Land has the potential to appreciate over time, especially in desirable locations or areas experiencing growth and development. As the population grows and demand for real estate increases, the value of land can go up. Considering this, buyers should know the benefits of investing in plots to make wise decisions.
With increasing urbanisation, the demand for both office and residential spaces has gone up in Indian metros like Chennai, Mumbai, Bangalore, etc. The real estate industry is expected to cash in on this growth boom. As per CRISIL estimates, the sector is likely to grow to ₹65,000 crore by 2024 from ₹12,000 crore in 2019 and is expected to contribute 13% to the country's GDP by the year 2025. Over the last two years, it has managed to clock robust sales owing to pent-up demand, stable prices, benign interest rates as well as certain government incentives. This has made investing in real estate a great idea. Choosing to buy plots would especially be beneficial for newbie investors owing to their affordability and help them enjoy considerable returns on investment in the long run.
Investing in Plots
The recent COVID-19 pandemic has transformed the preferences of modern homebuyers to a good extent. As the prevalence of work-from-home situations has gone up, many young professionals are exploring properties outside crowded areas, and choosing to live in standalone homes instead of apartments. This has led to a high demand for plots in Madhavaram, Tambaram, Thirumazhisai, Porur, and other flourishing areas. Investing in plots in such areas can yield high returns at a relatively lower cost of investment. Moreover, buying a plot means that the investor would enjoy a high degree of flexibility in terms of building a home based on their tastes and budget. The advantages of buying plots are many, some of the major ones are mentioned below: -
Low Investment
Due to the absence of construction costs, the expenses associated with buying a plot of land are lower than buying a residential apartment. It is a good investment option for people on a limited budget. People can choose to buy an affordable plot at a location of their choice and construct a home based on their feasibility.
Freedom of Customisation
A person invests a significant sum of money in their home. Thus, it is imperative that they prioritise having a residence that meets their lifestyle. This can be achieved by purchasing a plot of land. Plots are like a blank canvas on which you can build a house of your dreams. You can design its layout per your personal preferences and the needs of your family members.
Appreciation Over Time
The supply of land is limited but its demand keeps increasing with time. This discrepancy between supply and demand leads to increased price points. Purchasing plots purely for investment purposes allows investors to enjoy healthy profits.
Plots in Tambaram, Madhavaram, and other well-developed regions can provide a high rate of returns. As long as you have purchased a plot of land in an area with a good development scope or infrastructure, its value is likely to appreciate considerably over time. As it provides almost guaranteed high returns at relatively low costs, the purchase of plots has become an increasingly popular investment avenue in India.
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