## The headline finding
Across 47 Hyderabad properties tracked between 2015 and 2025 — 23
plotted-development plots and 24 apartments in comparable corridors
— **plotted developments returned ~14.6% CAGR to the holder, against
~7.9% CAGR for apartments**, after adjusting for carrying cost.
Before adjustment for carrying cost, the gap is narrower (15.4% vs
10.1%). Carrying cost is the variable most discussions ignore. We
spend most of this brief on it.
## Methodology
- **Universe:** 47 properties, all owned for the full 10-year
window, all in our advisory book.
- **Plot set:** 23 plots, mean size 285 sq.yd, in Tellapur,
Mokila, Kollur, Shadnagar, Pedda Golconda. HMDA-approved.
- **Apartment set:** 24 apartments, mean carpet 1,720 sq.ft, in
Gachibowli, Madhapur, Kokapet, Kondapur, Tellapur. RERA-registered
projects from completion onwards.
- **Returns measured:** purchase price → sale or current
market price (Q1 2026), CAGR.
- **Two assumptions:**
1. *Holder lives elsewhere.* Apartments are rented;
plots are vacant. We do not net rental income against
carrying cost — we treat them as separate cash flows.
2. *Tax neutralised.* We use pre-tax CAGR. Capital gains
treatment is similar enough across the two assets that
the comparative reading does not move.
## Plot returns: the data
| Cohort | Mean entry ₹/sq.yd | Q1 2026 ₹/sq.yd | CAGR |
|--------|--------------------|------------------|------|
| Tellapur (2015 entries) | 14,200 | 58,400 | 15.2% |
| Mokila (2015 entries) | 11,400 | 46,200 | 15.0% |
| Kollur (2016 entries) | 9,800 | 47,300 | 17.0% |
| Shadnagar (2017 entries)| 4,400 | 18,900 | 17.5% |
| Pedda Golconda (2018) | 6,200 | 24,800 | 16.0% |
| **Pooled mean** | — | — | **15.4%** |
What the data shows is that plotted-development returns are tightly
clustered. The variance across micro-markets is low. The corridor
matters; the year of entry matters slightly less than people think.
## Apartment returns: the data
| Cohort | Mean entry ₹/sq.ft | Q1 2026 ₹/sq.ft | CAGR |
|--------|---------------------|-------------------|------|
| Gachibowli (2015) | 5,800 | 14,200 | 9.4% |
| Madhapur (2015) | 7,200 | 17,400 | 9.2% |
| Kokapet (2016) | 5,400 | 16,800 | 13.4% |
| Kondapur (2017) | 5,200 | 11,800 | 9.5% |
| Tellapur (2018) | 4,400 | 9,400 | 11.4% |
| **Pooled mean** | — | — | **10.1%** |
Kokapet is an outlier — the corridor underwent a transformation
that lifted apartment prices unusually. Strip Kokapet and the
pooled apartment CAGR is ~9.4%.
## The carrying-cost gap
This is where most comparisons fall apart. Apartments carry
material annual cost; plots do not.
| Annual cost | Plot | Apartment |
|-------------|------|-----------|
| Property tax | ₹3,000–₹8,000 | ₹6,000–₹18,000 |
| Maintenance / association | ₹0 | ₹4–₹8 / sq.ft / month |
| Repairs (10-yr average) | ₹0 | ~0.4% of value / yr |
| Vacancy (rental) | n/a | 4–8 weeks / yr |
| **Effective annual drag** | **~0.1% of value** | **~2.8% of value** |
Compounded over 10 years, the apartment's 2.8% drag turns
nominal 10.1% CAGR into a *holder-realised* 7.9% CAGR. Most
buyers never net this out, because rent receipts come in
gross.
Plotted developments return what they print, minus a sliver of
property tax. That is structural, not cyclical.
## Why apartments still belong in some portfolios
Three reasons we still recommend apartments for some clients:
- **Liquidity.** A 1,800 sq.ft apartment in Gachibowli sells
in 4–8 weeks. A 600 sq.yd plot in Kollur takes 3–6 months
on average.
- **Yield matters more for some buyers.** If you need 3–4%
rental yield on the way through, a plot does not deliver
it. An apartment does.
- **Construction risk avoidance.** A ready apartment is
ready. A plot eventually needs a house, and construction
is its own discipline.
The right portfolio mix depends on horizon, liquidity needs and
income profile. We are not religious about land.
## Conclusion
For a 7+ year horizon and no liquidity pressure, plots win
fairly cleanly on the post-cost return. For a shorter horizon,
liquidity needs, or yield-dependent income, apartments win.
The two are not in competition; they are in different roles in
a portfolio.
> "The carrying-cost gap is what separates the gross return
> from the realised return. The realised return is the only
> one that pays for your daughter's college."
We will publish a refresh of this study at the end of 2027.
The corridors that look obvious today will look less obvious
then; that is the point of the next study.
