22 , September , 2022
By: Dr. Niranjan HiranandaniOwning a piece of land is a precious investment which fosters multifold rise in returns. The appreciation of the value of the plot in a progressive location with seamless infrastructure drawing a last-mile connectivity will result in an uptick in the price growth curve. Plotted developments along the transit corridor will garner traction amongst the industry players that will lead to exponential return value. Plotted land is a low capital investment instrument for the first-time investor class. The industry is currently witnessing a gradual but stark shift towards investment in ownership of plotted land backed by media reports stating an uptick in land investment share.
An auspicious investment season commences with the onset of Ganesh Chaturthi followed by Onam, Dussehra, Diwali, Christmas, and New year. It is an ideal time to seal a value proposition investment deal. One can prefer to choose to invest in a plot of land on the upcoming peripheral transport hubs, as it will span out into a flourishing development by the near future. This offers an early mover advantage with an increase in price as well as prove to be a safe bet investment asset. The plotted development in metro cities bears a hefty price tag and also non-availability of large tracts of land due to its paucity. Thus, emerging peripheral corridors serve as the best choice to invest in plotted development.
Post-Covid pandemic, homebuyers’ inclination towards spacious and flexible living in self sustainable ecosystems has picked up steam. The demand for gated communities that offer personalized living experiences and arrays of recreational amenities enhances the social-entertainment quotient. This brings ease of living in hybrid work culture and optimizes the digital avenues. Plotted development in an integrated township offers a holistic lifestyle with vibrant habitat, well-laid civic infrastructure, security, organized facility management, retail, daily conveniences, and commercial offices all in proximity. This enhances the holistic quality of life and revitalizes the wholesome living experience. The plot of land can be made available in varied sizes and prices to benefit one’s financial goals.
The plotted land-buying needs thorough due diligence for legally attested documentation, clear title, agreement of sale, and ownership registrations to ensure a smooth process of buying. It offers the flexibility of choice to buy plotted land and build a villa, develop an organic farm, or rent out the bungalow for optimized financial benefits. Tax exemption is permitted on loans availed for buying a plot and then constructing a house. Also, no GST on ready to register plots of land is an additional benefit to be considered.
Investors can consider plotted land as a long-term speculative asset if chosen prudently with an organized and branded developers. The media reports reveal 7% per annum CAGR growth since 2015 across key eight property markets for plotted land. It is reckoned that plots have generated higher capital returns in India, since land remains a favourable investment asset. Hence, the upcoming festive season is pivotal to grab the right investment opportunity in the plotted development across the promising location.
