Apartment vs villa vs plotted development

1.6.1 What is the difference between an apartment, a villa and a plotted development?

The difference is what the promoter builds and what you receive. In an apartment project, the promoter builds a building and sells you one self-contained unit in it. The land, lifts, staircases, terraces and parks are common areas that all owners share. In a villa project, the promoter builds separate houses inside one project. Each house is yours, but the roads, gates, water systems and clubhouse are usually shared. In a plotted development, the promoter develops land into plots, lays roads and services, and sells you a plot. You then build your own house, with your own approvals and money. RERA covers all three. Section 2(zn) of the Act defines a “real estate project”. The definition includes the development of a building, or of “land into plots or apartments”, for sale. So the same law, the same K-RERA portal and the same promoter duties apply to each type.

Point	Apartment	Villa	Plotted development
What you buy	One unit in a building	One house in a project	One plot of land
Who builds your home	The promoter	The promoter	You, after you buy
What is shared	Land, lifts, stairs, terraces, parks, services	Roads, gates, services, amenities	Roads, parks, drains and civic amenity sites in the layout
K-RERA registration	Needed above the section 3 limits	Needed above the section 3 limits	Needed above the section 3 limits
GST on the sale (see below)	5%, or 1% if affordable, while under construction	Sachi’s reading: same as an apartment	Sale of land is outside GST

Source: RERA Act 2016, sections 2 and 3; GST Council FAQ, 7 May 2019; CGST Act, Schedule III. Checked 9 October 2026.

1.6.2 How does RERA treat apartments, villas and plots?

RERA treats all three as real estate projects, so each must be registered with K-RERA before the promoter markets it. Section 3(1) says no promoter shall advertise, book or sell “any plot, apartment or building” in a planning area without registration. Section 3(2)(a) gives one size exemption. Registration is not needed if the land is 500 square metres or less, or if there are eight apartments or fewer, across all phases. For a plotted layout, only the 500 square metre test clearly applies, because the second test counts apartments. Each phase counts as a separate project. The Act’s definition of “apartment” in section 2(e) is wide. It covers a “dwelling unit” or “flat” that is a self-contained part of a property “in a building or on a plot of land”. Sachi’s reading: a villa sold in a project is an apartment under RERA. The definition of “promoter” in section 2(zk)(ii) covers a person who develops land into plots, “whether or not” they also build on the plots. So a plot seller is a promoter with the same duties.

RERA rule	What it says	What it means for you
Section 2(e)	An apartment can be a dwelling unit “on a plot of land”	A villa has the same RERA protection as a flat
Section 2(zk)(ii)	A person who develops land into plots is a promoter	A plot seller has promoter duties
Section 3(1)	No booking or sale without registration, in a planning area	Ask for the K-RERA number before you pay
Section 3(2)(a)	Exempt if land is 500 sq m or less, or 8 apartments or fewer	Very small projects can be outside K-RERA

Source: RERA Act 2016 (PDF on the K-RERA portal), checked 9 October 2026.

The K-RERA list of registered projects includes all three types. Project names on the list include plotted developments, villa projects and apartments. Search the project name or promoter name, and open its detail page.

1.6.3 What do you own, and what is shared, in each type?

In all three types, you own your unit or plot, and the common areas go to a group. Section 11(4)(f) of RERA makes the promoter execute a registered conveyance deed “of the apartment, plot or building”. Section 17(1) also gives the “undivided proportionate title in the common areas” to the association of allottees or the competent authority. Section 2(n) lists common areas. The list includes the entire project land, staircases, lifts, terraces, parks, play areas, water tanks and central services. In an apartment, this means you share the land with every other owner. You hold an undivided share, not a marked piece of ground. In a villa project, you share the roads, services and amenities. Whether you get a marked plot under the house depends on the sale deed, so read it. In a plotted development, your plot is a marked piece of land. The roads and parks can go to the association or to the competent authority, such as the local body.

Type	What your deed gives you	Who gets the common areas
Apartment	One unit plus an undivided share of the land	Association of allottees or the competent authority
Villa	One house; check if the deed also gives a marked plot	Association of allottees or the competent authority
Plotted development	One marked plot	Association of allottees or the competent authority

Source: RERA Act 2016, sections 2(n), 11(4) and 17, checked 9 October 2026.

Section 11(4)(d) makes the promoter provide and maintain essential services “on reasonable charges” until the association takes over. Section 11(4)(e) makes the promoter help form the association. If no local law applies, the association must be formed within three months of a majority of allottees booking. Ask the promoter, in writing, which body will own the roads and parks in your project. Ask also what the monthly charges will be after handover.

1.6.4 What must you check before buying a plot in a plotted development?

Check the K-RERA registration, the land use and the layout approval before you pay. A plot is only useful if you can build on it, and three records decide that. First, the K-RERA registration matters. RERA section 4(2)(c) makes the promoter file an authenticated copy of the approvals with the application. Second, the land must be approved for the use you want, such as residential. The BMRDA portal lists “Change of Land Use” and “Assigning New Land Use” as services separate from layout approval. Third, a planning authority must sanction the layout of plots, roads and parks. In the Bengaluru Metropolitan Region, BMRDA lists “Subdivision Layout Approval” as a service. Ask the promoter for the layout approval order and its number. Then check the order with the authority that issued it, and ask a lawyer to check the title.

