Chennai has become one of the most sought out cities for real-estate development today. The city has been identified as one of the top 12 cities in the globe as one of the potential real-estate growth. While the residential segment has comparatively been moving at a slow pace due to socio-economic factors, nevertheless there is a steady demand for vacant approved plots in the city. Keep in mind, that real estate development is highly impacted by the political and economic factors of the country and hence the rate of development or sales will also change accordingly.
Demand for DTCP Approved Plots
Investing in vacant plots means the need to have a liquidity factor. This can become a constraint sometimes with changing times and hence the pace of investment will also be different. There are different markets to tap into such as the small and medium segment markets, which still seem on the rise for investment and depending on the location combined with other surrounding factors, impacts demand and affordability. This demand, not surprisingly, is spurred by the rise in the salaried class with a higher purchasing power. Moreover, real-estate development in India is considered more of an investment for the future of the children due to its liquidity value and perceived higher returns over a considerable period of time.
Investments in suburbs like Oragadam and Sriperambadur indicate a rise not because of good marketing, but also because these are DTCP approved plots which clears legal hassles, makes land more valuable for buying and selling. On the other other hand, plots that are still not regularized seemed to have taken a comparative beating because of the numerous problems involved with ownership, validity of the land, and the threat of losing out on an investment that has the potential to turn into a legal tussle for lack of clarity. The investment is also high from non-resident Indians, and primarily the IT sector which has pushed competition among land developers. Depending on the location, there may also be a preference for individual houses or apartments. For instance, in the micro-markets, there is a preference for building individual homes as opposed to building high rise apartments.
Builders have also recognized the potential for developing vacant lands and now offer attractive real estate options to landowners where they are given apartments in return for allowing the builder to build land. However, this is dependent on a case to case basis and the terms and conditions agreed between both parties. Investing in land is comparatively much more economical than investing in an apartment due to the low insurance pay and property tax cost. Utility bills are non-existent.
DTCP approved plots have greater advantages also because of the flexibility in norms and seen a greater appreciation for Panchayat approved plots. Further, plots do not have a need for labour as opposed to construction, which is labour intensive. Today, such plots even enjoy resale value and maintenance offers from land developers. You can also look up the websites for a list of DTCP approved plots< status of other plots and avail free advisory services for transparency and clarity.