Customers’ interest shifting from High-rise Buildings to Plotted Development

By: Rajesh K Saraf, MD, Axiom Landbase Pvt. Ltd. As the buying capacity of customers is strengthening, real estate is emerging as the most preferred sector for investment with projects across various verticals. A major financial choice, especially for first-time purchasers, is buying a home. Purchasers of homes must exercise caution as they invest their hard-earned cash for a stable future. Nevertheless, a wise investment can generate large profits. However, one must remember that any poor or rash decision made while making a large purchase, such as when buying a property, could have unfavourable consequences.

Plots, built-up setups, apartments, independent floors, villas, low-rise and high-rise establishments, all the projects, witness ample response from customers for their offerings. Purchasing an apartment is different from buying a piece of land. Even though both asset classes are very lucrative, there are a number of advantages and disadvantages that distinguish the two types of purchases. Over the years, apartments or high-rise buildings had become the buyers’ choice for the facilities they offered despite the limited space and comparatively lower investment that brought a ready-to-move setup. However, recent trends show buyers have shown a drastic incline towards plotted developments. 

The reasons for choosing plots over apartments are many. However, privacy and the freedom to design your own house of dreams remain on the top. Plotted developments allow the buyers to further develop the plot as per their choice, requirement, budget and availability of resources. It also gives them absolute privacy without the interference of others residing in the same project. Plots are considered a comparatively more profitable investment than other establishments as they can simultaneously be utilised as a passive source of income for multiple purposes. 

On the other hand, an apartment is a pre-built structure tailored to a specific people’s needs. There isn’t much room for customization to meet the needs of each buyer. Apartments offer a slight scope of making alterations in the setup or placement, whereas plots can be designed as per choice and can be laced with all the facilities that might be of use in future. Land values more over time than apartments do. The main reason is that a finite amount of land is available, and its supply cannot be increased to meet the market’s demands. Instead of losing value over time, a land plot does not deteriorate but rather increases in value. The situation with apartments, however, is entirely different. Apartments lose value over time due to the regular maintenance and repairs required as they age.

Apart from the discussion of built setups and plots, plots are categorised into two different segments. Plots are made available to the end buyers under the DDJAY scheme, supporting them with their right to property with the best facilities and regulations that make these buying convenient. However, most buyers prefer to choose plotted developments offered in a secure gated community with all the facilities available in the development and amenities available within reach. These plots also have a number of unique features like parks, dedicated play areas and leisure spaces and other specifications that elevate the project’s overall value. 

Owning a piece of land is an indicator of prestige. Depending on the size of the family and its needs, any building on a piece of land can be created to house a large number of people because there are no physical restrictions. Therefore, it may also be claimed that owning a home on one’s own raises one’s standard of living. Hence, it is always advised to invest in a plot rather than in an apartment that already hosts a number of residents. Plots earn higher returns on investment in the long run than apartments.

Advertisement

Advertisements