Apartments vs Plots: Which One is a Better Investment?

Investing in real estate is a difficult task. One must choose a safe route, but one must also consider what to buy–an apartment, a built-up house, or a plot of land. The selection is based on your requirements, lifestyle preferences, and other factors such as taxation and the availability of a bank loan.

Every individual in the investment community has the same question: what kind of investments are more profitable, and where should they put their hard-earned money? We tried to arrive at a conclusion based on several variables such as liquidity, appreciation, and the necessity to reconsider. As you can see, there is no black and white when it comes to determining the greatest investment decision. This article is about Apartments vs Plots: Which One is a Better Investment?

Apartment Vs Plot

First, understand the difference between an apartment and a plot.



Limits in Customization


Liquidity issues

Liquidity in abundance

Paperwork and transfer take time

Easy transfer

Build quality has been compromised.

Possible to employ higher-quality materials.

Up to you to choose the size and design

Constraints of size and design

Think about essential considerations before choosing between the two, including high returns, easy financing,  and tax benefits. This article will help you learn more about the advantages and disadvantages of these two real estate investment possibilities.

Property Value

Apartments and plots will both rise in value over time, depending on various circumstances. Any additional connectivity, such as a metro line, transportation center, or road, stimulates growth, attracts more people to the region, and raises demand for your home.

Because rental returns are increasing, the value of flats tends to rise over time. Similarly, when land availability decreases and infrastructural development accelerates, the value of plots is projected to rise, especially in larger cities.

Modification Flexibility

While the age of a block of land has no bearing on its quality, the state of a flat might degrade over time. Houses are subject to wear and tear, and adequate care may necessitate remodelling or reconstruction. Furthermore, you cannot increase the size of a flat or change its layout in the future. On the other hand, plots provide more options when it comes to constructing a structure, whether it’s an office space or a standalone residential property.


What is the difference between a plot and an apartment when it comes to revenue? After you invest in a readymade house, you can start earning rental revenue right away. On the other hand, a plot will not generate rental money until you build a house on it. However, if you build an apartment on your property and sell the individual apartments, you will profit long-term.


Between a plot and a flat, which is easier to finance? A home loan will readily meet your bills if you buy a flat. It can only be used to purchase a completed or under construction home.

If you want to buy an empty piece of land, you can take out a plot loan. This loan can only be used to acquire a plot of land for residential use.

Tax Benefits

If you buy a home with a home loan, you can deduct the interest paid up to Rs. 1.5 lakhs off your tax bill. Furthermore, repayment of the principal amount is tax-deductible up to Rs. 1 lakh. In the case of plots, the interest deduction is only available after the construction is done.


While both plots and apartments offer advantages and disadvantages, you should decide after thorough consideration. If you have a limited budget, consider purchasing a plot in a desirable location. You can obtain a good return on your investment because they appreciate it faster than apartments. While luxury apartments take longer to appreciate, they can provide rental income almost immediately.