A Guide to Investing in Plotted Development Projects near Mumbai
Real estate developers like Rustomjee Group, Godrej Properties, and House of Abhinandan Lodha have launched plotted development and villa projects in areas like Lonavala, Khandala, Dapoli, and Alibag. Here's what you should know before investing in such p
Plotted DevelopmentVilla ProjectsReal EstateMumbaiMaharashtraInvestmentReal Estate PuneSep 06, 2024
These include Rustomjee Group, Mahindra Lifespaces, Godrej Properties, Wadhwa, House of Abhinandan Lodha (HoABL), Arihant Superstructures among others.
Godrej Properties has launched a project named Godrej Woodside Estate on Karjat Khopoli Road near Panvel where it is selling plots sized between 1,200 sq ft to over 3,000 sq ft in the price range of ₹54 lakh to over ₹1.35 crore. Rustomjee Group recently announced its first plotted project in Kasara Ghat- a three hours drive from Mumbai with the launch of 462 villa plots starting at ₹59 lakh.
Wadhwa Magnolia by Wadhwa Group has also launched a plotted project in Panvel, Navi Mumbai having last transaction price of per sq ft price of ₹6,500, as of June 2024. Mahindra Meridian by Mahindra Lifespaces Group has launched 26 plotted units at a price of ₹2,060 per sq ft (last transaction price as of June 2024) in Alibag near Mumbai.
Mumbai-based Kalpataru Limited has launched 240 units at a price of ₹1,817 per sq ft (last transaction price as of June 2024) in Karjat- a second home destination near Mumbai. HoABL has launched 1,086 units at a price of ₹1,596 per sq ft (last transaction price as of June 2024) in Neral- foothills of Matheran near Karjat, according to the data of CRE Matrix.
Raigad district that covers areas such as Panvel, Karjat, Khalapur, Khopoli, has witnessed launches of 66 plotted development projects comprising 7,024 units and 36 villa projects with 981 units since 2019, according to the data of provided by CRE Matrix, a real estate data analysis platform.
Majority of buyers who have invested in plotted development and villa projects are in the age of 25 to 45 years. These are primarily from Mumbai, Thane, Pune, Hyderabad, Palghar, Nashik, Nagpur, Jaipur and Jodhpur, data shared by CRE Matrix showed.
Prices of these plotted developments coming up in and around Mumbai start at ₹50 lakh and can go up to as high as ₹2 crore if not more, said local brokers.
There has been a surge in plotted development projects post Covid-19. Infrastructure development across cities has also led to the growth of this segment. The roll-on-roll-off (RoRo) services connecting Mandwa near Alibaug with South Mumbai and the Atal Setu - a 22 km long sea bridge connecting Mumbai and Navi Mumbai - have led to several plotted development projects getting launched in areas such as Alibag and Dapoli.
The Mumbai-Pune Expressway Augmentation project has encouraged investors to put their money into second homes in Lonavala and Khandala, said experts.
People interested in investing in plotted developments or villas should check the ownership title of the land. They should also check if the land is agricultural or non-agricultural. \
Frequently Asked Questions
What is a plotted development project?
A plotted development project is a type of real estate project where a developer sells plots of land to buyers, who can then construct their own homes or buildings on the plot.
What are the benefits of investing in a plotted development project?
Investing in a plotted development project can provide reasonable returns, as the value of the land can appreciate over time. Additionally, buyers can construct their own homes or buildings on the plot, providing more control over the design and construction process.
What are the risks associated with investing in a plotted development project?
There are several risks associated with investing in a plotted development project, including the risk of the project not being completed on time, the risk of the developer not delivering the promised amenities, and the risk of the land being affected by external factors such as natural disasters or changes in government regulations.
How do I check the ownership title of a plotted development project?
To check the ownership title of a plotted development project, you should verify the documents such as property card, 7/12 extract, property tax bills, and water connection bills. It is also recommended to get the legal due diligence of the project done before investing your money.
What are the tax implications of investing in a plotted development project?
The tax implications of investing in a plotted development project include the payment of stamp duty, registration charge, property tax, and water tax. Additionally, short-term and long-term capital gain tax (LTCG) liability may also arise if the investor decides to sell the property.
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