Check	Where to check it	Red flag
K-RERA registration	rera.karnataka.gov.in project search	No number, but the layout is over 500 sq m and in a planning area
Land use for residential	Land use change order or master plan, with the planning authority	Agricultural land with no land use change record
Layout approval	Approval order from the planning authority for the area	Only a brochure map, no order number
Roads, drains, water, power	Sanctioned layout plan and the agreement for sale	Services described as “proposed” with no date
Building rules for your plot	Local authority building bye-laws for the area	Promoter cannot say how many floors are allowed

Source: BMRDA portal, services and planning authorities, and RERA Act 2016, section 3, checked 9 October 2026.

The authority for your plot depends on where the land is. The BMRDA portal lists local planning authorities, such as Anekal, Hoskote, Nelamangala, Kanakapura and the Bengaluru International Airport Area Planning Authority. Sachi’s reading, unverified: inside the core Bangalore local planning area, BDA is the planning authority, not BMRDA. Sachi could not load the BDA website to confirm this. Sachi has also not checked what planning role the Greater Bengaluru Authority (GBA) now has. Ask the promoter which authority issued the order, and check the order with that authority.

Sachi’s reading: after you buy the plot, your own house needs a separate building plan approval from the local authority. Confirm the rules for your plot with that authority. Also, when you build your own house on your plot, you are not a promoter. So RERA does not protect you against your own contractor. Your contract with the builder you hire is your protection.

1.6.5 How does GST differ for an apartment, a villa and a plot?

GST depends on whether you buy construction or land. An under-construction apartment pays GST because the law treats construction for a buyer as a service. Schedule II, paragraph 5(b) of the CGST Act says so. The exception is when the entire price is received after the completion certificate or first occupation, whichever is earlier. The GST Council FAQ of 7 May 2019 gives the effective rates from 1 April 2019. An affordable apartment pays 1% without input tax credit. Other residential apartments pay 5% without input tax credit. The rates are on the total price, after a deduction for the land value. In Bengaluru, an affordable apartment has a carpet area of up to 60 square metres, and a gross amount of up to ₹45 lakh. A plot is different. Schedule III, paragraph 5 of the CGST Act says the “sale of land” is neither a supply of goods nor a supply of services.

Purchase	GST treatment	Source
Affordable apartment, under construction	1% of the total price, without input tax credit	GST Council FAQ, Q1 and Q2
Other apartment, under construction	5% of the total price, without input tax credit	GST Council FAQ, Q1
Apartment or villa, full price paid after the completion certificate or first occupation	Not a supply of service under Schedule II 5(b)	CGST Act
Villa, under construction	Sachi’s reading: likely the same as an apartment; confirm with the builder	Notification 11/2017, Explanation (xiv)
Plot (land)	Sale of land is not a supply	CGST Act, Schedule III, para 5

For a villa, the GST notification uses the RERA meaning of “apartment”, which includes a dwelling unit on a plot of land. Sachi’s reading: an under-construction villa in a project is likely taxed like an apartment. Confirm the rate in the builder’s cost sheet. The FAQ says its answers “do not have force of law”, and the notification wins in a conflict. The 56th GST Council meeting in September 2025 changed service rates from 22 September 2025. Under heading 9954, its press release changes three works contract entries only: two for work given to the Government, and one for offshore oil and gas works. It lists no change for residential apartments, so the 1% and 5% rates still hold. Notification No. 15/2025-Central Tax (Rate) amends Notification 11/2017 to carry out these changes. Unverified: Sachi could not load the text of Notification 15/2025 itself, so this check rests on the Council press release.

Unverified: Sachi did not find a primary source on the GST for development or amenity charges billed with a plot. Ask the promoter to show each GST line and its legal basis in writing.

1.6.6 How should you compare the total cost and responsibility?

Compare the cost to a finished, usable home, not the headline price. An apartment or villa price includes construction, but you also pay GST if it is under construction, stamp duty, registration, deposits and maintenance. A plot price buys land and the layout works. The RERA Act lists these works. Section 2(zb) covers internal development works such as roads, footpaths, water supply, sewers, drains, parks and street lighting. Section 2(w) covers external development works such as roads, water supply, sewerage, drainage and electricity supply outside the project. On a plot, you must add the cost of design, your own building plan approval, construction, utility connections and supervision. You also carry the construction risk yourself. Section 14(3) of RERA gives allottees five years from possession to report structural defects or workmanship defects that relate to the promoter’s development. The promoter must fix them within thirty days, at no charge. For a plot, this covers the layout works, not the house that you build.

Cost or duty	Apartment	Villa	Plotted development
Construction of the home	In the price	In the price	You pay later
GST on the sale	Yes, if under construction	Sachi’s reading: yes, if under construction	Sale of land is outside GST
Approvals for the home	Promoter files them with K-RERA (section 4(2)(c))	Promoter files them with K-RERA (section 4(2)(c))	Sachi’s reading: your duty, for your own house
Five-year defect duty under section 14(3)	Covers the building	Covers the house and project works	Covers the layout works only
Recurring charges	Association maintenance	Association maintenance	Association or local body charges for the layout

Source: RERA Act 2016, sections 2(w), 2(zb) and 14(3); CGST Act; GST Council FAQ. Checked 9 October 2026.

Ask each promoter for a written cost sheet with every line item. For a plot, get a written estimate from an architect or a contractor for the house you plan. Treat that estimate as a range, not a fixed price.