Do Builder Floors Provide a Good Investment Opportunity?

Priyatham Kumar, Founder, Homes247

Homebuyers are exploring various property options, from affordable housing to luxury flats, apartments, and duplexes, aligning with their financial capabilities and preferences. And for those who value independence and distinctive living spaces, builder floor homes offer a compelling choice.

What are Builder Floors?

A builder floor apartment typically consists of low-rise housing unit, spanning the ground, first and second floors, each serving as an individual residence. These appeal to a certain segment of Indian populace who seek a quieter, more private lifestyle,  to avoid towering complexes, a need for more space and also who  have more family members.

How Builder Floors are Different from Other Residential Properties

Builder floors offer a distinctive residential option compared to apartments, independent houses, and villas due to their unique structural layout and placement within a building. Unlike apartments in tall buildings, builder floors occupy an entire level of a low-rise structure with no shared walls. Builder floors typically lack extensive common areas found in apartment complexes, providing each floor with its own entrance and potentially fewer shared amenities. Additionally with no surrounding land for a garden or yard this distinguishes them from standalone homes. Essentially, they offer a unique combination of features, including increased privacy, potentially more spacious interiors and fewer communal spaces.

Advantages and Disadvantages of Builder Floors

Builder floors offer unique features that attract certain buyers, yet they also pose potential drawbacks that could influence purchasing decisions. Here’s a brief overview for consideration.

Advantages

• Independent living and privacy – Builder floors offer enhanced independence and privacy compared to conventional apartments. Each floor is dedicated to a single owner, equipped with its own entrance, utilities, and maintenance autonomy.
• Personalization – This property offers owners the freedom to customize their living space to match their unique preferences and style. They can make interior and architectural changes to tailor the space according to their needs and tastes.
• Investment Potential: Builder floors offer promising returns. Their customization and privacy enhance resale value and rental potential, fostering property appreciation. Hence, they present a favourable long-term investment option for buyers.

Disadvantages

• Limited Amenities – Builder floors generally lack the shared amenities commonly found in apartment complexes, such as gyms, swimming pools, or community centers.
• Security Concerns – Security arrangements in builder floors may differ based on the builder and location. While high-rise buildings commonly offer security measures such as guards, gated entry, or CCTV surveillance, these may not always be present in builder floors. Therefore, residents may need to arrange for personal security measures.

Additionally, builder floors offer a cost-effective option compared to villas or standalone houses, although their prices might be higher than flats or apartments in high-rise buildings.

Factors to Keep in Mind When Investing in Builder Floors

When buying a builder floor, it’s crucial to do some key checks. Start by verifying the property title deed at the local registrar’s office. Look into the builder’s track record and past projects to gauge quality. Confirm builder’s reputation and adherence to regulations. Check the base and circle rates, and ensure that the sanction plan and floor area ratio comply with municipal rules. Also, make sure occupancy and completion certificates are in order to avoid any issues. For resale flats, ensure that the seller has settled utility charges.

Builder floors present a distinctive lifestyle option and can prove to be an attractive investment for potential buyers. However, it’s crucial to thoroughly evaluate individual needs, financial capabilities, and other requirements to make a well-informed decision when purchasing.