Price of plots: A sneak peak
Investing in plots, by far, has always been labelled as one of the assured ‘high-yielding’ financial option. Albeit, apartments and villas witness a lot of takers and cater most of the growing aspiration of property investors in the country, there are a certain section of buyers who prefer the route of ‘investment in plots’, since it guarantees high capital appreciation. As per experts, purchasing of land as an investment to build a home or for a recreational property requires the buyer to remain cognizant of the market value, to safeguard the investment. Given the market reports, buying of land can emerge as a rewarding experience, especially in a city where there is space crunch and the real estate market is skyrocketing.
Factors that determine price of plots
While purchasing of land, it is imperative to take a look at the factors that determine the price of a plot. Below-mentioned is a brief run-down of the factors that influence the price of any plot: · Location- In a well-known or high growth location where infrastructural developments have spurred in the last few years, price of the plots will be much higher in comparison to the neighboring regions. For instance, price of plots in Whitefield, have risen dramatically in the last few years. · Infrastructure- Plots, which are equipped with basic civic infrastructure like electricity, drainage system, water supply, street lights, power, sanitation and mobile coverage, etc. definitely emerge as more appealing to the buyers. Plots in Chembur, on account of infrastructure growth witnessed price appreciation in plots. · Connectivity-The factor of connectivity which includes highways and roads is the prime determinant of the price for any land. For instance, plots in Bhiwadi which offers good connectivity to Delhi and Gurgaon via NH 8 experience a higher demand. · FSI– Determined by local authorities, it has a direct relevance to the price of the plot. The thumb rule is, the higher the FSI, the higher is the space available for construction, as a result higher the value.
Why land over apartments and villas?
It is a known phenomenon that the market value of land keeps on climbing the ladder and this has always generated the interest among the investors. Although, investing in flats yields lucrative returns, buying a piece of land at present guarantees potentially higher returns in the long term. Although the trend of buying apartments is fast catching up in major cities like Chennai, Mumbai, Bangalore, Hyderabad, Kolkata and Pune, vacant plots still attract the attention of a number of investors either for sale or to construct a dream home. Land is a commodity, which cannot be produced in a fixed quantity. Hence, the price continues to increase, though it may vary depending on the city.
Buying of land in 2014
With the scarce availability of land in prime cities of India, land purchasing will become quite an expensive venture. An alternative for growth driver, redevelopment of the existing dilapidated buildings in cities will emerge as the only potential option in 2014. Plots available in the high growth neighborhood or a new market will cater most of the demand of the commercial, residential and hospitality sector. Suburbs, adjacent to such growing neighborhood will witness a growth in the value of plots in the days to come offering a good value to the sellers.
