Why Are Plotted Developments and Vacation Homes Becoming Increasingly Popular With Both Consumers and Developers in India?

Plotted Developments and Holiday Homes Gaining Traction in India

Corporate real estate developers across Indian have recognised the high value of plotted developments and vacation properties, and are increasing their investment in this segment to provide purchasers with more options and greater transparency.

With rising demand for plotted developments and independent houses in Mumbai, corporate and established developers are increasingly entering this market segment to provide homebuyers with more transparency and better options.

This has resulted in an increase in plotted development and vacation home projects in the outskirts of tier-1 cities and in secluded and scenic areas close to metro areas.

Corporate developers such as Mahindra Lifespaces, The House of Abhinandan Lodha (HoABL), Arvind SmartSpaces, TVS Group, and Hiranandani Group have recognised the utility of this format and have either entered or are intending to enter this market segment.

Given the robust response to a number of initiatives over the past two years, real estate developers plan to make substantial investments in this segment.

The branded land category was long overdue, as individuals needed to begin investing in land from a wealth creation perspective, but no one was providing that opportunity with security and liquidity. Using technology, we have provided this opportunity to consumers, which has resulted in increased popularity among real estate developers specialising in plotted development sales.

As purchasers' demand for space, amenities, and an elevated living experience continues to rise in India, plotted developments have emerged as a promising opportunity. For consumers, calculated developments offer the flexibility to personalise the design and construction of homes, allowing purchasers to create a living space that is tailored to their specific requirements and preferences.

In the aftermath of the pandemic, the Ahmedabad-based company has expanded its presence in this market segment.

After selling plots worth INR 200 crores in November 2022, it sold 150 plots in its Bengaluru project for 100 crores on the day of its March launch.

Post-pandemic, the desire to own land increased. Built-to-suit functionality in the plotting segment provides consumers with greater flexibility.

Large horizontal developments present developers with both opportunities and challenges. In addition to complex land consolidation and regulatory obstacles, this sector requires long-term vision and conviction. Moreover, it provides superior returns over the medium and long term due to the advantages of scale and greenfield infrastructure development.