Land vs Flat: The Best Buy for you


Real estate investments are the investment for a lifetime, hence must be taken very carefully, keeping all aspects in mind. If you have a lump sum amount to invest you may consider several property types and options like an apartment, independent house, or a plot. The choices are numerous but you must make an informed decision to earn maximum returns on your investment. 

Not only that, but you must find a safe avenue or a trustworthy partner as the fraudulent practices in the sector are prevalent. Thus making an informed decision is the key to protecting oneself from falling into the trap of such scammers. 

Investing in a plot lets you have the independence of building a house as per your specific requirements, while a flat or an apartment does not offer you the freedom to accommodate any structural, design, or size alterations. From a security point of view, flats are considered safer than plots. 


We have accessed a few parameters below to help you arrive at an informed decision. 


Require Personal Efforts

An architect or a contractor must be hired to execute construction on a plot. In addition to supervising the construction, arranging finances, and dealing with contractors, there are many small details to contend with as well.

Unlike a house, apartments are handled by the developer who gives possession upon completion. Rather than worrying about the actual construction of the house, one just needs to focus on furnishing it. 

The flat comes with basic amenities such as electricity, water, maintenance, and security, as well as some additional features such as a clubhouse and swimming pool. To build a house on a plot you buy, you will definitely have to make all arrangements yourself which is a cost-intensive process.


Timely Delivery

Apartments may take a long time to be ready for possession, but plots are usually ready for possession sooner. In the event that you select a plot in a township, you are more likely to receive possession sooner than if you chose a flat.


Excellent Returns

According to real estate experts, land appreciates faster than apartments. One of the primary reasons for this could be the limited availability of land. Also, the investment in land does not depreciate with age, while that of an apartment does as it ages. Placement and proximity to major infrastructure projects determine the appreciation of a plot. Additionally, the worth of a plot increases over time during stable market conditions.

The ease of developing a plot means more takers, so your investment can be liquidated whenever you like.

Apartments and plots alike are valued according to their location, infrastructure, and quality of neighboring areas.



Plots and flats are taxed differently. A home loan allows you to save taxes if you take out one to buy an apartment or a builder’s floor.

Tax deduction of up to Rs.1.5 lakh per financial year can also be availed on home loan interest. For repayment of the principal, you can claim a deduction of Rs 1 lakh. If you own a plot, you can deduct interest only once the construction is complete.


Income Generation

Investing in a built-up property is your best bet if you want a regular rental income. You can rent out your apartment whenever you want to earn some income, which is not possible if you own a plot. Plots can render income only if you construct on them and rent them out. 



Buying a plot or piece of land can be financed, but certain conditions apply. Loans for the purchase of residential plots can only be obtained if the land has been approved by the local authority. Some banks allow 80% Loan-to-Value (LTV), but in the case of resale land, only about 50% of LTV is allowed.


Your investment in land or apartment must be well thought decision analyzing all the above aspects in mind to yield maximum returns on your investment. In terms of good returns on investment, buying a plot always scores well as the rate of appreciation is faster.


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