BENGALURU: Plotted developments are becoming increasingly attractive to second- and third-home buyers due to their appreciation potential, flexibility, and long-term land value.
With land prices surging in double digits across major urban areas over the past four years, what was once a niche market is now a primary investment option for affluent and upwardly-mobile buyers.
In response to this heightened demand, developers are creating branded, fully-serviced plotted communities complete with amenities, clear land titles, and integrated infrastructure. Second-home purchasers see land as a forward-thinking asset—offering the liberty to construct at their convenience, mitigating depreciation risks of apartments, and benefiting from the natural appreciation of land.
“Plotted developments allow real estate developers to diversify risks while capitalizing on lower development costs, quicker construction timelines, and improved cash flows,” says Samantak Das, Chief Economist and Head of Research at JLL India. “Developers are shifting to this format due to faster turnaround times, quicker cash flow availability, and rising investor confidence.”
In the March quarter alone, approximately 944 acres were acquired, with 20% designated for plotted developments. According to JLL India, more than 2,300 acres were acquired across 23 cities in 2024, with over 38% allocated for plotted or low-rise residential projects.
Many prominent real estate firms are actively expanding their portfolios in this sector.
Sumadhura and Assetz Group, well-known for their large-scale township initiatives, are significantly investing in this area.
“Land appreciates faster than constructed units, particularly in the peripheries of cities. With today’s buyers prioritizing sustainability, long-term wealth creation, and design freedom, plotted developments are increasingly seen as a preferred choice,” stated Sunil Pareek, Executive Director at Assetz, which has plotted projects in Bengaluru.
Market data indicates that in cities like Bengaluru, Pune, Hyderabad, and the outskirts of NCR, plot prices have doubled over the last four years. In Bengaluru’s Sarjapur and Devanahalli regions, plot prices currently range from ₹5,000 to ₹8,000 per sq ft, varying by location, developer, and available infrastructure.
Although acquiring land has been traditionally more challenging than apartments, the entry of reputable developers with RERA-compliant projects has increased transparency and enhanced legal diligence, attracting more institutional and retail buyers.
For buyers, plotted developments present various advantages beyond appreciation. There are no maintenance fees until construction begins, no shared responsibilities with other owners, and complete freedom in designing one’s own home.
