Plots prices appreciates up to 38 pc in last 2.5 ys; Yamuna Expressway sees highest rise

Average prices of plots across seven major cities have risen by up to 38 per cent in the last two and half years with Yamuna Expressway in Delhi-NCR witnessing highest appreciation, according to Anarock.

In its report, property consultant Anarock noted that plotted developments have gained significant traction as an investment asset class in the post-pandemic world.

The top seven cities (Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Mumbai Metropolitan Region and Delhi-NCR) have witnessed new plotted developments supply since 2020, and saw decent appreciation over the last 2.5 years.

As per the research, Yamuna Expressway saw the highest rise of 38 per cent in average plot prices to Rs 2,200 per square feet, from Rs 1,600 per square feet in 2019-end.

Greater Noida (West), known as Noida Extension, witnessed a 36 per cent rise in average plot prices to Rs 4,500 per square feet in June-end, from Rs 3,300 per square feet by 2019-end.

Plot prices at Neharpar in Faridabad rose 29 per cent to Rs 4,500 per square feet, from Rs 3,500 per square feet by 2019-end.

Santhosh Kumar, Vice Chairman of Anarock Group, said: ''Plots have become a hot ticket for property investors on the post-pandemic marketplace. Undoubtedly, well-chosen land offers higher returns on investment when compared to apartments.'' The consultant said that many large developers have forayed into plotted developments and this is no longer the stronghold of smaller, unorganised players.

''With the advantage of branding, plotted developments have become respectable, and most buyers prefer to deal with the bigger names,'' it added.

In Bengaluru, the top three micro markets to see land price growth since 2019 are Devanahalli (18 per cent), Attibele (24 per cent) and Doddaballapur Road (18 per cent).

As per the data, in Chennai, Poonamallee saw 22 per cent growth in average plot prices, followed by Tambaram with 25 per cent and Navallur with 20 per cent growth.

In Hyderabad, average plot prices in Medchal, Adibatla and Ghatkesar saw 21 per cent, 24 per cent and 26 per cent growth, respectively.

Howrah in Kolkata saw a 20 per cent rise in plot prices, Barasat-Madhyamgram saw a 18 per cent increase, and a 24 per cent price rise in Garia.

In Pune, the top three micro markets to see plot appreciation are Hinjawadi with 24 per cent, Chakan 18 per cent and Manjri 18 per cent.

Anarock said that prices at Shahapur rose 22 per cent, Boisar 18 per cent and Neral 17 per cent in Mumbai Metropolitan Region (MMR).

Gurugram-based AIPL Group executive director Pankaj Pal said that residential plots have always remained in demand as the benefits it offers to end users and potential returns that it can generate for investors.

In fact, in Tier-II cities, plotted developments in gated communities are more in demand, compared to Tier-I cities, he added.

''Moreover, in the case of plots there is no depreciation of assets and its price always moves upwards,'' Pal said.

Saransh Trehan, Managing Director of Gurugram-based Trehan Group, said the demand for independent plots has gone up significantly after the COVID pandemic as more and more people are looking for independent houses.