Across cities, the overall number of housing projects being launched has dropped significantly. In the September-December 2010 quarter, 128,405 units were launched while in the April-June 2011 quarter this figure was down to 75,239 units.
In the last three quarters, the share of plotted developments in the overall number of project launches has gone up from 4 to 12%.
In its analyst presentation in May, India's largest real estate firm DLF had said that it would focus on selling plots to reduce execution risks that come with developing group housing projects. In 2011, June, the company launched a about 100 acre integrated township Garden City in Gurgaon where it sold 400 plots, raising Rs 700 crore in just one day.
A number of developers today do not want to invest money at this point of time but want quick returns that plotted developments offer. In the last few months, companies like DLF, Omaxe, BPTP, Logix, Supertech and others have launched new projects selling plots.
At the moment, over 50% of projects for Omaxe are plotted developments. "Of the 26 lakh sq. ft that we sold in the last quarter, about 17 lakh sq. ft was in plots," says Sumit Arora, V.P, investor & strategic relations at Omaxe.
Developers say that sales of plots are still robust in the country, especially in the north as investors feel this is a safer bet in today's environment.
Such a plotted development also protects companies from inflationary pressures as they are not require to buy large quantities of cement and steel that are required for group housing projects. A typical group housing project takes 24-36 months for completion compared to 12-18 months for projects selling plots.
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