Why is there high demand for residential plots?

There is strong demand for residential plots in metro cities across the country, including Hyderabad. Especially in the Greater Hyderabad area, the majority of people show keen interest in purchasing plots. Among rapidly expanding metro cities in India, Hyderabad stands out uniquely. The city has created a distinctive brand in the domestic real estate sector. Over the past few years, the establishment of global-level companies and organisations in Hyderabad has significantly increased employment opportunities. This, in turn, is boosting the city’s expansion. Additionally, the increased availability of loans for property purchases has further encouraged many people to invest in plots. According to a recent report released by real estate analytics firm PropEquity, Hyderabad ranked first among cities that launched a large number of new residential projects between 2022 and May 2025. Indore and Bengaluru secured the second and third positions, respectively. The report indicates that post-COVID, people are increasingly favouring platted development category properties for purchase. This trend benefits real estate investors as the value of such properties is expected to appreciate in the future, while developers also benefit by quickly converting sales into cash flow. Earlier, property buyers mostly preferred apartments, independent houses, and villas. However, now many are showing greater interest in purchasing developed residential plots. The rapid increase in land prices and the potential for higher returns are cited as key reasons driving the demand for residential plots. PropEquity explained that the ability to buy plots with relatively lower investment, the possibility of quick resale for cash, and the flexibility for buyers to construct homes as per their preferences are positive factors boosting plot purchases. Between 2022 and 2025, around 470,000 new residential plot projects were launched across the top 10 Tier-1 and Tier-2 cities in India. The trend is not limited to big cities alone; even in smaller towns, owning land is increasingly viewed as a valuable investment and a long-term asset, which is contributing to the rise in plot purchases. As availability of land, a key resource for rapid urbanization, becomes limited, buyers are increasingly showing interest in purchasing residential plots. Statistics indicate that among the top 10 Tier-1 cities in India, Hyderabad, Bangalore, and Chennai have seen the development of around 225,000 residential plot projects. Real estate professionals say that the steadily rising demand from plot buyers is fueling the launch of new residential venture projects. Notably, Coimbatore, Chennai, and Surat have witnessed a significant number of new project launches. Since 2022, the total value of launched real estate venture projects is estimated by PropEquity to be nearly Rs 2.44 lakh crore. With ongoing infrastructure projects like the Hyderabad Metro Rail expansion, Regional Ring Road, Regional Ring Rail, and the development of a Future City, experts in the real estate sector are optimistic about a bright future for Hyderabad’s property market.