Twist in the Plot: Rising Demand for Land Following the Pandemic
The real estate segment showed exceptional tenacity in the year 2020, and it continues in 2021 as well. Last year witnessed an unprecedented patch during the lockdown but as soon as things started to open up, the segment clocked a great rebound. The residential segment has been the key driver in this rebound phase. An interesting trend that has emerged from the pandemic is the rise in demand for residential plots.
What is driving the current demand for plots?
Residential plots were always a top-of-mind option for homebuyers as they offered a number of advantages. However, due to cost considerations and other factors, most homebuyers opt for apartments. According to a report by Square Yards research, the demand for plots increased by a whopping 50 per cent in Oct-Dec 2020 as opposed to the previous quarter.
This pandemic has given homebuyers ample opportunity to weigh in their choices and now more people are inclined towards a plotted property. As per a FICCI-ANAROCK report, there has been a jump in demand for self-owned houses as it is believed that they offer better social distancing.
With the demand increasing, many builders are eager to get on the bandwagon and provide the homebuyers with plenty of options to choose from.
Here are some of the reasons why homebuyers are favouring plots currently.
Build to suit concept
People have many aspirations with regards to their dream home. Investing in a plot offers complete freedom to design their home in a unique way. Every last detail can be customised. This is becoming increasingly popular among buyers. People can also build according to their need. So, they may decide to construct the first two floors initially and later expand when they have more resources or when they need more space.
A plot offers greater flexibility. It can be sold off easily whenever there is a pressing need. It can also be easily expanded when needs multiply or family size increases. It can also be redesigned to reflect changing trends.
Easy to liquidate
Real estate is an asset for most people. It is an investment that can be liquidated if needed. In terms of liquidation, plots are easier to sell than apartments.
Not only are plots easier to liquidate, they offer better ROI over a period of time. As there are no depreciating elements in a residential plot, owners can get the full appreciation value of the land when they are trading it for another property.
Homebuyers incur lesser costs and property tax on residential plots than other properties.
The rising demand for this segment is encouraging more builders to enter the segment. As a result, homebuyers are in for another advantage. They don’t have to haggle with various contractors and oversee the construction. All they need to do is finalise the plans and be assured that the builder will give them what they have set out for in the cost that they have approved in a stipulated time frame. In addition to this, there are lesser risks involved when one buys a residential plot in a gated colony through a builder of repute.
All these factors are driving the mindset shift of people towards plots and this trend is expected to continue for the next couple of years.
The author is the CEO of Axis Ecorp.
DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.