Which is better Investment option considering real estate options?

1.Buying a Land
2.Investing in Pre-Launches (Flat)

This question is something which always confuses me.

According to trend people in Bangalore are more towards buying Flats.
So demand for Flats are more high here compared to Land.
Still Land has different charm.You can construct your own house (upto G+3)
with min approvals according to your specification.

Experts please advice keeping 10years in mind what would give a better return.

Assumption 60 Lakhs invested in Pre Launch flat (tier one builder 1200 sqft )
Same money invested in Land around radius of 2-5 km from above mentioned flat.
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  • Definitely Land is a good option provided it is in a gated community.
    There are certain risks in land mainly of encroachment and the hackles of getting all the approvals if it is not well developed site.
    There may also be issues of "Green belt" and conversion.
    You need to take a good legal advice on the title deeds.
    Considering all of this it is better to go in for gated community where you are provided with ready to build land piece. There are good options for this from good brands like Sobha / Confident / Vakils etc depending on the area of your choice.
    All the Best
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  • It is like comparing with Orange we can compare 1Kg with 1 KG Orange or 100 RS with 100 RS orange.


    When you invest 50 Lacs on apartment ( 1200 SFT), you will be get 400 SFT of land + 1200 Build up area. Technically ( 400*3000=12L ) (1200*2000)=24L, So total cost is 36 L and rest of money taken by Builder profit or Tax or club house or BWSSB+KEB.
    If you buy a land in same area you will get (30*55 site) where 100% money goes to land.

    Now if land price does not increase for 5 years due to some reason then your 50L remain as 50L only. Where apartment cost may get increase because of increase in labour or materials ( But Appreciation will happen on only 24L not on complete investment).

    Now if there are only land price increases then also apartment price increases but only 25% of Investment.

    If you are comparing land with Apartment compare from same segment, Like reputed A class builder with A class Land Developer. C class Builder with C class land Developer.

    I Prefer land from KHB ( Auction Or Resale from Farmer), Or from Reputed builder
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  • For 10 years RE investment plan in BANGALORE, I would prefer a pre-launch flat for the following reasons:
    - I don't have to pay 100% money upfront, in case of a pre-launch flat. As opposed to plot, this pre-launch Flat gives the option to pay in stages (usually 2 to 3 yrs) .
    - Flat is comparatively easier to sell than Land.. So, quick exit option with decent returns (15% plus per year) is a possibility, even within 3 to 5 years. (where as selling a plot is bit difficult.. Corner/North/East facing land on a well developed gated layout may get sold quicker.)
    - Rental income is a possibility in flat..
    - With flat purchase, I can save lots of time & effort on identifying the best land / title verification / yearly visits /etc..

    If it is for my OWN LIVING purpose in say next 2-3 yrs (and if I have 60L cash..:)..), I will do all the legwork to find a plot and settle..
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  • Unless you find a plot in already developed area (very expensive) most of the so called gated community layout are un-inhabitable. It takes years to get it developed otherwise you will have empty plots with weeds growing and encounter snakes and reptiles daily. With mostly 50% buyers as investors in these lands you'll have dump yards next to your house.

    Where as apartment even in far away areas once developed becomes habitable as its a ready product and people could start living or renting it out. And once people start living, the area starts developing.
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  • Basically it depends on you looking for shot term or long term. for shot term Flats are the best for long term land is the best...
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