What makes investing in DTCP approved plots a prudent move

Real estate has always been one of the most widely popular investment vehicles in India. As real estate value ideally goes up over time if a property is smartly located, the cash flow from it is way more predictable than most other investment options.Owing to the growing population of the country, the demand for land is invariably rising. After all, the land is needed for both housing and commercial activities. However, due to the nature of the commodity, the supply of land is pretty limited. We cannot just manufacture more land as the demand for it goes up. This, conversely, is good news for investors wanting to buy a plot of land in the hopes of fast capital appreciation. Investing in land can guarantee a pretty good profit margin due to the gap between supply and demand. The supply of land is fixed and cannot be increased or decreased in any manner. On the other hand, the demand for land keeps rising with every passing day.

The process of buying a plot of land is comparatively simpler than investing in other popular asset classes like shares, bonds, stocks, and equities. This makes plots an attractive investment option for many who have adequate funds but not a good knowledge of financial management. Moreover, land does not suffer from depreciation unlike most of the other asset classes. If you build a house and sell it off after a decade, then the value of the building would be lower than that of a new one, or else you have to spend a good sum of money on its renovation. But the resale value of simple plots is not affected by any such depreciation. However, to ensure the security of your investment, it will be a smart choice to buy a DTCP-approved plot.

Buying DTCP approved plots

The Directorate of Town and Country Planning or DTCP is responsible for all developmental activities related to structures and land in Tamil Nadu, apart from the ones coming under the municipality of Chennai. CMDA is responsible for properties falling under the municipality of Chennai. DTCP approval not only grants the privilege of land ownership but also the right to use the property for the specific purposes approved by the authority.

There are many advantages of choosing to invest in DTCP-approved plots, here are some of the major ones:

• Buildings developed on plots approved by DTCP are almost impossible to demolish without having proper legal backing. However, this level of security will not be available to the property owners having land that is not DTCP approved.

• DTCP approval contributes to a superior level of transparency in all real estate transactions. Land values of these plots tend to be greater as well, which invariably pushes up their resale value.

• Banks are willing to provide loans for construction work carried out on DTCP-approved plots.

• DTCP-approved plots are pretty safe investment vehicles as they come with all the proper documents and paperwork needed to prove their legality.

There are many real estate companies that sell DTCP approved plots in Thirumazhisai and its nearby regions. Every real estate project approved by DTCP is assigned a unique number. You can call up their office to confirm the approval of the property with the number.

Author bio: The writer of this article has been involved in the real estate business for about two decades. She is also quite passionate about blogging and writing. With her blog posts, she aims at sharing her valuable knowledge and insights with her readers.

The writer of this article has been working in the realty sector for the past few decades. In his free time, he enjoys writing blog posts and articles.