What is your preference? Either for residential use or as a source of your 2nd income from real estate. Despite of the fact both land or flat are equally good investment option, every individual has their own arguments on their preference. Here we have tried to come up with the best possible pros and cons on why to chose plots in layouts or flats in apartment.

1. Plots in Layout /
Flat In Apartment
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2. The reality sector of India came a long way to become one
of the fastest growing real estate markets of the world. It is
successfully attracting the domestic as well as international
investors. The growth articulated mainly because of the
large population, rising income and the majority of mid
budgeted segment of population. The sector would attract
more NRI investments in near future with the relaxed FDI
norms and Bangalore is expected to be the most preferred
place for property investors. Adding more the year 2015
witnessed a couple of favorable changes in real estate bills
which garnished sufficient growth in the recent times.
Introduction

3. Quick learns
• What are the growth drivers of Real
Estate India?
• How to find the right asset for regular
income?
• Comparing Plots in Layouts and Flats in
Apartments as investment.
• Which one is better for residential
purpose?

4. The Growth Drivers For Indian
Real Estate

5. Internatio
nal
Tourist
Medical
tourist
New
streams
of
Business
Increasin
g Young
Buyers
Rising
FDI
Solid
Demogra
phy
Changes
in Fiscal
Policy
More Mid
Income
Groups
Changes
in Real
Estate
Bill
Growing
Tourism
Easy
Finance
Increasin
g
Nuclear
Families
Indian Real
Estate

6. Finding Right asset for
regular Income
Buying property is a tough decision as it racks your head to
decide whether to buy a flat in apartment, an individual
house or a plot in a layout. When you are buying property to
make it a source of income it becomes more tougher.
However Each of them has their own merits and demerits
and it is up to the consumer to decide which one is better for
him.

7. Check your Comfort Zone
In case of an apartment you don’t have to
hire an architect or have to run behind the
local authorities to get construction
approvals. But land plots has a big plus as
you will get possession of the land way
before than a flat.

8. Lag of Appreciation
Both for flats and plots, location is the key
for value appreciation where as land value
is not going to depreciate but flat value will
get depreciated with the passage of time.

9. Tax and Interest Sops
As a flat owner you are eligible for an
exemption in tax to an amount up to 1.5
Lakh where as on holding a plot you are
not eligible for any tax rebates but still you
can apply for the interest paid.

10. Details Plots in land / Layouts Flats in Apartments
Cost Depends on the locality, plot size and
demand of the area.
Depending on the locality, accessibility, designs and
brand value of the developer.
Value
appreciation.
Depending the availability of space
which is vanishing in cities, it is
expected to appreciate very quickly.
Flexibility of construction make land to
get quick appreciation.
A flat has a diminishing effect as it has a limited life
span. With the passage of time, the growth sticks.
lack of flexibility in use, renovation and extensions
are the limitations to quick growth.
Risk The land tends more litigations and it is
very difficult to come out from it once
anyone claimed on it.
The delay in project completion is one of the major
problems. Very often it is seen that most of the
builders compromise in their quality in order to
meet with the dead line or to control the cost of the
project.
Bank Assistance The buyer has only few options to
leverage its financial position for
buying a land property as banks
doesn’t provide finance to buy land
property.
Taking a bank loan for flats is quite easy from all
bank if the builder has a good reputation.
Regular Income
sources
Land property generates a hardly any
income if rented and it is difficult to
reoccupy the land if the tenant claim on
the property for litigation.
Flats are ready to generate good income from the
date of possession if given on rent. There is hardly
any chances of litigation today with new laws.
Future prospects Land is always been in great demand as
the value of it appreciates immediately
due to no depreciation on land.
Because of depreciation in construction it reduces
the growth rate.

11. What is better for residential purpose
Plots/Flats?
There are two types of people living in the world,
one who loves to live in flats and other is who
loves to live in individual houses. So which option
is better for residential purpose? Well there is no
specific argument to prove one is better than the
other. It depends on your living style and
preference which figures out your need.

12. Flat in apartment Plots in layouts or individual house
Flats in apartments are
considerably small and are
restricted to modify.
Though it is bigger but bigger
places always ask for high
maintenance costs.
Flats come with a lot of neighbors
who may not be very friendly with
you.
You will have more freedom of
living and there won’t be any
curious eyes to look inside your
home.
Although there is a dedicated
security guard at the front gate the
burglars can still creep in and take
the advantage of many people
coming and going inside the
buildings.
Less security, and an additional
burden for you to secure your
family from unwanted visitors,
salesmen and trespassers.
Buying flats for residential
purpose is not an option for you if
you are a pet lover.
House are much better place for
throwing parties frequently.
Flats come with your own parking
lot and if your friends or relatives
visits your place they can also use
the parking lot.
Finding a parking place near your
house if it is located near any
crowded place will be a difficult
task for your friends and relatives.
B
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13. Conclusion
“Both Plots in Land and Flat in Apartment has their
own pros and cons, one has to access his needs
and decide which one is ideal for him”