India's top real estate developers step up push into plotted development

India’s leading real estate developers are accelerating their push into plotted development, a segment once dominated by unorganised players but now reshaped by branded offerings, faster cash flows and evolving buyer preferences.

 

This strategic shift is visible across markets such as Bengaluru, Chennai, Hyderabad, Gurugram, peripheries of the Mumbai Metropolitan Region (MMR) and even Tier-II cities.

 

Developers, including DLF, Godrej Properties, Brigade, Prestige, Puravankara, Mahindra Lifespaces, Rustomjee and several others have been launching large-format, plotted land communities.

 

According to Bhavya Bagrecha, fund manager of Bharat Bhoomi Fund at The Wealth Company, the pivot is structural. “The pivot to plotted development is primarily a strategy to accelerate cash flow velocity,” he said.

 

With plotted projects typically completed within 24–36 months, developers monetise land banks faster than high-rise projects that have long gestation periods (4–6 years).

 

Bharat Bhoomi Fund also invests in plotted development projects.

 

Financial metrics underline the appeal. For developers, internal rate of return (IRR) for plots is anywhere between 20 and 30 per cent, while return on capital employed (RoCE) is between 18 and 28 per cent with a fast cash-conversion cycle (up to 18 months).

 

On the other hand, the IRR for mid and premium apartments is between 10 and 20 per cent, while RoCE is between 10 and 15 per cent, according to Mayank Saksena, managing director (MD) & chief executive officer (CEO), land services, Anarock Group.

Experts highlighted that the model has already proved successful for developers. Leading developers have reported record sell-outs, reflecting a shift in buyer choices.

 

“Historically, the plotted market was unorganised and plagued by litigation and unclear titles. Institutional developers have solved this by offering ‘branded land.’ Buyers are willing to pay a 20–30 per cent premium for the assurance of clear titles and a secure, gated environment,” Bagrecha added.

 

Established developers are using brand trust as the central differentiator. Rakesh Setia, president of sales & marketing at Rustomjee Group, said, “What is very clear is that customers today prefer organised, credible developers. They want transparency on approvals, proper internal roads, utilities, security and assurance that the land is clean and development ready.”

 

DLF, one of the earliest large developers to tap the segment, says demand for independent floors and plots continues to strengthen across its key markets.

 

Aakash Ohri, joint MD and chief business officer (CBO) of DLF Home Developers Limited, said, “The rising preference for independent floors and plotted developments stems from the growing desire for privacy, individuality, and a more personalised way of living.”

 

Vimalendra Singh, CBO, residential, Mahindra Lifespace Developers, said, “Mahindra Lifespaces’ entry into plotted developments was rooted in our focus on expanding customer choice and offering differentiated residential formats. This segment complements our core residential portfolio by enabling us to serve customers seeking flexibility, individuality and long-term asset value.”

 

Puravankara, another early mover, entered the category in 2021 after Real Estate Regulatory Authority (RERA) formalised the segment. “We knew the category would open up for organised developers who could deliver transparency, planning rigour, and legal assurance,” said Mallanna Sasalu, CEO – South.

 

Other factors have equally contributed to the demand for plotted developments, primarily investors, non-resident Indians (NRIs), and second-home seekers, particularly post-Covid.

 

According to PropEquity, 470,000 residential plots worth ₹2.44 trillion have been launched in the past three and half years by developers across 10 Tier-I and II cities.

 

Experts say buyers find plots more affordable than built-up homes and better suited for long-term returns. Plotted communities by reputed developers reduce legal risks and simplify paperwork. Proposed infrastructure across city outskirts is also boosting land demand by promising future value appreciation.

 

For most buyers, plots are patient, long-horizon investments with strong capital gains potential.

 

Developers are tapping township and joint development models while expanding into Tier-II and III cities such as Jaipur, Sonipat, Indore, Nagpur, Coimbatore, Mysuru, Surat and Raipur.

 

Among major markets, Bengaluru, Hyderabad and Chennai remain the most active for plotted projects.

 

Additionally, developers believe that the segment aligns with their core high-rise residential business.

 

“Plotted development is highly synergistic with our core residential business. It enables faster project cycles, optimises certain land parcels suited to low-rise formats, and expands our customer base to include those seeking land ownership,” Sasalu said.