construct the home at a later date. Many plotted sites of the city are available in the peripherals of the city and are available at a low price.

Minimum risk

If you are a risk-averse investor, plotted project developments are the right option for you. These projects carry a minimal risk on purchase, and all you have to do is check the authenticity of the seller while picking one. If you are buying the property in an integrated township, the risk is minimal as the plots are sold as one among the multiples in the same boundary line. The chances of illegal occupancy are minimal. Unlike apartments, the buyer of the property can enjoy quick possession of the property as there is minimal development needed to complete the project. Once you make the payment for the respective purchase, ownership of the property is transferred without any delay.

Low property tax

Property tax for the citizens of India is inevitable irrespective of the type of property they hold. Suppose you are a young working professional to build an individual home for yourself at a later date. Deciding to purchase a plot now will benefit you in every way. The purchases are not only affordable, fitting your pocket size but also reduce tax burden with fewer tax payments on comparing with houses.

Easy to sell

Buying a plot is not only a choice to build an individual house in the future; you can also look at it as a considerable investment option. Plotted developments though shelved into asset banks paying an affordable price, have a quick and good appreciation value. A resale land can be liquidated more easily than any other residential property. Your investment in the plotted developments is going to fetch you a higher value in the near future with quick liquidation feasibility.

 Amenities

Surging demand for plots purchased in the metro cities has encouraged popular builders to look at the potential market and create enough supply for growing demand. Developers today are offering the plotted projects through integrated townships. These townships located on the outskirts of the city also offer many luxurious amenities like swimming pools, gyms, gardens, clubhouses, jogging tracks, and more. Having an individual house on the outskirts of the city does not ask you to compromise on the amenities you enjoy in the apartment society.

Embrace community-style living

Plotted development projects give low-density living, but you can still embrace community-style living here. The residents of an integrated township can work together to develop a sense of togetherness while living in an integrated community. With all the amenities and facilities available in the township, there is no need for you to step out of the property to spend some quality time with the family.

Catering to the rising demand for plots

The cities like Bangalore, Hyderabad, and Chennai are witnessing a great demand for plotted purchases aimed at the effects of COVID. With the growing demand for plotted developments, relators are making bigger footsteps in the arena to capture the potential market. They offer a plethora of lifestyles to the buyers by fencing the integrated communities with good amenities for comfortable living. The relators are looking a potential growth in the market. Both relators and home buyers pounced on the investment option due to many aspects like growing asset value, a lot of availability of land in untapped locations and low-density projects. The changing trends have motivated relators to bring more plotted projects to buyers’ availability in the untapped locations of the metro cities. The increasing density of population in the city also motivated home buyers to purchase land parcels which created a demand in the segment and prompted leading developers to monetize the segment by offering enough supply to the demand. Investor and user-driven markets made plotted projects fast-moving asset classes in comparison to apartments.

Amidst the growing demand for plotted projects, many renowned developers have ventured into popular projects as the potential buyers in the segment are looking to buy the plots from the reputed developers only to combat the risk in the investment. More developers are entering the market for the reasons below.

• Plotted lands are an easy liquidating asset to pledge with the banks to raise necessary working capital for the business.
• The developers work with huge capital investments in building multi-storey apartments, but the capital investments in the plotted projects are considerably low, assuring high returns on the investment.
• There is a great demand for plotted ventures developed by brand relators.

There is always demand for independent houses across metro cities with ample availability of untapped locations on the outskirts of the city. Relators are showing more interest in the plotted projects due to ample availability of land, and buyers are moving towards the projects due to the absence of adequate apartment projects within the limits of the city as per their budget constraints. Strategically speaking, the demand for independent houses across various metro cities has surpassed pre COVID times. The new home buyers are now looking for bigger homes with a rising need for flexibility in renovation due to the increasing number of work-from-home facilities that are expected to continue for a long time in the future.

Top real estate developers are preparing to build plots close to important cities in an effort to take advantage of the pandemic’s spike in demand for this type of property.

Areas to check-in

Metro cities like Hyderabad, Chennai, Bangalore, Delhi, Mumbai, Pune, and Kolkata have turned into potential hotspots for investments in plotted project developments. The corridors have become the right destinations for investment due to significant growth potential in the area, improved connectivity, and social and economic infrastructure. With the increased work-from-home options by big corporates, the cities are witnessing a huge demand for plots spacing around 900sqft to 1800sqft as per their budgets.

Points to check in before making a purchase

Due diligence is very important while making any purchase, and it is key when making investments in land parcel lands because it is one of the big investments in one’s life. It also involves a lot of paperwork in comparison with apartments.

You need to check many certificates like title deed, encumbrance certificate, release certificate, property tax receipts, and local approvals before making a purchase. There are numerous instances where frauds are happening across the cities, especially during plot purchases. A due check of all these certificates is very important to prevent fraud on purchasing a plot.

If you are purchasing a resale property, make sure you check for the release certificate to know if there are any unsettled debts on the plots like bank loans.

An encumbrance certificate is another checking document on your plot purchase. It lets you know if the property is encumbered by any legal debt. Get the tax receipts from the owner for further clarification.

Get clarity on when you could get the ownership transferred to your name after making the payment for the property purchase, as there is always a chance of illegal encroachments leading to unwanted issues.

It is very important that you make sure that your purpose of buying the plot is served before purchasing it, which means you need to confirm land use status before purchase. For instance, if you are purchasing a plot with an intention to build a residential building at a later date, make sure you have all the approvals for the purpose. Also, you should check for the conversion norms if you want to convert it into commercial space at a later date.

Buying a plot from a reputed developer has less risk because they ensure to have the proper paperwork in place before selling the property. They also enclose the integrated township with all the amenities needed for a comfortable lifestyle. If you are purchasing a property from an individual seller, utmost care is a must before buying the property to reduce the risk at a later date.

“I wanted to purchase an apartment last year. However, the pandemic made me realise the importance of open and green spaces, the need for privacy and minimal interaction. Hence, I have now decided to invest in a plot,” mentions Sandhya Radhakrishna (32), a software professional from Chennai.

The post Plots: Plotted Developments Showed a Surge in Interest appeared first on GharOffice Blog.