I faced a genuine dilemma for eight months: buy a flat in Crossings Republik for ₹60-65 lakh, or buy a plot in Raj Nagar Extension for a similar budget and construct separately. I eventually chose the plot route. Here is my complete analysis.
Raj Nagar Extension is a developing sector on Ghaziabad's western side with multiple plotted colonies approved by GDA (Ghaziabad Development Authority). The area is approximately 8-10 km from NH-9, reasonably connected, with markets, schools, and hospitals already functional. It is not a remote location — this is a developing urban suburb, not agricultural land.
Plot sizes in my evaluation: 50 sqyd plots at ₹30-35 lakh, 60 sqyd at ₹38-45 lakh, 80 sqyd at ₹50-60 lakh. I bought an 80 sqyd plot at ₹57 lakh in a GDA-approved colony with clear title and registered sale deed.
Construction economics: for G+2 (ground plus two floors), construction cost in this area is approximately ₹1,500-1,800 per sqft for decent quality. An 80 sqyd plot gives me 720 sqft per floor. G+2 gives 2,160 sqft total. Construction cost at ₹1,600/sqft = ₹34-35 lakh. Total investment: ₹57 + ₹35 = ₹92 lakh.
What I get: a 3-floor building where I use the ground floor (full unit), and rent out first and second floors. Rental income in Raj Nagar Extension for a proper 2BHK floor: ₹12,000-14,000/month per floor. Two floors = ₹24,000-28,000/month. This effectively covers most of my construction loan EMI.
Versus buying a flat at ₹65 lakh: monthly EMI of approximately ₹57,000 with no rental income from the purchased flat (assuming owner occupancy). My plot+construction model generates ₹24,000 in rental to offset the larger total EMI of ₹80,000 on ₹92 lakh — net outflow of ₹56,000 monthly. Similar monthly cash flow for significantly more asset value and monthly rental income that grows over time.
This calculation drove my decision. The plot route is more complex but financially superior over a 10-year horizon for a buyer who can manage the construction process.
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Listed price: ₹45.00 L – ₹90.00 L. Help the community by logging the actual price per sq ft.
The financial modelling you've done here is excellent and this kind of analysis is rarely discussed on property forums which tend to focus on ready flat comparisons. The rental income offset on a constructed plot is a legitimate wealth-building mechanism that several of my Ghaziabad neighbours have used successfully.
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@ankitsharmaghz
Construction loan for plot+construction is worth clarifying for readers: you need to arrange these separately. Plot purchase gets a land loan at 7.5-9% for 15 years. Construction loan is then a home loan on the building at 8.5-9.5%. Some NBFCs offer combined composite loans. Plan the financing before buying the plot.
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@nidhirastogi
The 5-year land holding before construction — are you doing immediate construction or waiting? Land in Raj Nagar Extension has also appreciated and sitting on it for 2-3 years before construction is itself a reasonable strategy if you don't need the rental income immediately.
