May 31, 2023

Plot Vs. Flat: Which is a better investment option?

by Godrej Properties Limited



Purchasing a property is one of the biggest and most expensive investments you'll ever make. Whether you are a returning home buyer or a first-timer, you often struggle to decide between a plot and a flat. This article will help you consider important factors, such as easy financing, high returns, tax benefits, etc., before making your decision. Continue reading to find out which of the two makes a better investment.

Comparing Plot and Flat

Take a glance at our plot vs. flat comparison.

Basis of DifferentiationPlot Flat
FlexibilityFreedom to construct a building as per your preferences and tastes.As the building is already constructed, you can only enjoy limited modification or enlargement with a flat.
Tax Only after building a house on the plot of land can you take advantage of tax benefits.You can receive tax advantages by paying a flat rate on the interest and principal of your mortgage. 
Potential of Income Only after constructing a structure on a plot can you anticipate renting it out.A flat can generate rental income without the need to construct anything.
Financial Aid or AssistanceIt's difficult to get a loan for a plot.A flat can simply be purchased with financial aid.
Rate of AppreciationBecause there is a limited amount of land or plots, they are more valuable and have a higher rate of appreciation than apartments.There are many factors at play to determine the rate at which the appreciation of the flat will take place.


A well-furnished house and the amenities surrounding it influence the value of any property. For instance, there are higher chances of a better resale value on properties like The Godrej Plots in Kurukshetra as it is designed in close proximity to the upcoming educational and industrial hubs in Kurukshetra. Similarly, a flat's value rises as the area's demand for apartments rises.

The size of the plot, the kind of soil, and the proximity to utilities are just a few of the numerous elements that affect the price. The most important factor, however, is the demand for residences in the area. Housing demand drives up prices, and high demand improves the possibility of buyers paying extravagant prices for a home.

Property value

Depending on various reasons, both plot and flat are certain to increase in value over time. Any new connectivity, such as a road, transportation centre, or metro line, spurs development, attracts more residents, and eventually raises demand for the property.

For instance, the value of the Godrej real estate market has increased up to 58.2% in Q4 profit and forecasts a 15% increase in bookings for fiscal 2024 due to its management, design, and sustainability.

Flexibility in modification

An area of land is unaffected by age, yet a flat's quality might deteriorate over time. Good maintenance means homes frequently experience the need to beremodelled or reconstructed. Additionally, a flat's size or layout cannot be changed in the future. Plots, on the other hand, allow for greater flexibility in the construction of any kind of building, including offices and standalone homes.


What are the financial differences between a plot and a flat? A prefabricated home can generate rental revenue as soon as you invest in it. But unless you build a house there, a plot won't earn you any rent. On the other hand, if you construct an apartment on your property and then sell the individual apartments, the long-term profits will be substantial.

Higher Returns

As per investment experts, plots are said to appreciate more quickly and inexpensively than flats. This is primarily due to the dearth of demand for plots on the market for real estate.

The location, proximity to significant infrastructure developments, and market stability all affect appreciation. Land becomes more valuable when conditions are stable for a long time.

Tax benefits

If you have purchased a flat with a home loan and pay interest every month you become eligible for a tax deduction of up to Rs. 1.5 lakhs. Additionally, a deduction of up to Rs. 1 lakh is available upon principal repayment. Tax deductions for interest are only applicable for plots once construction is complete.

Reasons to Invest in a Plot

The explanations for why you ought to purchase a plot are as follows:

  1. Purchasing a plot is a great idea if you are creative and want a home that fits your style.
  2. Purchasing a plot is a wise choice if you want your investment to grow in value.
  3. The future special economic zone (SEZ) and the entire town of Kurukshetra are both connected by the township project.

Reasons to Invest in a Flat

The explanations for why you ought to purchase a flat are as follows:

  1. Purchasing a flat is an excellent idea if you need a place to live quickly.
  2. Younger buyers like apartments over plots. Purchasing a flat is a great choice if you want to generate rental income.
  3. Purchasing an apartment is a good idea if you prefer community living.


It's a good idea to diversify your portfolio whether you invest in flats or plots. You can spread your risk and avoid putting all of your eggs in one basket by investing in both plots and flats.

And last, it depends on the objectives you're attempting to pursue. Godrej Plots in Kurukshetra is the result of incredibly knowledgeable architects and designers who have come together to provide you with unrivalled amenities.

Frequently asked questions

1. What is the advantage of a flat over an independent house?

2. Which kind of plot is suitable for a house?

3. Does GST apply to the buying of a flat?

4. Why do people preferplots over flats?

5. How can I buy a flat without paying GST?

Commercial real estate is subject to a 12% general sales tax. GST will not be charged for the sale of owned land. Neither the landlord nor the tenant must pay GST if the tenant is a resident and does not operate a business from the property.

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