Investing in Plotted Development Projects near Mumbai: A Guide
Several real estate developers have launched plotted development and villa projects near Mumbai, offering a new investment opportunity for buyers.
Plotted DevelopmentVilla ProjectsReal EstateMumbaiInvestmentReal Estate MumbaiSep 06, 2024
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.
When it comes to investing in plotted development or villa projects, there are several things to keep in mind. Firstly, it is essential to check the ownership title of the land. One should also check if the land is agricultural or non-agricultural.
While investing in land, one should understand the difference between agricultural land or non-agricultural land. We need to be doubly sure about the ownership title of the project. In fact, investors should get the legal due diligence of the project done before investing their money.
According to experts, investors can expect reasonable returns from a plotted development asset. Prices of plotted development projects have appreciated 4X in the last six years. We foresee this trend to continue over the next few years.
Infrastructure developments in MMR have led to increased interest among investors, especially for areas such as Manor-Palghar, and Kasara-Igatpuri. Cities like Pune, Bengaluru, Hyderabad and even NCR have seen considerable interest in plotted development projects.
Land has appreciated on average in India by 18-20% on a per annum basis whereas appreciation for residential properties hovers around 10-12% on an average across India. The thrust on infrastructure development - where metro cities are being connected to tier-2 and tier 3 cities and towns - has ensured this growth.
Frequently Asked Questions
What is plotted development?
Plotted development refers to the development of land into individual plots for sale.
What are the benefits of investing in plotted development projects?
Investing in plotted development projects can provide reasonable returns, with prices appreciating 4X in the last six years.
What should investors check before investing in plotted development projects?
Investors should check the ownership title of the land, whether the land is agricultural or non-agricultural, and get legal due diligence done before investing.
What is the current market trend for plotted development projects?
The market trend for plotted development projects is positive, with increased interest among investors, especially for areas such as Manor-Palghar, and Kasara-Igatpuri.
How much appreciation can investors expect from a plotted development project?
Investors can expect reasonable returns, with prices appreciating 4X in the last six years, and an average annual appreciation of 18-20%.
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