When it comes to the real estate market, it has undergone some changes in the recent past. In fact, as per market reports, the price of residential plots have appreciated by 7% yearly since 2015. One of the highest returns on investment comes from residential plots. The primary reasons are limited land in big cities and a constant increase in demand for residential projects.
Although people preferred to buy ready-to-move-in flats, during the COVID-19 pandemic, the demand for plots along with independent floors have increased manifolds. In order to meet this demand, many developers are buying property in the outskirts of the big cities. For example, there has been a significant increase in demand for land on sale in Mannivakkam. Moreover, the pandemic has enforced a drastic lifestyle change which has created its own demand in the real estate sector.
Hence, in today’s blog, we talk all about the trends in the residential plots market.
Increase in demand for residential plots
People invest in real estate for two main reasons- for building a portfolio, and for buying a home to live in. For both of these reasons, buying plots in Mannivakkam, and various other neighbourhoods in Chennai along with different upcoming cities have increased drastically. For the sake of relocation, remote work, and land investment, people are buying land to build a bigger home. In most cases, these lands are located in the outskirts of the city. Hence, a guarantee of a peaceful life, away from the chaos, pollution and humdrum of the city is something to look forward to. Although a good part of 2020 saw a stagnation in the real estate market with limited demand in residential plots, the first two quarters of 2021 has shown significant market growth.
Developer’s move in the market
Almost all reputed and well-known developers have ventured into the market of land and development. Homebuyers too always prefer popular developers when buying land for sale in Mannivakkam for their open spaces, lower population density and price appreciation. Social distancing is also a reality that can be maintained in open spaces much more effectively in comparison to crowded cities.
Factors to consider when buying plots
Due diligence should be maintained when buying a property. Moreover, its importance is even higher when it comes to buying land. According to real estate experts, buyers and investors should be more careful when buying land in comparison to purchasing a flat. Paperwork is crucial when one buys land. Some of the important documents that you need to check when buying land for sale in Mannivakkam and any other place in India include- title deed, release certificate, property tax receipts, encumbrance certificate, and local approvals.
When it comes to land, a number of frauds and illegal transactions are rampant in the real estate sector. Hence, if you don’t want to get tangled up in legal obligations or get cheated in the name of creating a diverse portfolio by investing in land, do not compromise on the paperwork. If you are looking for undisputed ownership of land, insist on a valid title, and clear deeds. Extra caution should be taken when the land in question is used for agriculture. Many states have strict laws that forbid non-agricultural buyers to purchase agricultural land.
If you are purchasing new plots for sale in Mannivakkam Ram Nagar, this might be a little simpler for you in comparison to purchasing a resale property. In the latter case, you need to look for a release certificate. A release certificate from a bank signifies that the loans taken against this property have been settled. An encumbrance certificate is another document that is to be included in the list. Past tax receipts must be retrieved from the seller to check whether he or she has not defaulted on paying taxes.
Possession of land can be quite a tricky subject matter and getting clarity might be an issue. Illegal encroachments are also common which not only leads to unwanted legal liabilities but also reduces the marketability and value of the plot in question. Moreover, there is always a risk of government acquisition when investment in land is in question.
Now that we have established the important factors to consider when buying land, let us jump right into the plots and plotted development.
When you are buying land for sale in Mannivakkam, it can be a regular piece of land, or plotted development.
But what is the difference between individual plots and plotted development?
Individual plots can be bought in terms of your budget and you can build a house as per your preference. But you must scrutinize the ownership and nature of the plot you are buying.
Plotted development is a versatile asset that provides all the important amenities provided by a developer. The amount of paperwork involved in buying plotted development is significantly lesser as the developer has already done the groundwork for you. But you must only opt for plotted development from a reputed and trustworthy developer to avoid any hassles with ownership at any point in time in the future.
Bottom line
Buying land can be a smart investment choice if done correctly. Even though landowners need to conduct extensive research and spend a significant amount of time doing the paperwork, the appreciation rates are only going to increase further with time. Hence, if you are someone who is considering diversifying your investment portfolio by becoming a landowner, or you simply want to buy a plot of land and build a house, we hope this blog has been informative enough to help you make the right decision.
