Some of India's major developers have moved into planned complexes in response to increased demand for plots. It is a dynamic potential for these businesses, as buyer preference is significantly skewed towards established real estate brands. Plotted developments were once mostly offered by smaller developers.
Following the new realities provided by COVID-19, key cities such as Bengaluru, Hyderabad, Chennai, Pune, and Gurugram are seeing significant demand for plots.
Plotted land development projects are becoming more prevalent in the market. People choose to buy plots of land rather than full-fledged houses since they are less expensive. Major developers have shifted their attention from apartment construction projects to planned land development projects due to good market trends and consumer demand. These major real estate developers will construct and market individual plots of land. There are no houses or villas on these plots.
When compared to building huge, expansive home developments, creating and selling tiny plots offers a number of advantages. Planned land development projects have the advantage of quickly monetizing the location. Apartment construction projects take a long time to monetize. A planned development project, on the other hand, would allow you to monetize your land right now. Due to the fast monetization of land, large developers will be able to sell land plots more quickly than apartments. The creation of cash flow will improve, and investments will be exited more quickly than in past eras of house development.
A Win-Win Situation
'Buy land, they don't make it anymore,' said Mark Twain. Land investment is a long-standing practice in India, and COVID-19 has bolstered demand for land as a long-term investment. Some owners are even considering purchasing plots in gated communities to build on and utilize as separate residences in the event of a pandemic. The emergence of the work-at-home culture is also intertwined with this.
Buyers are the demand drivers.
• When compared to built-up real estate, plots are more affordable.
• Patient land investment has the potential for good rewards.
• Proposed infrastructural projects in the city's outskirts present a compelling argument for investing in the land now and reaping the advantages later.
Developers are the demand drivers.
• Plotted development is a clever way for developers to liquidate land banks and raise working cash.
• Minimal capital outlay, lower project execution risks, and a quicker exit strategy.
• Branded developers' planned developments are in high demand.
While a planned development project may be completed in a year, apartment construction takes years. Plotted projects were needed by real estate developers, and some bought property parcels there in the hope that the site would be constructed later; however, their forecasts turned out to be inaccurate. The internal rate of return on a well-planned development project is higher, and the project execution is less risky.
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