Rising Land Prices Drive Homebuyers to Plotted Developments
As land prices in major cities continue to climb, homebuyers are increasingly opting for plotted developments, which offer strong value appreciation, enhanced adaptability, and the enduring worth of land assets.
Real EstatePlotted DevelopmentsLand PricesHomebuyersInvestmentReal EstateJul 23, 2025
In response to increasing customer interest, developers are launching branded, fully-equipped plot communities featuring comprehensive amenities, verified land titles, and complete infrastructure. Second-home purchasers particularly value land as a future investment, appreciating the flexibility to construct at their convenience, avoid built property depreciation, and gain from natural land value increases.
"Plotted developments help real estate developers to diversify risk and take advantage of lower development costs, faster construction timelines, and increased cash flows," said Samantak Das, chief economist and head of research at JLL India. "Developers are diversifying into this format due to faster turnaround times, quicker cash flows, and growing investor confidence."
He noted that 944 acres were acquired in the March quarter, with 20% allocated for plotted developments. JLL India reports that developers purchased over 2,300 acres across 23 cities in 2024, with 38% designated for plotted or low-rise residential projects. Numerous national property firms are expanding their plotted development operations.
Sumadhura and Assetz Group, recognized for large township developments, are investing substantially in this sector. "Land appreciates faster than built-up units, especially in the outskirts of a city, and with today's buyers looking for sustainability, long-term wealth creation, and freedom in design, plotted developments are gradually becoming a natural alternative choice," said Sunil Pareek, executive director at Assetz, which has plotted development projects in Bengaluru.
Market data shows that plot prices have doubled in cities like Bengaluru, Pune, Hyderabad, and NCR's outskirts over four years. In Bengaluru's Sarjapur and Devanahalli areas, plotted land costs ₹5,000-₹8,000 per sq ft, varying by location, developer, and infrastructure. Whilst land acquisition and financing have traditionally been more challenging than apartments, reputable developers offering Rera-compliant projects have enhanced transparency and legal processes, attracting more institutional and individual investors.
For buyers, plotted developments offer multiple benefits beyond value appreciation. These include zero maintenance fees until construction begins, absence of shared owner obligations, and complete autonomy in home design.
Frequently Asked Questions
What are plotted developments?
Plotted developments are residential projects where developers sell individual plots of land to buyers, who can then build their homes according to their preferences. These developments often come with verified land titles and complete infrastructure.
Why are plotted developments becoming popular?
Plotted developments are popular due to strong value appreciation, enhanced adaptability, and the enduring worth of land assets. They offer buyers the flexibility to construct at their convenience and avoid built property depreciation.
How do plotted developments benefit developers?
Plotted developments help developers diversify risk, reduce development costs, and achieve faster construction timelines and increased cash flows. They also attract growing investor confidence due to their transparency and legal compliance.
Which cities have seen the most significant increase in plotted land prices?
Cities like Bengaluru, Pune, Hyderabad, and NCR's outskirts have seen plot prices double over the past four years. For example, in Bengaluru's Sarjapur and Devanahalli areas, plotted land costs range from ₹5,000 to ₹8,000 per sq ft.
What are the benefits for buyers in plotted developments?
Buyers in plotted developments benefit from zero maintenance fees until construction begins, absence of shared owner obligations, and complete autonomy in home design. Additionally, they can enjoy the value appreciation of land assets over time.
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