Branded land, branded plot or branded property has become one of the most important buzzwords in the world of investment lately. Rightly so because a huge percentage of investors are growing more and more wary of market equity, of investing in high-risk properties, and volatility of the market owing to the pandemic. Hence, investors who are looking for long term stability are choosing to invest in land as it is one of the most rewarding and safe investment choices in the current market.
Nevertheless, there are many preconceived notions when it comes to purchasing land, especially branded plots. Hence, in today’s blog, we address those apprehensions and have a better understanding of the opportunities in the real estate sector.
What is a branded plot?
While the term is in itself self-explanatory, the branded plot is a property in which the property developer makes use of the name of his own company in the project. This especially stands true for developers who have been able to build a brand of their own because of the quality work and property which they are promoting.
What are some of the challenges faced while buying land in India and what is the role of branded –plots in addressing the need-gap?
There are many issues that an investor faces when he considers investing in land. Let’s consider an example- You are a real estate investor and want to build your portfolio. You decide to invest in plots in Mannivakkam. But people warn you of various risks involved in this investment plan. The process of investment is also tedious, and might not have much transparency on the title and ownership. You are not sure about the land’s legality of use. In order to ensure that you are not caught up in sticky situations for choosing land to invest in, you need to put in a substantial amount of time as well as effort to find out whether these plots are worth investing in.
In fact, before you seal the deal, you must assess the future prospects of the land you wish to buy which involves a great deal of understanding about the present infrastructure development. You also need to find out what future possibilities a piece of land possesses in terms of infrastructure development. It is because of such a time consuming and gruesome process involved in buying land, many investors steer clear from investing in land.
However, if we consider the history of land investment in India, there is enough proof that land in the form of an asset class is capable of being an incredible choice of investment and reaps benefits of return- if done the right way.
The key to most profitable investments in the past was hidden in the identification of land which held promises of growth in the future. Investors identified such opportunities and focused on land acquisition at great prices. They held on to it for a certain amount of time and later monetized it to earn good profit.
The current market is however a tad bit different. There is a need gap that can be effectively addressed with a branded plot. If you are an investor, instead of simply searching for plots in Mannivakkam, look for TVH plots in Mannivakkam. Now you might be wondering why branded plots?
It is simply because branded plots are capable of creating good business and generating considerable consumer value because of approaching the retail franchise of this business in a customer-centric way that is rigorous and scientific.
Moreover, many investors have refrained from purchasing land because liquidating land assets has also been extremely difficult without proper documentation, approvals from the authorities, etc. In case the land you hold is agricultural land, the lack of a transparent mechanism to test its tradability makes it unfit for investment.
However, those investors who choose branded plots in Mannivakkam have the advantage of faster and easier liquidation of the asset. This is possible only because branded plots by their name assures investors of the security and safety- legal and physical. The physical location of such branded plots is only a cherry on the top and yields extreme value.
Due to rapid urbanization in many areas of the country, especially top tier cities, the focus on smart cities has only increased. People are more invested in the idea of owning land in the suburbs but with easy access to the city. Investors also consider the process of resale when investing in a branded plot for sale in Mannivakkam Ram Nagar as a transparent and legally secure process since it carries the seal of trust along with the brand value. By choosing branded land, you also avoid the risk of encroachment and maintenance.
What are some of the things to ponder on when it comes to investing in branded land?
While branded land is gaining more popularity is time, there are some aspects that every investor should consider prior investment-
Too much dependence on a name
A name alone should never be the benchmark of investment. Focus on what you get from the name as an investor.
Difference in taste
Branded land and its future infrastructure are often dependent on the developer, which you need to evaluate before investing.
Blind trust
Investors must avoid falling into the trap of blindly trusting any brand. Take your time and study the project before investing.
The land is not infinite, this makes it more valuable and opting for branded land makes the process of owning land hassle-free and simple. However, every investor must take time and conduct proper research before investing.
