By Brick & Bolt’s CEO and Co-founder Mr. Jayesh Rajpurohit: As India’s real estate market evolves, homeownership remains one of the most significant financial and emotional investments an individual can make. With the rising demand for personalized living spaces, the debate between buying a pre-built home and building a custom residence has gained momentum.
While buying a home offers convenience, many homebuyers today are looking for more design flexibility, better space utilization, and the ability to incorporate sustainable and smart home features, making self-construction an attractive choice.
As per the FICCI – Anarock report on “Homebuyer Sentiment Survey – H1 2024”, demand for ready-to-move-in homes has seen a notable decline. In 2020, the ratio of ready-to-move homes to newly launched projects was 46:18, but in 2024, it has shifted to 20:25.
This trend suggests that more buyers are now willing to build homes, prioritizing modern amenities, better customization, and long-term value over immediate availability.
Key Considerations to keep in mind about Building or Buying a Home
Cost Considerations: Buying vs. Building
Building a home may have a higher initial cost, but it proves to be a smarter investment in the long run. With the freedom to select durable materials and energy-efficient designs, homeowners can significantly cut down on maintenance and utility expenses while also enjoying the flexibility to customize and build a home as per their unique needs.
Unlike pre-built homes that may come with hidden repair costs, constructing your own home ensures quality from the start, minimizing unexpected financial burdens and enhancing long-term savings.
Higher ROI and Long-Term Gain
Building a home can provide a higher return on investment (ROI) compared to purchasing a pre-built property, largely due to the appreciation of land value.
According to the news articles published in the Hindustan Times, in metro cities like Bengaluru and Hyderabad, plotted developments have experienced an annual price appreciation of 15-25% over the past five years, compared to apartments, which typically appreciate at 5-10% per year.
Also, building your own home means fewer major renovations, unlike older apartments that may demand costly upgrades for plumbing, wiring, structural repairs etc.
Financial Stability and Long-Term Resilience
A survey by Housing.com and NAREDCO indicates that 48% of respondents prefer investing in real estate over other asset classes, such as stocks, fixed deposits, and gold. In metro cities, ready-to-move homes offer convenience but often come at a premium, with limited customization and higher maintenance costs over time.
On the other hand, building a custom home in these high-growth localities ensures not just a dream living space but also a future-proof investment.
As land prices continue to appreciate, investing in a custom-built home isn’t just about lifestyle—it’s about securing long-term financial stability and wealth creation.
Let’s break it down:
| Factor | Building a Home | Buying a Home |
| Initial Investment | Assume ₹1.5 crore for a 1,000 sq. ft. home, in which land cost – ₹1.2 crore, considering ₹3500 to ₹13000 per sq ft. Construction cost- ₹30 lakh, considering a basic cost of ₹1800 to ₹2200 per sq ft | ₹1.5 crore for a 1,000 sq. ft., ready-to-move home |
| Appreciation Potential | 15-25% per year (land and property value appreciation) | 5-10% per year (mainly property appreciation) |
| Customization Cost | Full control over materials selection, floor plan layout, design, elevation and future expansions | Limited customization, leading to potential renovation expenses |
| Renovation & Maintenance Costs (within 5-10 years) | ₹2-5 lakh (minimal, as construction is new) | ₹10-20 lakh (for upgrades like flooring, modular kitchen, plumbing, and interiors) |
| Rental Income Potential | Higher ROI if designed with rental units, generating ₹50,000 – ₹1 lakh/month in cities like Bangalore, Noida, | Standard rental income, dependent on developer offerings and market conditions |
| Long-Term Value | Higher resale value due to superior construction quality and increasing land prices | Moderate appreciation may require renovations to enhance the resale potential |
| Estimated Resale Value | Estimated resale value: ₹3.5 – ₹5.5 crore (land and home value appreciation) | Estimated resale value: ₹2.5 – ₹3 crore (dependent on locality and condition) |
| ROI After 10 Years | (Resale Value + Rental Income – Maintenance) = ₹6.29 Cr | (Resale Value + Rental Income – Maintenance) = ₹3.35 Cr |
Customization for Evolving Lifestyles
The FICCI-Anarock Homebuyer Sentiment Survey – H1 2024 indicates a significant shift in preference towards 3BHK units, with 51% of homebuyers favouring this configuration, a notable increase from 41% in H1 2022.
With an increasing preference for custom-built spaces, homeowners are also enthusiastic about complete control over the choice of material.
Unlike ready-to-move homes, where material choices are predetermined, custom construction enables homeowners to choose high-quality, sustainable, and energy-efficient materials and also have a say in interior and exterior building design, to suit their taste.
As interiors play a crucial role in enhancing lifestyle comfort as well, custom-built homes allow you to select layouts, modular kitchen designs, premium fittings, and smart home integrations tailored to your taste.
Energy-Efficiency and Sustainability Practices
According to the Green World Building Council, green-certified homes in India can cut energy use by 30% and water consumption by 50%, significantly reducing utility costs.
Building a home allows for advanced energy-saving technologies and sustainable materials, leading to green homes, long-term costs and environmental benefits.
Additionally, government incentives, such as tax benefits on solar panels and green building materials, make sustainable construction a financially sound choice.
The Role of a Reliable Construction Partner
Building a home is a significant investment, and choosing the right construction partner can make all the difference.
A 2023 report by McKinsey & Company states that 85% of construction projects face cost overruns, with an average increase of 28% beyond the initial budget. This highlights the need for experienced professionals who can efficiently manage timelines, costs, and quality standards.
A trusted construction partner ensures transparency, adherence to deadlines, and superior craftsmanship, ultimately giving you a home that aligns with your expectations and long-term investment goals.
This professional support not only enhances the quality and durability of your home but also makes the entire process smooth, cost-effective, and stress-free.
Buying or Building a Home: Making the Right Choice
Building a home is more than just a financial decision; it’s about creating a space that reflects your lifestyle, values, and future needs.
While buying a ready-move home offers speed and convenience, it often comes with compromises in customization, quality, and long-term cost efficiency.
On the other hand, constructing your own home gives you complete control over design, materials, and energy efficiency, ensuring a space that truly meets your expectations.
At BricknBolt, India’s No. 1 tech-enabled construction company, we are committed to transforming your home-building experience with 100% transparency, financial security, and unmatched quality.
Our ESCROW model ensures that your money is protected at every stage, while our in-house team of expert architects and top-tier building contractors brings your vision to life with precision and efficiency.
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