- Open plot or layout?
- Should invest on empty land or a house?
- These are questions among many people investing in real estate
There are many avenues for real estate investments like open plots, apartments, commercial spaces, and retail spaces. However, many people wonder which option yields the highest returns. Beyond just returns, the safety and security of the investment in real estate are also very important. Many consider whether buying an open plot and selling it after some time will bring good profits, or if investing in a house will provide better returns. Experts in real estate economics suggest that investing in houses is generally better than investing in open plots.
Real estate experts say that in areas with all basic amenities, you can buy an apartment flat at nearly half the cost of purchasing land. In Hyderabad’s localities like Madhapur, Kondapur, Kokapet, and Gachibowli, land prices range from at least Rs 1 lakh to Rs 1.5 lakh per square yard. So, buying a 200 square yard plot would cost around Rs 2 to Rs 3 crores. In comparison, an apartment flat in the same areas costs between Rs 1 crore to Rs 1.5 crores. For this reason, experts recommend buying a house over an open plot.
Reflecting this trend, developers and construction companies have started launching apartment and individual house projects in suburban areas, creating growing demand. Reports also show that in major cities like Delhi, Pune, Bangalore, Hyderabad, Chennai, Kolkata, and Ahmedabad, buyers generally prefer purchasing flats in apartments rather than open plots.
Experts advise exercising great caution when dealing with open plots, as there can be legal issues as well as concerns regarding land security. On the other hand, when buying a flat in an apartment, banks usually provide home loans, and owners can earn monthly rental income. Besides security, apartments offer common facilities like power backup, car parking, clubhouses, gyms, swimming pools, and gardens, which attract many buyers.
In big cities like Hyderabad, land scarcity and intense competition have driven up land prices, leading to strong demand for limited plots in prime locations. Although open plots might offer higher returns, considering factors like higher investment and security concerns, experts say investing in flats is a better option.
