Should one buy a flat, plot or bungalow?

Buying a flat, plot or bungalow is totally the choice of an individual or family. There are many factors which should be taken into consideration before arriving at the final decision. While buying an independent land or a bungalow, one has at their advantage the choice to build a house depending upon one’s own requirement and constraints. On the other hand, a flat or an apartment is a redesigned, multi-storeyed construction where the buyer has lack of freedom to change the shape and size of the construction area. However, it benefits in matters related to security, accessibility and location advantages. Here’s an Ultimate Home Guide for you!

A comparison between flat, plot and bungalow is given below:


  • Cost – the cost of a flat depends upon the locality, services, accessibility, size, design, amenities and developer’s bond.
  • Appreciation – a flat has a limited life span as its value has a diminishing effect. After a certain period of time, there comes up a stagnancy in growth in prices. Lack of flexibility in use, modification and expansion are a hindrance to a quicker growth in this case.
  • Risk – Delay in handing over possession by the developer is one of the most common problems. Quality is often compromised by the developer to control the cost and meet deadlines whereby the effective life of flat gets reduced.
  • Bank loan – It is comparatively simpler to take a bank loan for buying a flat especially with the developer where Master file is already approved by the bank.
  • Investment – Flats are ready to generate handsome income from the first day of taking possession if given on rent. Also, there are less chances of litigation with the modern laws in place.
  • Liquidity – The depreciation in construction reduces the growth rate, therefore its value grows with a diminishing rate.
  • Gated community – One has an advantage of flat if it is in a gated community where one can enjoy with an amicable neighbourhood whilst making the most of all amenities provided by the builder with added security and amenities.


  • Cost – The cost of a plot depends upon the plot area, approach, location, permissible activity and availability of space.
  • Appreciation – Land cannot be created hence it is the most appreciable asset till date. There are few chances that the land value goes down. Flexibility of option to build as per future requirement helps the cost of land and property to increase steadily.
  • Risk – As land is prone to litigation, it is difficult to come out of it once anyone is involved.
  • Bank loan – Here, the buyer has limited options as banks usually do not provide loans for land or plots. Very few of them offer but the percentage of loan is not more than 50%.
  • Investment – From the point of view of investment, land generates a very low income if rented and sometimes it is difficult to reoccupy the land if the tenant refuses to leave and pushes the property into litigation. But if guarded properly, it is the best option for investment.
  • Liquidity – Land/plot is always in demand. The value usually appreciates immediately and always due to zero depreciation on land. Moreover, when new development plan is approved and the proposals for housing or transportation like road widening/construction are planned in your area, land rates may appreciate further. Also, it may get a boost if upcoming development like a commercial centre or industrial park is envisioned in the 20 year Development Plan for that area. This could further enhance the approachability and saleability of the plot.
  • Gated community – Plots may be in a gated community but there are very few such schemes at present.


  • Cost – The cost of a bungalow is more in comparison to flat as one is required to buy a land and construct upon it. Also, the cost varies depending upon many factors like the locality, land value and size. It tends to increase by the end.
  • Appreciation – With space availability vanishing at a fast pace in every city, it is expected that the value of bungalow may appreciate very quickly. Value for money is the phrase that’ll go well in the case of a bungalow.
  • Risk – The bungalow has a risk of land only. If this property is under litigation or not certified as NA Land, issues may arise. Moreover, resale of a constructed bungalow is not as easy as is in the case of a flat or a plot.
  • Bank loan – It is easier to avail a bank loan if one is buying a pre-constructed bungalow else it may be difficult to buy a land first where you get a limited loan after which you have to construct a house.
  • Investment – As an investment option, bungalow can be profitable as it has land which appreciates more than flats. Also, one may receive a sound rental income if the bungalow is put on rent and at the same hand have the flexibility to reconstruct it whenever desired.
  • Liquidity – Since the depreciation is only on the construction, the bungalow appreciates more and can be sold to a buyer who is particularly seeking a bungalow and does not want the hassles of construction.
  • Gated community – There are many bungalow colonies in gated community along with the flats. However, this advantage may not always be there as a bungalow is mostly constructed on an independent plot.

Ultimately, be it a flat, plot or bungalow, each one has its own pros and cons which need to be weighed in relation to individual preferences, present situation and its respective parameters. 

The information has been curated from various sources and may not be verified as per RERA guidelines *
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