Average prices of plots across seven major cities have risen by up to 38 percent in the last two and half years with Yamuna Expressway in Delhi-NCR witnessing highest appreciation, according to Anarock.
In its report, property consultant Anarock noted that plotted developments have gained significant traction as an investment asset class in the post-pandemic world.
The top seven cities (Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Mumbai Metropolitan Region and Delhi-NCR) have witnessed new plotted developments supply since 2020, and saw decent appreciation over the last 2.5 years.
As per the research, Yamuna Expressway saw the highest rise of 38 percent in average plot prices to Rs 2,200 per square feet, from Rs 1,600 per square feet in 2019-end.
Greater Noida (West), known as Noida Extension, witnessed a 36 percent rise in average plot prices to Rs 4,500 per square feet in June-end, from Rs 3,300 per square feet by 2019-end.
Plot prices at Neharpar in Faridabad rose 29 per cent to Rs 4,500 per square feet, from Rs 3,500 per square feet by 2019-end.
Santhosh Kumar, Vice Chairman of Anarock Group, said: “Plots have become a hot ticket for property investors on the post-pandemic marketplace. Undoubtedly, well-chosen land offers higher returns on investment when compared to apartments.”
The consultant said that many large developers have forayed into plotted developments and this is no longer the stronghold of smaller, unorganised players.
“With the advantage of branding, plotted developments have become respectable, and most buyers prefer to deal with the bigger names,” it added.
In Bengaluru, the top three micro markets to see land price growth since 2019 are Devanahalli (18 percent), Attibele (24 percent) and Doddaballapur Road (18 percent).
As per the data, in Chennai, Poonamallee saw 22 percent growth in average plot prices, followed by Tambaram with 25 percent and Navallur with 20 percent growth.
In Hyderabad, average plot prices in Medchal, Adibatla and Ghatkesar saw 21 percent, 24 percent and 26 percent growth, respectively.
Howrah in Kolkata saw a 20 percent rise in plot prices, Barasat-Madhyamgram saw a 18 percent increase, and a 24 percent price rise in Garia.
In Pune, the top three micro markets to see plot appreciation are Hinjawadi with 24 percent, Chakan 18 percent and Manjri 18 percent.
Anarock said that prices at Shahapur rose 22 percent, Boisar 18 percent, and Neral 17 percent in Mumbai Metropolitan Region (MMR).
Gurugram-based AIPL Group executive director Pankaj Pal said that residential plots have always remained in demand as the benefits it offers to end users and potential returns that it can generate for investors.
In fact, in Tier-II cities, plotted developments in gated communities are more in demand, compared to Tier-I cities, he added.
“Moreover, in the case of plots there is no depreciation of assets and its price always moves upwards,” Pal said.
Saransh Trehan, Managing Director of Gurugram-based Trehan Group, said the demand for independent plots has gone up significantly after the COVID pandemic as more and more people are looking for independent houses.