By LC Mittal, Director Motia Group
‘Price is what you pay, value is what you get’- this quote embodies all the facets of real estate. Indians have become advanced in property search methods and choice of amenities in their homes and offices, the underlying need when they invest their share of savings in property remains the same and will continue to be so. A land/property is considered valuable only when the appreciating potential continues to show positive growth over the years, accompanied by limited expenditure on maintenance.
This flexibility and feasibility come with one of the rawest real estate segments — plotted developments; if sold by a reputed developer, the credibility quotient is even higher. One of the most crucial factors is that plots offer a better rate of return and attract higher investor demand, with limited risks.
Ideal property transaction in COVID times
In testing times such as COVID, the plotted developments have emerged as one of the most hassle-free investment tools in real estate. If located near a prime hotspot, these land portions in an enclosed space are mediums of quick monetization, as the investors are also in a flexible position to book their share of land and wait for the nearby plots to develop.
Small investors, institutional investors, farmhouse seekers, and gated community enthusiasts, all kinds of demographics with varied interests can readily invest in these developments and begin construction at their own pace, or not begin depending on their expectations from the investment. They also come with an easy exit proposition if left untouched while the scope of appreciation continues.
Popularity in Tier II-III cities
Plots have been the oldest trick in the book, and they will continue to prosper, especially in Tier II-III cities wherein the concept of independent living, yet around a community with ample open spaces and dedicated commercial avenues in close proximity, witness strong demand. Plots are also a good retirement option for people looking to settle back in their hometowns once their professional commitments are completed in metros.
Ever since the pandemic has struck, the new class of millennial buyers has increasingly become cautious about investing in assets and creating their pool of savings. In such requirements, plots are the ideal choice as they can get molded and designed as per the market demand. This particular real estate segment also gives developers from metros a chance to expand their portfolio in non-metros without engaging much capital and labor, which is a win-win for both buyers and developers. Thereby, the credibility of an established name gets associated with these plotted developments, along with the liberty of architecture.