Developers are looking at converting land banks into plots resulting in an increase in plotted developments in the city driving cash flows and making the city a destination for investors. These are popular with HNIs NRIs and IT professionals. These turn out to be beneficial to developers who do not have to pay interest costs on such developments.
The increase in land prices resulted in apartment culture in the city during the mid-70s, and was encouraged by the demand from the IT sector. The segment attracted more buyers since the minimum investment amount was less allowing scope for high capital appreciation. There are advantages too as there are no utility bills or mortgage payments and less land tax. The other major attraction is independent living with better amenities.
Though the reason for developing plotted land is cash generation, the locations in suburbs may not immediately serve this purpose. The plots in these locations are only investment destinations. A popular investment choice among locals, the response for plotted land developments is higher when the local administration upgrades infrastructure such as roads, flyovers, and also introduces transit projects that enhance connectivity.