Skip to main content

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 favoring 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 customized. 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. 

 

Flexible

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.

 

Better appreciation

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.

 

Cheaper maintenance   

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 finalize 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. 


Originally Published at :- https://www.outlookindia.com/outlookmoney/amp/real-estate/twist-in-the-plot-rising-demand-for-land-following-the-pandemic-8180




Labels

Labels:
Location: Panaji, Goa, India

Comments

Post a Comment

Popular posts from this blog

Shifting Focus From Metro Cities to Tourist Destinations : Aditya Kushwaha

  While the COVID-19 has by and large dented the confidence level of the real estate developers, Aditya Kushwaha, CEO & Director of Axis Ecorp believes there are a silver lining for the players who are forward-looking in their approach. In an exclusive interview with Track2Realty, Kushwaha asserts that the Work From Home trend would shift the focus from top metro cities to open spaces in and around the tourist destinations. He, therefore, urges the government to look at the Holiday Home segment as a priority sector. Ravi Sinha: 2020 has generally been a bad year for the sector. Has there been any positive developments that bodes well for the year ahead? Aditya Kushwaha:  The real estate sector was already in bad shape before the Covid-19 pandemic, which has only added to the troubles of the distressed industry. April and May were probably the worst months when the economy was broken badly, however recently there has been a good spike in the recovery of the real estat...
Post a Comment
Read more

Demand for Holiday Homes Gains Traction Amid Pandemic

As the pandemic has significantly impacted the operations of businesses and people's working model, housing preferences also have changed and the demand for holiday homes or second homes has increased in the past few months. According to Aditya Kushwaha, CEO & Director Axis Ecorp , the need for a perfect balance between work and personal life has fuelled the concept of a weekend retreat in a holiday home.    "Due to the COVID-19 pandemic, the concept of a holiday home or a second home has gained widespread acceptance. With most of the corporate professionals working from home, geography is no longer a constraint," he said. He also noted that from the investment perspective, second homes in non-metro cities are a relatively safe investment option with higher capital appreciation compared to homes in metros, especially during COVID-19, when alternative options such as mutual funds, shares have seen diminishing returns. These properties can be rented out to home-stays an...
Post a Comment
Read more