Boom Time for Plotted Developments in India's Real Estate Market
Increasing investor attention towards property development projects in India's real estate sector
By Abhi, The Realty Rogue
India's real estate market is witnessing a paradigm shift, as plotted developments are gaining ground among investors and homebuyers. The conventional preference for high-rise apartments and gated communities is gradually being overtaken by demand for land-based housing formats in urban, suburban, and peri-urban areas.
Let's take a dive into the factors driving this shift:
Fueling the Change
- Craving for Land Ownership: The desire to own land, rather than just built-up properties, is escalating. This surge has been triggered by urbanization and our booming middle class, who pine for more space, flexibility, and long-term value appreciation.
- Post-Pandemic Lifestyle Shift: The COVID-19 pandemic has amplified the demand for plotted developments, as people yearn for homes away from overcrowded city centers. The allure of spacious, semi-urban or peri-urban locations offering more affordability compared to city centers is accentuated by the new normal.
- Affordability and Customisability: As property prices in major metropolises soar, plotted developments provide a lower entry price point. Moreover, the ability to custom-build dream homes according to budget and preferences makes plotted developments irresistible for many.
- Infrastructure Development Gold Rush: Investors are drawn to the potential of long-term gains from plotted developments located near government infrastructure projects like new highways, metro lines, and commercial hubs, which enhance connectivity and bump up the appreciation potential of land in suburban and peri-urban areas.
Supporting Market and Economic Factors
- Vibrant Real Estate Market Upturn: With the Indian real estate sector poised for exponential growth, from a $332 billion market in 2025 to a staggering $1 trillion by 2030, the demand for a diverse range of housing formats—including plotted developments—is on the rise.
- Urban Housing Shortage and Space Starvation: Faced with a massive urban housing deficit and an expanding urban population, the race is on to find housing options that provide space, privacy, and flexibility beyond traditional apartment living.
- Prosperity and Investor Confidence: India’s robust economic growth and sustained GDP expansion bolster purchasing power and investor confidence in the real estate sector. As the sector’s contribution to GDP increases, investments are spreading across diverse segments, with plotted developments increasingly becoming a popular pick owing to their growth potential and adaptability.
To sum it up, the tide is turning in India's real estate market, with plotted developments gaining steam due to urbanization, post-pandemic lifestyle shifts, affordability issues in city centers, and robust infrastructure-led growth prospects. These factors make land ownership alluring for homebuyers and investors seeking space, customization, and long-term appreciation in value.
The change is afoot, and the clock is ticking. So, ready to stake your claim?
The author is a keen observer of the real estate market and the creative director at the Urban Oasis.
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In light of the surge in demand for land ownership and spacious homes, more investors are turning to the finance sector to fund plotted developments, revealing a promising future for property investment in India's lifestyle market. As India's real estate market expands and urban infrastructure improves, plotted developments located near highways, metro lines, and commercial hubs are expected to bring lucrative returns for finance-savvy investors interested in long-term value appreciation.
