Is Your Investment in a Plot Right for You?
Buying plots of land can be a lucrative long-term investment, especially if you make wise decisions. Plots tend to appreciate faster than apartments, thanks to their flexibility for future construction. For instance, I've personally observed that my plot in NBR Green Valley, located on Sarjapur Road, has seen a significant increase in value. Plots in rapidly expanding areas like Sarjapur Bagalur or Devanahalli also present excellent investment opportunities, as infrastructure improvements such as new roads and metro extensions often boost land prices.
Historical Land Investment Trends in India
Lands, particularly plots, have consistently demonstrated higher yields in India. If you've secured a property in an area with a robust infrastructure, the land's value can substantially increase over time. Investing in land is like saving money, but with the potential to earn much more in the future.
In India, buying a plot in a fast-growing suburban locality of a tier-II city, such as Jaipur or Kota, can be a savvy investment. These cities are set to become smart cities, providing significant chances for good return on investment. Moreover, by becoming a landowner in a tier-II city, you can reap passive income through renting to developers or commercial firms. You could also use the land for agriculture while waiting for the right moment to resell it. While investing in plots in big cities can also be a good idea, it often requires a larger capital investment and offers lower price appreciation compared to tier-II cities.
Investment Considerations in Plot Purchase
Investing in a plot, especially in bigger cities, can be a significant financial decision. Land is a scarce resource that is in constant demand, and its price tends to increase over time. However, the returns on investment in big cities are typically lower compared to tier-II cities. Even during economic downturns, plot prices do not depreciate. We have seen firsthand how plot prices appreciated quickly following the 2008 economic recession.
If you are considering purchasing a plot with your savings, you should definitely go for it. It is one of the best investment avenues for hard-earned money. If you are considering a loan to purchase the plot, you should carefully evaluate the projected returns. The total price of the plot after loan repayment should be less than the total value of the land after appreciation.
Conclusion
Investing in a plot of land can be a wise decision, especially if you choose the right location and time. Plots in rapidly growing areas, such as Sarjapur Bagalur or Devanahalli, or tier-II cities like Jaipur and Kota, are ideal investment opportunities. However, careful consideration of the location, future development plans, and financial outlay is essential.