In recent times, the popularity of plotted development projects has increased. Here’s what’s driving the demand and the things to watch out for
The demand for plots and independent floors has been going up since the last few years, especially after Covid. As work from home became common during Covid, people started looking for spacious accommodations and didn’t mind moving to the suburbs of Tier I cities or smaller towns.
Rising Demand For Plotted Developments
Plotted developments are coming up in Tier II and Tier III cities, and the suburbs of Tier I cities. For instance, Trehan Group, a real estate developer with a major presence in Rajasthan, recently launched plots in Neemrana, an industrial town about 80 km from Gurugram on the Delhi-Jaipur highway. Within a few days of its launch, the company claimed to have sold about 200 out of about 550 plots, ranging between 90 sq.m to 200 sq.m in size.
Hyderabad, for instance, saw the value of some of its plotted properties rising 21 per cent between 2018 and 2021, indicating a sharp increase in the demand for such properties, according to data from homecapital.in, a company that assists home buyers in managing the down-payment for a home loan.
In the north, Gurugram is leading the pack among Delhi-NCR areas, with prices of independent plots rising by 15 per cent between 2018 and 2021, showed homecapital.in data.
Key areas like Gurugram, Hyderabad, Bengaluru, and Chennai saw residential plot values rise by double digits, especially after 2018, according to a report by Housing.com released earlier this year. Compared to the last three years' growth in land prices in these cities, which were in the range of 13-21 per cent, apartment prices have remained range-bound (2-6 per cent), showed the report.
Developers find large land parcels in smaller towns and suburbs, which helps them plan better. “Large, aggregated land gives us the opportunity to develop smart and sustainable cities and it’s time to divert traffic outside congested cities,” says Rishabh Siroya, founder of Legend Siroya, and president-elect Naredco NextGen.
What Is Fuelling The Demand For Plotted Developments?
Experts believe people are preferring plotted developments over apartments due to the flexibility and space they offer.
Low Density: Plotted development projects usually have low population density and offer better control over resources like water and electricity, and more freedom when using amenities such as parks, clubs and play areas. “There is no denying that the pandemic has a role to play in the shifting mindset of homebuyers. Requirements of families changed amid WFH, adopting hybrid culture and e-schooling of children. Now more people prefer independent houses and floors, over apartments in high-rise condominiums,” says Saransh Trehan, managing director, Trehan Group.
Flexibility In Construction: A parcel of land offers you the freedom to design the house in the way you like. It can help you express your individuality and fit your way of life.
Trehan says that an independent plot in a gated project gives you the opportunity to build a separate unit, while the offering the benefits that gated communities have. “It can be more spacious than apartments in multi-storey buildings, and offer more freedom and privacy, with a private terrace and parking space,” he says.
Future Expansion: Apart from providing the freedom to construct a house the way you want, a plotted development also gives the flexibility to add additional levels and rooms at a later stage.
“Investment in greenfield assets in real estate is always a good option if an individual or a company has a long-term vision. Plotted land development is one such avenue which offers many possibilities depending on the location of the land and the time frame for its development,” says Pratik Kataria, director, Sainath Developers.
Things To Watch Out For
The flip side, of course, could be the distance from main city centres as offices are opening up, and the possible lack of adjoining infrastructure such as a public transport system and proper shopping and entertainment avenues.
Also, some of these may have conditions such as the number of floors you can add and the proportion of area on which construction is allowed. It could also become lonelier for you to live faraway but that’s, of course, a personal choice.
"While the distance in KM may look far, but when it comes to time it takes to travel, these locations may take less time than intercity commuting between Gurugram-Delhi-Noida and so on during the office hours. So, many people don’t mind taking a little pain, if they are getting an abode as per their likings that too within their budget," added Trehan.