Plot or Flats Which One is better for Investment

Person holding apartment keys in gurgaon

Confused Between Plot or Flats, which one is a better investment!

If you are looking to invest in residential Real estates market you often com across wither to invest in a plot or in a flat most of people got confused while comparing a property before investing.

7 Property Checks That Will tell You which one is better for you.


In Flats, You Can not get any complete flexibility to modify your Apartment because in flats apartment sizes are designed by builders and approved by a government official before getting occupation certificate for the building. this scenario is for both Under Construction and ready to move in Projects and ready to move property you don’t have much scope for structural changes you have to accept property like the way it is.where as in Plots you can design property with your own taste like the way you love more over in Huda plots there is a criteri for construction in huda sectors

Property Returns

in Flats, you get a better return as compare to Fixed deposits and other investing scheme options.

  • moderate returns
  • 8%-12% PA in Ready to Move in Property.
  • Returns Can be higher in Under construction Property.

When we took a tenure of 20 to 25 year we get an approx average return of 8 to 12 %. there might be some chances that you get return of upto 30% in first year and 0% in next successive year. above is roughly idea of 20 to 25 year.Return Can be higher depending upon area,growth and infrastructure.

in plots, you will get a return of 10 to 15% depending upon market condition, in developing area and upcoming economic corridor these return can be high. but it can be negative in the undeveloped area because there might be a chance that area can take a timespan of another 10 to 15 years.


  • in ready to move property there is a very small risk portion.
  • with under construction property, there is a very high-risk factor due to builders delay in the property that case, you have to bear the cost of the home loan and the rent where you live in

in plots there is some Major risks that can affect you badly.

  • Title Risk – in Plot there are Title risk
  • ApprovalRisk – You don’t know Wither land is agricultural or commercial
  • Encroachment Risk by local land mafias.

Rental Income


Tax Benefits & Loan

in case of a home loan in flats you get an easy loan and get tax benefits instantly under section 80c and section 24, You will get a loan up to 90% depending upon your terms with bank and eligibility of cbil score. And remember home loan are always cheaper and you can also get benefits of 2.75000 under PMAY Awas yojna.

in Plots You have to Dump all the money at once andif your get any loan from other property then the value will be higher.


In flats there are gated community and usually society have tear 1 and tear 2 security on the other hand side plots have no security and there are always chances of encroachment in plot

if you are working class people then flats are a very good option but if you are seeking higher returns then plots are good options.

Some useful Link for property decision.

  • How to buy a plot
  • Under construction vs Ready to move in Property
  • How to buy under construction property.
  • How to Buy Ready to move property.