Covid-19 Boosts Demand for Plotted Developments.

Leading developers have ventured into plotted developments, their offerings in highest demand.

Amidst rising demand for plots, some of India's top developers have ventured into plotted developments. With buyer preference heavily skewed towards established real estate brands, it is a dynamic opportunity for these players. In earlier years, plotted developments were largely offered by smaller developers.

The top cities like Bengaluru, Hyderabad, Chennai, Pune and Gurugram are seeing high demand for plots in the wake of the new realities presented by Covid-19. Some of the leading developers with plotted developments now include DLF Ltd., Mahindra Lifespaces, Raheja Group, Godrej Properties, Century Real Estate, Puravankara's Provident Housing, Shriram Properties, Goel Ganga, TVS and Alpha Corp, among others.

Plot Sizes

The minimum size of marketable plots is as low as 550 sq. ft., and goes up to 10,000 sq. ft. In select projects, larger plots are also available. Plot sizes ranging between1,200 - 2,500 sq. ft. are seeing maximum demand. However, in the southern cities of Bengaluru and Chennai, smaller plots of average sizes 550 - 750 sq. ft. are also generating interest.

Several plotted development projects have also been pre-launched in distant locales of MMR over the past few months. Interestingly, these projects have larger-sized plots than in the southern cities. The minimum plot size starts at 1,600 sq. ft. and goes up to 5,000 sq. ft. on an average.

Plot Prices

The starting price for plotted developments in the top cities is as low as Rs 14 lakh. Plots priced up to Rs 70 lakh currently see the maximum demand, though larger plots are also seeing traction.

A Win-win Proposition

As Mark Twain puts it - 'Buy land, they're not making it anymore.' In India, investment in land is a time-honoured tradition and Covid-19 has further strengthened demand for land as a long-term investment. Some buyers are even considering plots in gated societies and build on and use, as standalone homes are the safest bet in a pandemic situation. The rise of the work from home culture is also closely interrelated here.

Demand Drivers - Buyers

The relative affordability of plots compared to built-up real estate, Potentially good returns on patient land investment, Proposed infrastructure projects in city peripheries provide a strong rationale for invest in land now and reaping the benefits on their completion.

Demand Drivers - Developers

For developers, plotted development is a smart strategy to liquidate land banks for raising working capital. Minimal capital investment, limited project execution risks and faster exit opportunity, Plotted developments by branded developers are in highest demand.

Box

• Bengaluru, Hyderabad, Chennai, Pune & Gurugram see increased demand for plots amidst Covid-19
• Plot-sizes b/w 1,200 - 2,500 sq. ft. most attractive; smaller plots of avg. 550-750 sq. ft. also see traction in Bengaluru & Chennai
• Priced as low as INR 14 lakh, plots are attractive for both investors and buyers with smaller budgets
• Buyer demand, low capital investment, limited project execution risks with faster exit opportunity, good cash flow generation, better rate of returns a big draw for developers as well
• Leading developers have ventured into plotted developments, their offerings in highest demand.

Hits: 287