Is Plotted Society a good investment?

The increasing purchasing power and improved quality of life are fueling the interest in investing in plotted societies and gated communities, making them a growing trend in our nation, particularly in the outskirts of major cities like Bengaluru, Mumbai, NCR, and others. But is this a wise choice for real estate investment in India or a viable alternative to purchasing expensive apartments in metropolitan areas? To answer these questions, let’s examine the advantages and disadvantages of such investments.

Advantages of Plotted Developments:

1. Potential for very high returns: These plotted villa plots are marketed as exclusive and luxurious, which might be expensive but may offer a very good returns even in short duration.
2. Attractive amenities and security features: Plotted societies often come with amenities such as multiple parks, swimmpools, fitness centers, and security features that may make it a more attractive option for potential buyers or renters.
3. Land will not depreciate: A premium flat may not be valuable for your next generation as it may not hold value but a plot will retain it’s value, even it may give you multifold returns.

Disadvantages of Plotted Developments:

1. High maintenance costs: The cost of maintaining security features, amenities, and other infrastructure can be high, and these costs are often passed on to residents through homeowners’ association fees or other assessments.
2. Away from mainland: Some plotted societies in India may be in far away communities that are disconnected from the main area.

Considerations:

1. Research: It is very important to do thorough research and carefully evaluate the potential benefits and drawbacks before investing in a plotted society in India.
2. Consult professionals: Visiting the community, speaking with current residents, and consulting with a real estate professional or financial advisor can help make an informed decision.
3. Legal Opinion: Always go for proper legal opinion before buying such property, be sure of the builder is genuine and established.

In conclusion, investing in a plotted society in India can have its advantages and disadvantages. There can be another debate whether you should but a flat or plot only for residency purpose. It is important to consider personal preferences, financial situation, and long-term goals before making a decision. Consult your financial adviser for exploring this option.