Plot or Flat What makes for a better investment option

6th June, 2019

A home buyer or investor normally falls into the dilemma when it comes to taking a decision whether to invest in Plot/Land or a Flat/Apartment.

Buying an Independent Land for Residental or Commercial means sovereign choice to build a house depending on one’s own requirement and constraints. On the other hand, a flat/apartment buyer does not have permission to alter external elevation, color and size of a constructed area as per Government Authority Rules.

A comparative analysis between Land/ Plot and Flat/Apartment will make it easier for you to take a guided decision so that you can make your Investment in the right direction and make a fortune.

Plot Vs Flat: What makes for a better investment option?

A comparison between Plot/Land Vs Flat/Apartment investment:

Decision Making Factors	Plot/Land	Flat/Apartment
Cost	Depends on locality, size, and availability of space and Market price of construction material.	Depends on locality, services, accessibility, size, design and. You pay a Premium extra money for developer's brand, Floor Prime Location Charges.
Value Appreciation	With space availability vanishing quickly in every city, Land Price is expected to appreciate very quickly. The flexibility of option to build as per future requirement helps the cost of land and property to increases very fast.	A flat has a limited lifespan, so its value has a diminishing effect. After a certain period of time, there is stagnancy in the growth. Lack of flexibility in use, modification, and expansion is a hindrance to a quicker growth in Price w.r.t land
Risk	Land is not prone to disadvantages on Quality, Possession delay by Builder. You can construct a home of your dream according to your budget and choice, quality and design, facilities…Schedule. To your complete satisfaction and value for your money.	The delay in possession by the developer is one of the most common problems. Due to this, you could be paying heavy EMI charges. Quality is often compromised by the developer to control the cost and meet the deadline so the life of flats gets reduced. So you do not have mental satisfaction.
Liquidity and future prospect	Land is always in great demand. The value normally appreciates immediately due to zero depreciation on land.	The depreciation on construction reduces the growth rate, therefore its value grows at a diminishing rate.
Budget	Sell your Plot when the Price sores. If you want to construct your own house, you can do so according to your Plan and Budget.	Flat Builders ask for extra money than that initially projected on account of the increased flat area leading to mental harassment and distortion of your budget.
Future plan	With vacant land, you will have many options like selling it, building your house, building commercial property or convert it into farmland.	The sense of liberty is limited with Residential Properties like apartments or houses.

Buying Property of Ultra Luxury is one of the most lucrative forms of business. However, to benefit from it you need to factor in the pros and cons of investing in both Plot and Flat as reflected above.

Thanks.