PLOTTED DEVELOPMENT

PLOTTED DEVELOPMENT

Saturday Brain Storming Thought (276) 24/05/2025

Plotted Development refers to a real estate concept where a large plot of land is divided into smaller, individual plots, which are then sold to buyers who can construct their desired homes or buildings on them

Essentially, developers provide the land and the basic infrastructure, while homebuyers are free to design and build their own properties

Plotted Development meaning

Plotted Development projects involve a developer acquiring a large tract of land and subdividing it into smaller plots for sale

Plotted Development includes

The developer typically provides essential infrastructure like roads, electricity, water, drainage and security within the development

Freedom to build in Plotted Development

Once a plot is purchased, the buyer has the freedom to design, construct and build their own house on it, according to their preferences and budget

Increasing Popularity of Plotted Development

Plotted Developments are gaining popularity, particularly people who value open spaces, personalized living and low density living options

Benefits of Plotted Development

Plotted Development offers the freedom to design a home that perfectly suits individual needs and preferences, as well as potential for long-term investment

Gated Communities in Plotted Development

Many plotted Developments are now being offered within gated communities, providing added securities and amenities

Necessity of Plotted Development

1) Affordability

Perfect for Budget-Savvy investors

The cost of land is often less than the cost of a finished house

2) Development Flexibility

Unlocking Plotted Developments

Buyer has the freedom to create a home that is uniquely his in every way

3) ROI

Plots as Investment Power

Plotted Developments provide low-risk and high-return investments

4) Privacy

Plotted Developments ensure Security and Accessibility

Round the clock security and monitoring system ensures a peaceful, quiet and safe living

5) High-End Amenities

Luxury Lifestyle at Your Doorstep

The clubhouse, fitness centre, sports courts, garden and gated communities are just a few of the numerous amenities

Key Takeaways of Plotted Development

1) Pattern of development largely based on and comprising generally of large number of plots having variable sizes

2) Land generally owned individually or jointly

3) Pattern of development is generally up to 3 stories high ie low rise

4) Land utilisation is low with larger areas going under roads and open spaces

5) Population/Housing density is low

6) Open spaces available within plots and held in private ownership with limited use only by the owners

7) Cost of construction is generally high because of low rise buildings and individual services

8) Social Sustainability is low due to limited social interaction promoted by individual living

9) Safety and Security is low due to individual living

10) Pattern of Living promotes individual living leading to anonymity and exclusion

11) Design of the unit is flexible due to individual ownership

12) Cost of Maintenance and Services is high and expensive

13) Creation of Housing Stock is low due to lower land utilisation

14) Unaffordable Housing

15) Sustainability is low due to large dependence on common facilities and services provided in neighbourhood

16) Technologies offers limited options for using state of art construction technogies and minimising cost

17) Green and Energy Efficient buildings offer limited cost-effective options

18) Ground coverage is higher in case of smaller plot areas and lower with increasing in plot area

19) Parking norms are not defined

20) Makes housing largely Unaffordable

21) Inefficient method of overcoming housing shortage

22) Offers high degree of privacy

23) Problems of maintenance/unkeep can be attended immediately

24) Social conflicts are limited

25) Management is individual/Family based

Circumstances where Rera registration is required for Plotted Development

1) Plots sold with the promise of common Amenities or Facilities

If the developer promotes or sells plots by promissing the provision of common amenities such as parks, playgrounds, water supply, electricity or other facilities, RERA registration is mandatory

2) Development of plotted colonies or townships

Rera registration is necessary

This ensures that the development is carried out according to the specified guidance and obligations

3) Sale of plots with specific development obligations

If the developer sells plots with commitments for developing infrastructure such as roads, drainage systems, water supply, sewage facilities etc

Rera registration is mandatory to ensure compliance with these obligations

Benefits of RERA registration for plotted Development

1) Protection for buyers and investors

2) Enhanced transperency in real estate transactions

3) Standardization of real estate practices

4) Resolution mechanisms for Disputes

5) Assurance of project completion

Taxability of Sale of Land under GST and Exemptions

1) GST is not applicable on the sale of land transaction only when it exclusively relates to the transfer of ownership of land

2) If such sale includes other services such as electricity lines, water line, drainage line, land levelling etc then GST will be applicable

3) If the seller is charging an amount towards the sale of land, including charges for common amenities, it will amount to providing a service that attracts GST