5 Reasons to invest in gated community plots in Bangalore

Buyers invest in real estate mainly for two reasons- for investment or for self-use. Land is a limited commodity and rapid urbanization is propelling investors to invest in land parcels in Bangalore. Investors & end-users are driving the demand for investment in Gated community plots in Bangalore.

Key reasons driving the popularity of Gated Community Plots are:

1.     Low Capital Investment and Low Maintenance

The price of development sites is lower than the price of a completed home; because upcoming gated communities by Grade A developers are in suburban or peripherical locations of the city and construction cost towards units is not applicable for plotted developments.  Whereas, apartment projects and residential homes are usually available within the city, which is more expensive.

To invest in good, gated community Plots in Bangalore, one needs to have a ticket size of INR 1 Cr. plus. Gated communities from Grade A developers may have additional charges towards infrastructure development, clubhouse access, and others.

Plots are more affordable to maintain compared to build spaces. Common Area Maintenance (CAM) charges for built housing societies are higher compared to CAM for plotted development projects, and in for built spaces incidental maintenance charges including plumbing, electrical, renovations are also applicable.

In Bangalore, the CAM for plotted projects range between INR 2/sqft/month and 4/sqft/per month compared to build spaces (apartment/ villa) which is upwards of INR 4/sqft/ month. Maintenance charges for plotted development includes maintenance of common infrastructure (roads, parks, greenspaces), common amenities (club house, swimming pool, gym and playground, security services and utilities (street lighting, water supply systems and sewage treatment plants).

2.     Ease of Purchase

Buying plots in a gated community developed by a reputed developer can mitigate the risks associated with the title of the land and necessary approvals like land use permission, environmental clearances, building permits and project delays.

Buyers who are looking to buy plots receive possession faster than those who are seeking to own an apartment. The timeline for completion of the plotted project is between 18 months and 24 months depending on the size and the no. of features/amenities they provide.

3.     Flexibility to Build

Plotted developments offer more flexibility to owners as homes can be designed and constructed as per the owner’s needs and timelines. The ability to tailor the property to meet individual requirements enhances its market value, making it a lucrative investment opportunity. Owners have the option to expand or modify their homes in the future without constraints faced in apartment living.

4.     Community, Safety and Amenities

Plotted development often fosters a sense of community, with support, safety and security.

Most of the Gated community plotted developments in Bangalore have modern amenities such as landscaped gardens, clubhouse, gym, swimming pool, sports facilities (indoors and outdoors). These attractive features offer convenience as it is a lot simpler to indulge in recreational activities. This not only enhances the living experience of the people living there but also provides usage to social infrastructure to the owners who have not built their houses yet.

5.     Attractive Return on investments

Land is believed to result in higher capital gains over time than the built structures as build spaces have depreciation associated with construction component.  In addition to this, plotted developments generate higher returns as they are typically located in suburban areas which witness population growth with time, and thus resulting in appreciation of land value significantly.

Moreover, gated communities developed by Grade A developers are targeting effluent buyers and therefore result in development of high-end luxury residences with multiple common amenities. This aspect of the development also helps in higher appreciation of the assets.

In Bangalore along growth corridors, plots in gated communities have clocked annual appreciation of 12 % to 15% for a holding period of 10 years. We expect this ROI to continue in future too.

Conclusion

Gated community plotted developments along growth corridors of Bangalore present a compelling investment option: low ticket size and the potential for substantial future returns. The limited availability of land, robust economy, improving infrastructure and a growing population drive the belief that now is an opportune time to invest in this asset. Growth Corridors of Bangalore include Bangalore North, Sarjapur Road, Old Madras Road and Hosur Road.

Yield Space Team can assist you in identifying the best suitable Real estate Investment and help you to monetize your Real Estate Assets.