Plotted developments

Don’t be afraid to take the plunge into buying built homes, for they come with a set of advantages, writes Mehtab Khan.

Owning a plot has always been the fascination or fond investment for a large section of the population. No income group shies away from investing or owning a piece of land. Since land is also one the oldest, conservative and traditional forms of investment, it is often accepted  and easily understood. 

Land is considered precious commodity. And plotted developments have become popular. Not only are there many land developers, but this field has had enough gusto and opportunity to have pulled in the largest of property developers. 

Plotted developments have come to be seen as a venture with a quick turnaround time and good profitability for developers.Today, plotted developments come loaded with amenities, like a clubhouse, swimming pool, tennis court, joggers track, children’s play area and the like. It is in most cases, like the luxury of a villa development minus the villas. A well-located development with good connectivity to highways and main roads always ensures a steady capital appreciation of such plots.

Since obtaining approvals and development for plotted layouts is easier when compared with a multi-storied apartment complex or a villa development it is a relatively easier space to be in and considering the demand it also is a lucrative one. Projects like these have lower execution risks involved and reduced project delays, and are seen as a quick exit model.

Preferred locations for plotted developments are mostly the suburbs. Popular areas are extensions like Whitefield, Sarjapur road. Chikkatirupathi, Budhigere, Hoskote, Narsapura and Malur, up to Kolar and beyond; Hosur Road, Electronics City ,Attibele, Chandapur, Devanahalli, Nandi Hills area, Doddaballapur, Chikkaballapur, Mysore road, Bidadi and Kanakapura road. These areas come under governing bodies like BDA, BMRDA, BIAAPA, BMICPA,DTCP, MTP, and KUDA.

The popularity of plotted developments is due to various reasons: l Plotted developments mostly do not require a huge capital investment and most of them are approved by banks and financial institutions, so loans are easily available. Typically, the entry level can be as low as Rs six lakh and go up to Rs 30 lakh for a 1200 sq. ft. plot.

l These projects are mostly seen as secondary or tertiary investments for the seasoned investor who is well-versed in the field. 

It is ideal for first-time property buyers, who would like to start with a low capital investment.

l A plotted development offers the flexibility to design of the house as per one’s wishes.l You can build your own house, yet enjoy the comforts of gated community.

There is no difference in the actual measurement versus actual plot. You get exactly what is described in the papers. Unlike an apartment, there is no confusion between built up and carpet areas.

l There is mostly no risk of commercial or illegal developments next to the plot you own or in the whole community for that matter, because these communities are controlled by the developers themselves with strict guidelines and bye-laws. They are later handed over to the association, which becomes the governing body of the society and looks after the interests, upkeep and maintenance of the community.

l Capital appreciation on plots like these is upbeat and healthy.

l There is no urgent need to construct on the plot, hence there are no maintenance issues. Besides, maintenance costs are mostly negligible.

It’s always advisable to choose a development which has good connectivity to main roads and highways. Projects in the proximity of an existing development like a villa project, a good residential project or a commercial development or an upcoming infrastructure project will add value to the project and will eventually end in prices firming with a healthy capital appreciation.

Plotted developments today are nothing less than an affluent villa community. There are many plotted developments, which have today become shining examples of  how a well-designed, well-planned project can transform into an affluent neighbourhood with villas, houses and mansions, complete with clubhouse, swimming pool, well-maintained roads, parks for children, supermarkets, ATMs and the like.

The main concern regarding plotted development was the issue of getting clear titles for the land. But with many new organised players stepping in, these issues can be put to rest. The downside of a plotted development is that it takes up a lot of land mass, unlike a vertical development. Because of this reason, many urban planners, architects and environmentalists have been averse to the idea of plotted development.
(The author is managing partner, Skyblues Estates, Bangalore)