Land vs Home Investment: There are many ways to invest in India’s real estate market. You can buy a house or flat in big cities, or buy land in emerging areas. Both options have their advantages and risks. Experts say that decisions should not be taken without understanding the returns, liquidity, tax and risk profile.
In which investment will the money grow more?
Residential property has shown steady growth over a long period of time. Rahil Reddy, Director of Residential Projects at Fortune Primero, says that house prices have continuously increased in big cities of India. In many places this increase has been more than inflation. In some markets, prices have increased by more than 100 percent in the last 10 years.
Good growth in luxury property segment also
According to Darshini Thanawala, vice president of business growth and strategy at The Chapter, well-designed and branded luxury homes in high-demand micro markets like North Goa have outperformed the general market. Limited supply, exclusive designs and lifestyle appeal support prices for a long time.

Land exposure at higher locations
Samujjwal Ghosh, CEO of The House of Abhinandan Lodha, says that the demand for land has increased in religious and cultural cities like Ayodhya, Vrindavan and Amritsar. After big projects like Ram Mandir, Kashi Vishwanath Corridor and Mahakal Corridor, the prices there have increased.
They say that land with good location grows faster. If the land is linked to a long-term plan, its value may see a sharp reprice over time. In the last five years, a CAGR growth of about 29 percent has been recorded in Vrindavan and more than 40 percent in Ayodhya.
Liquidity and ease of selling
Selling a house or flat is generally easier because the number of buyers is larger. Bank loan facility is also available. Rahil Reddy also says that residential properties can be sold faster because there are more potential buyers.
But, buyers may be limited in terms of land. Many times the process of paper approvals is lengthy. Samujjwal Ghosh says that now in branded and digital platform based land projects, which have clean title and infrastructure, liquidity has become better and more reliable than before.
According to Darshini Thanawala, whether it is a house or land, the condition of infrastructure, community planning and quality of design affects the speed and price of resale.

Impact of taxes and regulations
Long term capital gains tax is applicable on both land and residential property. Ghosh says that in land projects where the titles are clear and regulatory approvals are complete, the risk of transaction is less. After the implementation of RERA, residential projects have become more transparent and organized, which has increased the confidence of investors.
Rahil Reddy explains that while buying land it is important to pay attention to zoning and exit plan. Whereas in residential property, compliance, financing and tax planning are relatively more straightforward. Darshini Thanawala says maintenance standards and regulatory clarity in branded luxury projects help in maintaining value in the long run.
balance of risk and return
Residential property can be put into immediate use and can also generate rental income. But there are maintenance costs and wear and tear on the building over time. At the same time, land does not provide regular income, but there may be a possibility of price increase in the long term or development in the future.
According to Ghosh, it is not land itself that is risky, but untested or unplanned projects create risk. Land with the right location and clear planning can create value over the long term. Thanawala says luxury homes in select micro markets, where there is demand from genuine buyers, retain their value even through market fluctuations.
How to balance your portfolio
Experts believe that a balanced portfolio can be created by combining both residential and land assets. Residential property can offer relatively stable returns and rental income, while well-chosen land can benefit from booms linked to infrastructure or policy changes.
Investors should take decisions keeping in mind their goals, investment period and the condition of the chosen micro market, so that the portfolio becomes strong and sustainable.
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Disclaimer: mThe advice or opinions expressed on Neecontrol.com are the personal views of the expert/brokerage firm. The website or management is not responsible for this. Moneycontrol advises users to always seek the advice of a certified expert before taking any investment decision.




