In the journey of urban planning, plotted developments in India have emerged as a popular choice for homebuyers in India. Owning a plot in India offers a unique blend of affordability, optimized space utilization, efficiency in land usage, and most importantly customization in design and architectural. Unlike a ready-to-move or under construction apartments or villas, plotted development accommodates personalization and freedom to build their dream homes as per their preferences and needs. Parallel to this, plotted development also promotes sustainable living via multiple techniques.

I. What is plotted development?

Plotted development basically means dividing a land parcel into smaller parts designated for independent residential or commercial use. Key features of dividing a vast land into smaller pockets include:

• Strategic subdivision and demarcation of land parcel to accommodate desirable sub-sections
• Providing enough flexibility of space and construction to accommodate customization as per every buyer’s need
• Optimization of land use to promote high density but keeping the design spacious
• Recreational amenities and infrastructure to match the prevalent nature of demand that is inclining towards more facilities within their residence
• Preserving open spaces and promoting sustainable living with various conservation techniques
• Enhance community engagement

II. Plotted India

• The residential industry of India is witnessing a massive shift to individual plotted development. Majorly the South cities like Bengaluru, Chennai, and Hyderabad are moving in this direction with a bullet speed. In fact, renowned developers are catching up with their unique propositions.
• Developers like Sobha, Prestige, Shriram, Adityaram, Ace, etc. are all moving towards this trend. They are acquiring larger land parcels encircling the major residential hubs and their neighbors to launch their plotted development projects.
• Regions like OMR in Chennai, Sarjapura in Bengaluru, and Yamuna Express Highway in NCR are promoting such projects.

III. Trends in India

Plotted development is gaining traction across multiple regions in India. Since covid-19, the concept of “personal space” and “privacy have paced up its momentum. The demand is favorable towards low density projects with hygiene facilities and larger spaces more than smaller apartments of mass projects.

Figure 1.

• The trends show a substantial hike of 15% from the peak covid year of 2022 to 2023 when the market was healing and the market sentiments changes.
• This was majorly triggered due to the extensive demand for privacy, distance, realizing the importance of self-owned homes.
• 2024 saw a decline in both supply and absorption, but the Q1 2025 foresees a up and coming future.
• The demand is dominated by the southern cities of India.

Figure 2 & 3 (L-R)

• The shift in the share of sales in the year 2023-24 when we add “villas and plots” to the universe of units is evident.
• The shares of three primary southern cities Bengaluru, Chennai, and Hyderabad including plotted developments and villas to the mix reflect the dominance of these cities as against the other cities.
• 23% share of Bengaluru increases to 25%, while Chennai’s share increases from 4% to a massive 80% of total units sold
• The south cities, combined, accounted for an 82% share in sales attributable to plots and villa projects.
• Understanding the prevalent need, the developers are also chiming in with plotted development offerings. The share of South cities in launches of plots and villas is a substantial 89%. These cities have correspondingly increased share in total sales comprising both apartments and plotted developments.

 

Figure 4 & 5 (L-R)

• The shift in the launch trends in year 2023-25 has a significant change when villas and plotted developments are added in the mix.
• Like sales, the launches see a dominance of South cities Bengaluru, Chennai, and Hyderabad.

IV. Why is plotted developments gaining momentum in India?

There are multiple reasons for the growth of plotted development projects. Let us see it from dual perspectives.

1. Buyer’s viewpoint:

• The scope of customization: The flagship benefit of plotted developments is the extent of personalization in design and layout of the property. The plot construction enables the owner to put their vision in play. They can opt for an urban construction like villa or penthouse, or a traditional bungalow with porch. The share of open space and construction can also be adjusted as per their personal taste.
• Minimal maintenance: While buying an apartment in a project, the buyer is often introduced to a corpus fund for property upkeep or a bill post possession. The resident is charged for the maintenance of the common space, whether they use it or not. The charges are a substantial share of their monthly expense and often feels like an irrelevant cost if all the amenities aren’t used. However, in plotted developments, the upkeeping of extra space is limited to the occupied land only. The additional maintenance is minimal since plotted projects usually don’t have a coffer of amenities.
• Long-term ROI: The returns on plots has proven to be very lucrative. The appreciation of plots (without construction) is much higher than apartments that go through wear and tear with consequent usage.
• Construction flexibility: A plot when purchased in not bound by a stipulated possession or construction timeline. The construction commencement can be adjusted as per the owner’s requirements.
• Low investment: The initial investment of owning a land is more economical than in apartments. The construction cost can be adjusted as per taste and preference

2. Seller’s viewpoint

• Faster delivery, lower risk: The basic requisite for developing a plotted project is much lower than mega projects. As a result, adherence to delivery timeline is better and quicker. The risk of bearing penalty for delayed delivery is close to nil.
• Easier to sell: There is not much scope of differentiation since the development is basically demarcating a land parcel. The additional amenities work as a sweetener, but the plots stand a fair chance by itself
• Lower Investment: The investment in the construction process is quite low and limited to the extent of amenities the builder is providing.

V. Key elements of the purchase:

Key elements of considerations while investing in a plotted development include:

• Location: in case of no in-house amenities or facilities, proximity to recreational centers, transportation, and infrastructure.
• Developer credentials: a thorough background search on developers past work record.
• Plot size and layout: Ensuring the size, layout, and what is the exact demarcation of the plot as per your agreement
• Amenities and infrastructure: the plotted developments with basic amenities and infrastructure support always work as an added advantage
• Inspection of all clearance documents: verify the clearance deeds, land title, ownership, whether it falls under any special zones
• Permits: Get a defined clarity on Floor Space Index (FSI) and Floor Area Ratio (FAR) and set your construction plans accordingly.

VI. Is the future plotted?

Plotted developments are a breath of fresh air in the traditional real estate wind. Although urban locations are preferred for their infrastructure and convenience, the congestion and genericity are a rising concern for all homebuyers. Investing in a plot and constructing as per your own taste is a long-term dream. This seems to be a perfect time to seek your personal space by investing in plotted developments in India.

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*Data & figure taken from REIS, JLL Research