Independent Houses Vs Row Houses Vs Apartments – Which is the Best Option for Investments?

Posted On March 11, 2024

Indian real estate has many options to meet the diverse needs of homebuyers and investors. Investing in real estate has been a time-honoured, traditional investment route in India. And if you are a newbie wishing to become a homeowner or invest in a property, you are at the right place. At Save Max, we understand what you need and ensure hassle-free real estate transactions.

But before you start your investment journey, we recommend you understand the basics of real estate in India. Divided broadly into four sectors, each real estate option has advantages and risks, and investors would do well to understand the available choices.

By far the most popular sector, residential real estate encompasses living spaces such as apartments, villas, independent houses, and flats. In India, residential real estate is considered a very safe investment.

The commercial sector includes properties designed specifically for business purposes, such as office spaces, retail stores, shopping complexes, and warehouses. Investing in commercial properties can yield high returns.

Industrial properties cater to manufacturing and production activities, including factories, industrial sheds, and manufacturing units. Investors are drawn to industrial properties for their potential for rental income and long-term appreciation.

Land is the basic foundation for all real estate and is primarily divided into agricultural and non-agricultural land. While agricultural land is dedicated to farming activities, non-agricultural land can be utilized for residential, commercial, or industrial purposes. Land investment holds appeal due to its potential for appreciation over time, making it an attractive option for long-term gains.

Choose Between Independent Houses/Row Houses/Apartments

India’s real estate market offers buyers & investors several choices like apartments, rowhouses, and independent houses. This guide examines the features, pros, and cons of bungalows/separate houses, rowhouses, and apartments, aiding first-time buyers and seasoned investors. Whether you’re eyeing apartments in Gurgaon, residential properties in Pune, this article offers insights to help you decide.

Independent Houses

In India, independent houses are standalone residential properties built on individual plots of land. These properties offer homeowners complete ownership over their dwellings, with maximum privacy and exclusivity. The more luxurious bungalows and villas are characterized by their architectural charm, distinctive design, and spacious living areas, often including multiple bedrooms, bathrooms, a living room, a dining area, and outdoor spaces like gardens or backyards.

Advantages of Independent Houses

• Unlimited Customization: Homeowners can customize every aspect of their independent house, including the design, layout, and construction, to suit their preferences and lifestyle.
• Ample Space: Independent houses typically offer more living space than apartments and rowhouses, making them suitable for larger families or individuals who value comfort. Additionally, they may include gardens or backyards for outdoor activities.
• Privacy and Freedom: Independent houses provide unparalleled privacy as they are not connected to other properties, allowing homeowners to enjoy freedom regarding noise levels, personal preferences, and lifestyle choices.
• Ownership of Land: Owners of independent houses have full ownership rights over the plots of land on which their property is built. They can expand their property, invest, or engage in gardening activities.
• Resale Value and Appreciation: Independent houses often have a higher resale value and appreciate more rapidly than apartments or rowhouses due to their exclusivity and land ownership.

Disadvantages of Independent Houses in India:

• Higher Costs: Independent houses cost more compared to apartments or rowhouses due to the expenses associated with land acquisition, construction, and maintenance.
• Maintenance Responsibility: Homeowners are responsible for maintaining and repairing their property, including the house itself, the garden, and any additional amenities. This can be time-consuming and costly.
• Security Concerns: Independent houses are more vulnerable to security risks than apartments or rowhouses, requiring homeowners to spend money on security measures such as surveillance systems and alarms.

Rowhouses

Rowhouses, also called townhouses, present a unique housing option combining the best of apartments and independent houses. As the name suggests, rowhouses are constructed in rows, with adjoining units sharing common walls.

Rowhouses provide a sense of community while maintaining individual privacy and independence. The communities often provide shared amenities like parks, playgrounds, swimming pools, and clubhouses, adding to the overall living experience.

Pros of Rowhouses:

• Affordability: Compared to bungalows or independent houses, rowhouses generally come at a more accessible price point, appealing to first-time buyers or those with budget constraints.
• Community Living: Rowhouses cultivate a strong sense of community, with shared amenities and opportunities for social interaction among neighbours, fostering a supportive living environment.
• Low Maintenance: With smaller outdoor spaces and shared maintenance responsibilities, rowhouses typically entail lower upkeep efforts and costs than standalone properties.
• Security: Living within a rowhouse community offers an added layer of protection, as neighbours are close and can watch out for one another’s properties, enhancing overall safety.

Cons of Rowhouses:

• Limited Customization: Due to their uniform design and layout, rowhouses offer little scope for customization or personalization, restricting homeowners’ preferences.
• Noise and Privacy Concerns: Shared walls contribute to noise transfer between units, compromising residents’ privacy and leading to potential conflicts with neighbours.
• Space Constraints: Rowhouses have smaller living spaces than bungalows, posing challenges for larger families or individuals seeking ample room for their lifestyle needs.
• Rowhouses balance the communal aspects of apartment living and the privacy of independent houses, offering a compelling housing option for diverse preferences and lifestyles.

Apartments

Apartments, or flats, are residential units within multi-story buildings or complexes. They offer a convenient and compact living space for individuals or small families.

Advantages of Apartments:

• Affordability: Apartments are often more budget-friendly than other property types, making them ideal for first-time buyers or those with limited financial resources.
• Shared Amenities: Most apartment complexes provide a variety of amenities, such as swimming pools, gyms, parks, and community halls. These shared facilities offer convenience and foster social interactions among residents.
• Security: Apartments typically feature security systems, including guards, CCTV cameras, and controlled access points, ensuring a safer living environment.
• Lower Maintenance: As an apartment owner, you share the maintenance responsibility of the building with other residents. This shared burden makes maintenance more manageable and cost-effective.
• Location: Apartments are commonly situated in prime areas, close to commercial hubs, schools, hospitals, and other essential amenities.

Disadvantages of Apartments:

• Limited Privacy: Living in an apartment means sharing walls, floors, and common areas with neighbours, leading to a potential lack of privacy and occasional disturbances.
• Size Restrictions: Apartments generally offer limited living space, particularly in metropolitan cities with smaller land parcels. This creates challenges for larger families or those requiring more room.
• Lack of Customization: Apartment owners are often restricted in making structural or design changes to their units. Renovations or modifications require approval from the housing society or management.
• Adherence to Society Rules: Apartment living implies adhering to the rules and regulations of the housing society or management committee. These rules may dictate pet ownership, parking, noise levels, etc.

Explaining Undivided Share of Land (UDS)

When buying real estate properties in India, investors need to understand the concept of “undivided share of land” (UDS). UDS denotes the proportionate ownership of common areas within a housing complex or society, typically expressed as a percentage or fraction. Understanding UDS calculations and legalities is essential as they influence maintenance charges, voting rights, and property management.

Each apartment owner holds a UDS based on their unit’s size, collectively owning the remaining land alongside other residents. This ensures shared ownership of common areas and facilities.

Similar to apartments, UDS in rowhouse complexes is distributed among owners. However, individual rowhouse units may have higher UDS, reflecting larger plot sizes.

In the case of independent houses, UDS doesn’t apply, as each homeowner owns the land on which the property sits. However, homeowners in gated communities or villa projects may receive UDS for shared amenities or spaces.

Conclusion

In conclusion, consider budget, lifestyle, and long-term goals when choosing a real estate property in India.

Apartments offer affordability and convenience, rowhouses balance independence and community living, while independent houses offer exclusivity and spaciousness.

Evaluate your needs and finances, seek professional advice, and make an informed decision that aligns with your aspirations. Happy home hunting!