Why Investing in House of Abhinandan Lodha Plots Is a Smart Decision?

Abhinandan Lodha Plots for sale Anjarle

Did you know that India’s real estate sector is projected to reach a market size of US$ 1 trillion by 2030 and contribute 13% to the country’s GDP by 2025? In fact, in the first nine months of FY22 alone, the market saw over 1,700 acres of land transactions in major cities.

While residential and commercial projects have dominated the real estate landscape recently, investing in plots remains a strong contender. This trend became particularly evident after the pandemic, as real estate emerged as a secure asset class, leading to a significant increase in demand.

Major residential and commercial developers have been acquiring large parcels of land to meet this rising demand. This surge in activity has had a notable impact on plotted land prices, which have risen between 19% and 60% in key markets such as Delhi NCR, Mumbai, Hyderabad, Bengaluru, and Pune.

Reflecting this trend, micro-markets in NCR have experienced the highest land appreciation since 2019. Notably, plots along the Yamuna Expressway have seen average prices soar by 38%, climbing from INR 1,600 per square foot in 2019 to INR 2,200 per square foot by the end of 2022.

The demand for plots on the Yamuna Expressway is further fueled by aggressive infrastructure development, including the upcoming Noida International Airport. This has prompted both investors and end-users to increasingly consider plotted investments.

Let’s dig deeper into the details of plot investments and explore the factors that make them an excellent choice in real estate.

Why Invest in a Plot?

As India’s real estate market experiences significant growth, it is expected to evolve into a multi-faceted sector by 2047, with plotted investments shining brightly. Investing in plots is often associated with higher potential returns compared to ready-to-move-in or under-construction properties, making it a compelling option for those seeking a secure financial future.

Why Investing in Plots is a Smart Move

If you’re looking to make a savvy real estate investment, plots offer several compelling advantages that make them an excellent choice. Over the past two decades, land investments have outperformed even equity instruments and mutual funds in terms of capital appreciation. Many young professionals are now turning to plots as a secondary investment, particularly in fast-growing markets like Noida, Lucknow, Pune, and other emerging urban centers.

Higher Capital Appreciation Potential

One of the primary reasons to invest in plots is the potential for significant capital appreciation. As land is a limited resource, its value tends to rise steadily over time, especially in areas with rapid urbanization and population growth. This appreciation can outpace the gains seen in other asset classes, making plots an attractive option for those seeking long-term wealth creation.

Better Resale Value

Plots often command higher resale values compared to constructed properties. Since the condition of land remains largely unchanged (apart from natural factors like weather or erosion), and land supply is limited, it creates a competitive market that drives up appreciation. This combination of factors contributes to plots having a higher resale value than built-up properties.

Flexibility of Usage

Investing in a residential or commercial plot offers unparalleled flexibility in terms of usage. You can choose to build on the land, sell it as is, or even lease it out to generate rental income. This versatility is a unique advantage of plot investments that sets them apart from other real estate options. Agricultural and farming land, however, may have more limited usage flexibility due to their inherent purpose.

Low Maintenance Costs

Plots require minimal maintenance compared to apartments or houses. The upfront costs are typically limited to fencing, hiring a security guard, or occasional mowing. In contrast, constructed properties demand much higher maintenance expenditures, which can increase exponentially for premium-class developments.

Increased Transparency

The real estate sector in India has witnessed significant improvements in transparency and accountability, thanks to the Real Estate Regulation and Development Act (RERA). Investing in plots from a developer, builder, or registered society provides additional safeguards under RERA. However, it’s important to note that RERA regulations apply only to builders and developers. When dealing with individual sellers, thorough due diligence by the buyer is essential.

Lower Entry Barriers

Purchasing a plot is a more straightforward process compared to buying an apartment. With a plot, you are essentially acquiring a parcel of land, with minimal quality checks required. The primary focus should be on verifying the documentation, as there are fewer physical attributes to scrutinize compared to a constructed property.

Greater Affordability

When you buy a plot, you are paying for the land itself, without additional costs for shared spaces, maintenance fees, parking, or other amenities that come bundled with apartments. This makes plots a more affordable option, all else being equal.

While investing in plots offers numerous advantages, there are a few important considerations to keep in mind:

Financing

Securing a loan for a plot purchase can be more challenging than obtaining a home loan. Plot loans or land loans are available for both residential and commercial plots, but not for agricultural or farming land. It’s possible to get a home loan on a residential plot after it has been purchased, but the plot must be within the municipal limits of the lending bank. Plots from government agencies are often preferred by banks.

Taxation

Unlike built-up properties, plots do not provide immediate tax benefits. A vacant plot without any construction will not offer tax advantages. However, if you plan to build a house, villa, or apartment on the plot, you may be eligible for exemptions under sections 80C and 24 of the Income Tax Act.

Zoning Regulations

The zoning laws governing residential and commercial plots vary based on local authorities and the nature of development. For instance, a commercial plot on the Yamuna Expressway may have different height restrictions compared to a plot near the Noida International Airport, where air traffic considerations come into play.

As India experiences rapid urbanization and a growing need for office and residential spaces, the demand for land and plots is scaling up rapidly. The exceptional real estate growth witnessed in cities like Gurgaon, Noida, Bangalore, Pune, Mumbai, and Delhi underscores the fact that land assets will continue to be in high demand, making them a smart long-term investment choice.

For more information you can check out our website- Lodha HoABL

1 thought on “Why Investing in House of Abhinandan Lodha Plots Is a Smart Decision?”

  1. Investing in House of Abhinandan Lodha plots seems like a smart decision due to their prime locations, promising future development, and potential for high returns. The brand’s reputation for delivering quality projects adds further value, ensuring that these plots are not only secure investments but also offer a luxurious lifestyle. The blog effectively highlights key factors like strategic positioning, long-term growth prospects, and trusted construction, making it an appealing option for potential buyers looking for both luxury and investment potential.

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