Developers encash rising demand for plots, led by soaring IT salaries

The demand for plots across premier cities in India is soaring.? The second home market in India is poised to witness high traction where we see that buyers are inclined towards investing in a gated community that has amenities like a swimming pool, gymnasium, health centre. The first wave of pandemic saw buyers considering Tier 2 markets for purchase as big city employees went home during the WFH period, but during the second wave, people realised that staying in metro cities or bigger cities was a better decision where hospital facilities existed. Cities like Bangalore and Pune which have a majority migrant population started the buying cycle again in the city of work.

The demand is largely driven by the wider acceptance of work from anywhere culture. Moreover, technological advancements have enabled sales of properties worldwide and enhanced the income generation ability of such properties. The biggest drivers of these plot sales are millennials in the age group of 22-35 years. In cities like In Pune, where there is a large volume of techies, with 70% North Indian migrants, plot corridors are spread across many markets. The Hinjewadi corridor scores on proximity to the Mumbai-Pune Expressway and sees investments from the IT workforce. Similarly, in In Hyderabad, another key IT hub in South India, the demand for plots has been rising. The drivers are the same, but the risks are higher. RERA is nascent in the city, a lot of sales of non-registered plotted projects are taking place across micro markets.

In such situations, one needs to be very careful whether it is revenue land or converted land. As Indian real estate is moving towards digitisation, it is easier to check on the legality of the plots. Many unbranded developers have been cutting plots across cities and the IT sector employees could fall prey to them. Ultimately whether it is for end-use or investment, plot purchases need due diligence.