Construction industry

Construction vs Owning A Flat

Jun 05 2021

Anwesha Nandy

The concept of owning a home is deeply ingrained in Indian culture. It's a financial investment, but it's also a psychological one. In India, there has been a movement in housing buying habits from houses to apartments. Having your own house used to be linked with having your roof and shelter, and the thought of flats/apartments was frowned upon.

Now in 2021 when it comes to buying a home, buyers are frequently caught between two options. On the one hand, there is the option of purchasing land, and on the other, there is the option of acquiring an apartment.

Both flats and plots come with their own set of advantages and disadvantages. As a result, buyers must identify their own set of requirements before deciding to invest. To say the least, the world of real estate investment is overwhelming. Investing in real estate is a difficult task. Not only must one choose a secure path, but one must also consider whether to buy an independent home or a flat in a society.

The Land vs. Flat Controversy

Before investing, buyers should carefully consider the following factors before deciding whether to buy an apartment or a piece of land.

If the plot of land is not part of a builder's project, the buyer has instant possession. In the case of an apartment, however, the buyer does not take ownership until the project is completed. The disadvantage is that most projects are delayed, and buyers must wait a long time to take possession of their apartment.

Suitability: A plot is most suited to persons who have the time and resources to build a home on it. Apartments are perfect for folks who don't have a lot of free time and who can't stand the hassles that building a house would undoubtedly bring.

Source of Income: Until it is sold, a parcel of land does not create any income or profit. Flats, on the other hand, generate a steady monthly revenue when they are rented. Furthermore, there is little room for lawsuits since modern tenancy laws are in place.

Quality of Construction: Because the homeowner closely monitors every aspect of the construction on a plot of land, it is usually of the highest quality feasible within his budget. In the case of apartments, developers frequently compromise on construction quality in order to keep prices down and meet schedules.

Appreciation in Value: Land is a finite resource. As a result, its value appreciates faster than that of a flat with equivalent dimensions in a similar area during the same period.

The Financing and Taxation Paradigms: Buying a piece of property is a difficult task. Buyers must be financially stable to make an initial investment. Though institutions such as HDFC Plot Loans and SBI Realty provide loans for plot purchases, the procedure is lengthy. Furthermore, the accompanying tax benefits are conditional on the plot of land being completed and are only available for the first year.

Risk: If a piece of land is in a distant location, is unfenced, or has insufficient fencing, it is vulnerable to being encroached upon. Apartments, on the other hand, are free of the threat of intrusion.

Flexibility to Design and Modify: A parcel of land gives the customer the freedom to build his home exactly how he wants it. The buyer of a plot of land has the option of customizing the house to his satisfaction. Everything can be customized to his exact needs, preferences, and budget. In contrast, a flat does not allow him to change the design or size of the construction area.

Accessibility: If a plot is located in a remote place, essential amenities may be difficult to come by. Most apartments have strong walk scores because most amenities are within reasonable walking distance

Convenience: It can be rather difficult for a homeowner to have to meticulously watch every part of the development on a piece of property. Purchasing an apartment, on the other hand, is simple. Once the apartment has been turned over, the homeowner is only responsible for the interiors.

Buying a Home in 2021

While today's fast-paced generation prefers to invest in apartments, young people are more interested in establishing their own independent homes. Home buyers' preferences are shifting. As the adoption of remote working grows, more people are looking for homes outside of congested city centers. The financial benefit of being a self-sufficient homeowner is perhaps the most obvious. Residential dwellings, even those marketed as the most economical, are often significantly more expensive than a piece of land. As a result, the majority of potential house purchasers must either pay a flat sum or take out a loan with EMIs to cover their apartment expenditures. A self-built home, on the other hand, is significantly more cost-effective and gives you more financial freedom. The cost of land is variable and mostly determined by the location of the city. Purchasing land within the city limits may be expensive, whereas moving to the outskirts could be comparatively less.

Financial Gains

When it comes to long-term financial rewards, a house built on a plot of land can outperform apartments. Because developing a plot is easier than constructing a structure, the value of your investment is more likely to increase quickly. The key to rising prices is location. If the market remains stable, the value of a plot will increase with time, depending on other factors environment, quality of land, and other upcoming infrastructure facilities in the area. Also, while a land parcel is unaffected by age, construction deteriorates over time. Unlike apartments, which continue to depreciate, self-constructed houses have a catch: the value of the land parcel increases while the value of the home decreases with time.

Owning a piece of property also provides you the freedom to start construction whenever you want, regardless of your financial situation. Because of the modest entry ticket size, even new investors can purchase land without financial constraints. Many investors prefer to buy land early in life and then build a house on it later when they have more money.

Customers Continue to Be Frustrated by Delays in the Real Estate Industry

Purchasing a plot has a minimal to no delivery risk, whereas purchasing a flat has a significant delivery risk because the developer must fully construct the unit and the number of approvals and clearances required is substantially larger. This also means that building your own home has a lower likelihood of being delayed than buying a unit. Aside from that, there are a number of other advantages to owning a home. The owner has complete privacy and security systems that can be programmed to suit his or her needs. Homebuilders have the opportunity to choose their designs based on their preferences and budget, and they can start construction whenever they are ready.


Any property acquisition is influenced by factors such as cash flow, financial aid, time frame, location, and future preferences. There is no one-size-fits-all investment approach that will work for everyone. Making a selection based on the intended holding term, costs involved, and the autonomy you wish to have throughout the construction time is the ideal method. In comparison to flats, independent houses give you more independence in every way. Perhaps, like everything else, we'll return to our roots once we discover that our parents' and grandparents' wisdom in owning a home never went out of style.


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