G+2: An Emerging Real Estate Model


As we said in our earlier post that we went to the fields in Jaipur to explore this sector further, today we share with our readers a prevalent model in this space. During our visit to actual sites and meeting with various people closely associated with RealT, we came across a model that is highly prevalent in Tier 2 cities at present. Let’s share some insights on this topic.


What exactly is G+2?


Due to recent developments, Tier 2 cities have stringent land by-laws. These laws restrict unplanned and uneven growth of these cities which are on their way to become mega cities. One such by-law restricts the vertical growth of town to a certain limit, based on the size of plot and width of the road on which the plot is located.

A typical G+2 construction


Paying full respect the laws, Builders & Developers have devised an alternative to make optimum use of the available plot and have come up with the concept of Ground+2 floors. Now depending on the designs prepared by the Architect, Builder can erect 4-6 flats on that small piece of land. Generally these plans are designed in a way that there is ample space for parking of 4-6 vehicles alongside the building. If the dimensions of plot doesn’t allow ample parking space, Builder can even go for Stealth floor for parking. Even in this case, the next 3 floors will be counted as G+2.

G+2 with stealth floor



Benefits of G+2

  • Ideal for mini-builders
  • Cost of construction minimizes due to economies of scale (multiple constructions on the same piece of land)
  • Pretty good profit margin
  • Easy to sell
  • Time-to-complete the project is small




Why is it lucrative for mini-builders?


Small Investors and new entrants prefer this model of RealT so much so that you would see hundreds of such projects going on in Jaipur all around. The reason being:

Low cost of Entry
These projects can be initiated with relatively small amount of money as compared to traditional huge projects.
Minimized Risk
Even if all the flats are not booked, the builder is safe as he is sitting on a valuable asset.
Funding Operational Costs
The operational costs of next floor can be funded by the bookings of previous floor.
Controlled Expansion
The builder is free to pull back from going deep into the project at any time.


Closing Remarks: Want to foray into Real Estate? – Go for the above model, but don’t forget to do a proper market analysis for demand side!


---- Thanks for reading. Your comments will help us improve our analysis. J ----


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