Residential Flats in India

Why invest in residential flats in India?

It is always a big decision when it comes to investing all your savings in a property. However, many buyers are in the dilemma of whether invest in a flat or a plot. This confusion is common in an average Indian buyer. A luxury investor with a number of properties would have gained the expertise or have advisors who are suggesting a variety of options to them. However, the common man who thinks of investing in a property will have limited knowledge and is prone to taking decisions on his own. To help such investors, here is a list of merits and shortcomings of investing in a flat. The pros and cons of investing in a plot will be discussed in detail in a different article.

Let’s see a comparison between investing in residential flats and plots.


Now that you have a brief idea about the parameters to take into consideration, let us discuss them in detail.

Parameter 1: Value Appreciation

Whether you invest in a residential flat at the heart of the city or at the outskirts, a property always appreciates at price. But the time taken for the property appreciation is slower in the city than on the outskirts. As the city expands with the growing population, the demand for properties for residence proportionately increases. It is smart to invest in a property that will fetch you rents upon occupation.

Parameter 2: Construction Flexibility

The expansion or flexibility for modification is relatively less. But on the bright side, you can modify the interiors to your liking as and when needed. With a lot of new trends in technology, you can upgrade the interiors with current designs. Your home is where you can get creative.

Parameter 3: Possession

With the current scenario of delayed projects and their approvals, possession may take longer than expected. It is wise to invest in a project by reputed builders who mostly stick to the timeline for completion of the project. Since the possession is upon completion, it is necessary for you to follow up at regular intervals about the status of completion.

Parameter 4: Risk

There are two types of risks associated with investing in real estate. First is the risk of encroachment which is valid only for vacant plots. Second is the risk of default by the developers. The fear of encroachment is valid only in the case of plots. The second type of risk need not be feared if you are investing with a reputed developer. Proper research and consultation with agents need to be done before you pay any advance.

Parameter 5: Quality

The notion that developers often compromise the quality to save costs and complete the project within the deadline is quite common. This is a risk if you are investing in an anonymous developer’s project. However, you can monitor the process of construction by frequently visiting the site and consulting with the builders on a personal front. This way you can ensure that you are taken through the process and not be the victim of neglect.

Parameter 6: Bank Finance

Bank finance should not be an issue if you are buying a flat. The bank loans are readily available to individuals investing in residential property. You should take extra care about the hidden costs like processing charges and convenience fees. The interest rates of different banks should be carefully compared before opting for a home loan.

Parameter 7: Income

Apartments generate instant revenue when given on rent. However, if you are buying it for residential purposes, it ensures tax savings on home loans.


Parameter 8: Convenience

It is highly convenient for the buyer to finally move in when the flat is completely constructed. It is also easy for the buyer to monitor the progress, once in a while, during the project instead of being there the whole time. The buyers are ensured quality services by the builders and this is generally up to the mark except in some rare scenarios.

Parameter 9: Security

The residential flats in India, nowadays, are generally in gated communities where the safety and security of the residents is the responsibility of the community as a whole. A security system, fully equipped with the latest tech and gadgets, is the main USP of the apartments that are being put up for sale by developers. This offers peace of mind to the residents who are generally concerned about the safe-being of their families and homes, altogether.

Parameter 10: Accessibility

The apartment complexes upon the beginning of construction ensure that all the necessary amenities are provided within the reach of the residents. There is always support for groceries; first-aid and slowly the amenities grow with the development of a number of apartment complexes in the vicinity, complete with schools and hospitals also.

Parameter 11: Suitability

Investing in flats is most suitable for those who do not have the time to monitor the construction of a property on their own land. It is essential for those who are working and are not accustomed to the nuances of building construction and associated activities.

Apart from these above parameters, there are several other reasons for an individual or family to invest in flats. The factors that are associated with why people live in flats are as stated above.

With new construction in Hyderabad and Visakhapatnam propping up, the people interested in buying residential flats in India are also increasing exponentially due to the affordability of luxury flats in India. The most expensive flats in India are owned by, not business magnates, but higher rung in corporate structures. This suggests the ever-expanding real estate market in India.


As you can see, owning a home comes with many great benefits!  It’s important that before you go out and purchase a home you’re fully aware of the above benefits.  Owning a home is so much more than just having a place to live!