The Benefits of Buying Agricultural Land

Category: Real Estate

Many urban investors are investing in agricultural land due to the change in urban reality and the promise of long-term returns. We are exploring the benefits of buying agricultural land in Konkan for those interested. With rising incomes, Indian investors are looking for new ways to earn a return on their investments. One method is to be overly reliant on agricultural land. While some investors keep such land as an asset. There is a segment of investors who support the growing market of fruits and vegetables to supplement their income. Several experts have agreed that farm investment is a safe option for parking funds because the return on investment is usually higher than other investments and also lends safety to money, especially after pandemic COVID-19. Now, urban investors are looking at the potential returns on agricultural land in areas near major cities and state capitals. In comparison to urban land, investors can expect healthy returns on resale value, while the land is cheap. Due to shortages and the high price of land in cities, there is an increase in the buyer of such land parcels for resale or cultivation with urban investors. Potential ROI on agricultural land If there is a chance of future infrastructure projects in emerging and developing countries, If a government scheme is to be launched and the land is located in a specific area, the returns are higher, such as a special highway or economic zone. He adds that it is good or in the master plan of the region it is included in the future there are chances that such a piece of land will fetch a higher value. Advantages of Investing in Farmland An agricultural land plot can yield long-term returns if it is located in an area where the government has planned some infrastructure projects shortly. In the case of government acquisition, the compensation for rural land is greater than that for urban land. State governments are also planning a land pooling policy for areas where the city is expanding. If you become an owner under the land pooling policy, you will receive guaranteed regular returns from the pool. Opportunities of Purchasing Farmland To own agricultural land in India, you must be a farmer, according to the law. Some states have extended this requirement, while the majority of states have such a rule and you may also receive such a land. Conversion may be difficult: you cannot convert a fertile piece of agricultural land into a residential one. The land should be dry for conversion. Terminology and knowledge of local land laws are required: if the buyer is unfamiliar with the land laws and local terminologies used in the transaction, purchasing agricultural land may be extremely difficult. Because the land is a state subject, it will be disadvantageous due to the legalities involved in the process, laws differ in each state, and lack of thorough knowledge.