Big builders tap demand for plotted projects after covid

Top property developers are planning launches of plots close to major cities as they seek to exploit a surge in demand in this segment during the pandemic.

The plots will be offered either as standalone properties or as part of a larger township or residential project, said industry executives.

Developers so far have sold plots mainly for early monetization of their assets, lower investments and to make faster exit from projects. But the shift in demand during the pandemic, which saw many people preferring their own homes over apartments, is prompting developers to redraw their strategies.

While developers in Bengaluru have seen growing demand for plots in recent times, plotted projects are also being launched across major metros.

Real estate firm House of Abhinandan Lodha, which currently sells only plots, sold roughly 1,300 plots in Dapoli, Maharashtra, in the past year. It is now planning to launch more plotted projects in relatively untapped locations in the state.

“These are branded land investment schemes where plots were sold virtually. It simplifies land buying and is a platform which creates a class of customers who will continuously engage with us. There is a desire to own land and we are working with other developers too in different cities for branded plotted projects,” said Vikas Chaturvedi, chief executive officer, Xanadu Realty, which handles sales and marketing for these projects.

Similar to the sharp recovery seen in sales of residential properties during the pandemic, plotted projects, which are relatively risk-free, are finding favour among individuals seeking to own an asset, either as an investment or for future use.

“We are in the process of delivering a plotted project in Indore. Plotted layouts are seeing traction in tier-2 and 3 cities and people want to develop these projects due to the demand,” said Rajan Gupta, vice-president, business development and corporate strategy at New Delhi-based Omaxe Ltd.

Property analysts said demand for plots in southern India has exceeded that of other regions in the country.

Bengaluru-based developers such as Prestige Group and Shriram Properties Ltd are gearing up to launch plotted projects in Bengaluru this year. DLF Ltd has planned launches in Indore, Lucknow and Panchkula.

Puravankara Ltd, which created a separate arm called Purva Land for plotted projects, launched its first development, Provident Woodfield, in Bengaluru last year. Following robust sales, the firm is planning a series of similar projects across cities. Over the next year, the company has a launch pipeline of 3.15 million sq. ft of plotted developments in Bengaluru, Chennai and Coimbatore.

“In the plotted segment, a majority of the players today are still unorganized and the quality is average. On the demand side, it is a mix of both investor-driven and end-users where some people will build homes on the land. With land being limited and as density in cities grow, people see significant value in buying land. Which is why we are seeing large, branded developers entering this space,” said Abhishek Kapoor, chief executive officer, Puravankara.

Bengaluru-based real estate firm Salarpuria Sattva Group is launching a couple of plotted projects at Nelamangala and Mandya in Karnatakawhere the plots will be priced between ₹50 lakh and ₹1 crore, said managing director Bijay Agarwal.

“There is good demand, of which about 80% is from actual users,” he said.