Demand for Plotted Developments post Covid

Real estate has a slew of products aimed at different segments of users; plotted developments, especially Villa plots, appeal to two segments of buyers. First, those who want to build something – usually a Villa – unique and different, which is ‘do it yourself’ (DIY), while having the developer create the infrastructure. Second, those who invest in plots and wait for capital values to appreciate. Catering to a distinct buyer profile where ‘premium’ and ‘luxury’ are associated; this is a product which offers exclusivity; the aspect of each unit being uniquely distinct.

Hiranandani Parks, Oragadam, Chennai is where we have this product on offer; and Alibaug is where we will be offering this product in near future. Post-COVID-19, demand for villa plots has shown good growth. Wellness and a holistic health-conscious environment where residents are safe within an environment of affordable luxury – these are the primary drivers of growing demand in this segment. The economics of plotted development, as compared to apartments, differs: locations are usually peripheral, so the ‘extra open space’ quotient comes in – and that comes at a price. Plotted developments by Hiranandani Parks at present offer plots in sizes that range from 1500 to 3000 sq. ft. Creating the ecosystem for plotted development that caters to buyer needs, permissions and clearances as also setting up infrastructure follows a different set of norms. Obviously, valuation parameters are different; this is a product with a limited number of buyers – so, pricing follows a different set of norms. In Alibaug, the development will follow the French Riviera pattern; obviously the product on each plot will reflect each buyer’s unique taste and preferences, but the common infrastructure will be about recreating the Riviera experience. This is the moot point, why pricing differs in plotted developments as compared to other real estate products. It is not always DIY, the plot buyer has the option of getting the villa constructed by the developer; it is a service that comes at an additional cost.

It is not the case at Hiranandani that one would look at plotted developments as a means of liquidating land banks; it is a distinct product which caters to a unique customer profile and it follows its own set of pricing norms. Your owned plot of land is the ultimate real estate product to own. Given that the total quantum of land is finite, owning your own plot of land is unique in the sense that the buyer owns his or her own piece of Mother Earth. It is not just about buying square feet of space; but also an emotional connect.