Be it an investment or a genuine purchase, the buyer is almost always very choosy about the plot they would like to buy. Many of us perhaps already know what sort of plots are good ones for investment as well as to build our homes, and which ones aren’t. There are, however, people – mostly genuine buyers looking for a piece of land to build their house – who neglect the factors that make an apparently fine plot a less valuable one.
Let’s have a look at plots that are considered a good investment within a housing society and the factors that determine why these plots are more expensive and have a better potential to gain in value in future.
A plot located on the corner of a street could sometimes have additional area in excess of the regular plot size in a society. Houses built on the corner can have two entrances. In private housing schemes, the launching price of a corner plot is always more expensive, 10% more expensive on average to be precise. While investors are always after corner plots and there are many reasons for that, I think genuine buyers should bear in mind that a corner plot can sometimes take away from your privacy and comfort.
Because of a green and landscaped view on the front, and the fact that there will never be any structure facing your home, plots facing parks are more valuable. In housing projects which haven’t reached the secondary market, the sale price of plots facing parks is usually set 10% to 15% higher. While some people are of the view that a house located in front of a park will see more than the usual amount of foot and vehicular traffic, the presence of a beautiful green space right in front of your home is something worth the extra cost.
Plots located on main roads
Be they in the secondary market or the primary market, plots located on the main road and wider lanes are always more expensive. Their rates vary from developer to developer and from project to project, the price difference is usually 10%. Wider lanes and main roads offer extra, though temporary, parking space outside the house and make turning the car around way easier.
Plots located near commercial attractions
Having your property right in front of a busy commercial area is a bad investment, but one located closer to it is not. Being at walking distance from the nearest market saves you a lot of hassle and fuel costs, which is why plots located around the commercial facilities are usually more desirable and thus more expensive.
But the value of good plots isn’t really obvious until you learn what bad plots are like. So, I will write another post really soon to discuss the plots that aren’t considered to be good investments in the real estate sector of Pakistan. Stay tuned for that.
Meanwhile, if you think I have missed out on something important to add to the list, please let me know in your comments below.