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Apartment vs Individual House: Which One is Better?



While some people go for apartments, others fancy an independent house. More often than not, sky-high rates of properties in metros force most home buyers to opt for apartments. Apartments are a little cheaper than independent houses or a villa in metro cities like Mumbai, Bangalore and Chennai. Hyderabad doesn’t have a different story either; Flats in Hyderabad are much reasonably priced than individual houses.

It’s no hidden fact that the latter comes at a high price. There are some noticeable differences between the two. But, which option is better An Apartment or individual house?

Well, there’s no possible right or wrong answer to this question. It’s a very complex question and it depends on several different factors.

Here are some noticeable differences that will help you to decide on which property between an Apartment and individual house is better for you-

Tax implications

To buy an apartment, when you take a home loan, you are authorized to avail some tax advantages. If the property is meant for personal use, an individual is entitled to get a tax deduction per financial year of up to Rs 2 lakh on the interest amount. Moreover, a discount of Rs 1 lakh is applicable for the highest price spent. However, one must learn that if you intend to hire out the property you have purchased, the rent collected would be counted as an income and would thus be taxable.

The scope of earning

Capital appreciation might not be as great as a plot or even an apartment when it comes to individual houses. This is mainly because of high original capital required and the restrained demand as contrasted to apartments. Rents for such units in a month are typically way more than apartments. However, it is challenging to find renters due to the high price tag associated with it. For instance, Flats in Gachibowli are easily rented out than independent houses in that area.


Plots are favoured by those who have rights of construction of certain size. You must have a solid commercial back up as you end up paying for not only the land, but also the architects, construction, labour cost, and designers. Constructing a house is far more problematical and time consuming task; however, getting a possession over a well- built apartment is much easier. The loans granted by banks have various complex terms and conditions too.

Amenities come at a cost

An apartment comes with combined facilities, such as water systems, safety, power back-up, fire safety mechanism in place and enough parking spaces. However, an independent house requires additional effort for fixing up these services. This would also incorporate an additional cost. It is estimated that one requires to spend 2-3 percent of the entire capital value on these facilities on an independent home. This would involve fixing up your own water mechanism and a small power back-up in the form of a generator or an inverter set. Security might still be an issue of concern.

On the other hand, the developer presents all of these in an apartment society, in advance for the first 2 to 3 years. That’s the main reason why Flats in Hyderabad and other metros are seen as an ideal option for investment purpose.

It is important to remember that both be it apartment or individual homes, have their own set of pros and cons but in today’s contemporary world an apartment is lot more hassle-free property and easy maintenance than a house.