Prices of residential plots across eight major cities have appreciated by an average of 7 per cent annually since 2015, while rates of apartments increased by 2 per cent, according to realty portal Housing.Com.
"Residential land is still a better investment than buying apartments," Housing.Com said in a statement. Plots generated higher capital returns in India since 2015, it added.
"Prices of residential plots appreciated by 7 per cent (CAGR) annually since 2015 across eight major cities, while rates of apartments grew by 2 per cent (CAGR) annually during this period," the portal said. Delhi-NCR, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad are the eight cities tracked by Housing.Com.
"Residential plots have been able to generate higher returns on investment. One of the reasons could be the limited supply of plots in big cities because of the paucity of large land parcels in the city," said Dhruv Agarwala, CEO, Housing.Com, Makaan.Com and PropTiger.Com.
The demand for plots and independent floors have come back strongly during the Covid-19 pandemic, he said.
Agarwala mentioned that developers have been trying to meet this rise in demand by launching such projects on the outskirts of big cities.