The Risk and Benefits of Buying Agricultural Land

Category: Real Estate

Many urban investors are investing in farmland because of the change in urban realities and the promise of long-term returns. We are examining the benefits and risks for those who want to buy farmland. With increasing returns, Indian investors are looking for new ways to get a return on their investment. One method is to have plenty of farmland. Investors keep these lands as property. A section of investors directly supports the growing market for fruits and vegetables to offset their income. Many experts agree that investing in agriculture is a safe way to keep funds because the return on investment is higher than other investments and also protects investors' money, especially after the epidemic of COVID-19. Now, urban investors are looking at farmland near major cities and state capitals for potential returns. Compared to urban land, investors can expect good returns on resale value, while the land is cheaper. Due to the limited and high cost of land in cities, the rate of resale or purchase of agricultural land by urban investors for cultivation is increasing. Potential ROI on farmland If there is an opportunity for future infrastructure projects in emerging and developing countries, if a government scheme is to be launched and the land is in a specific area, the returns are higher, such as special highways or economic zones. It is better or included in the master plan of the region and such a piece of land is likely to get a higher price in the future. Benefits of investing in agricultural land Agricultural land plots can provide long-term returns in areas where the government has planned some infrastructure projects in the near future. In the case of government acquisitions, the value of rural land is higher than that of urban land. State governments are also formulating land acquisition policies for the expanding areas of the city. If you become the owner under a land pooling policy, you will receive a regular refund from the pool. By law, you must be a farmer to buy agricultural land in Konkan. Some states have relaxed this requirement, but most do not. Some have reduced this requirement and you too can get such land. Disadvantages of buying agricultural land Conversion can be difficult: You cannot convert fertile farmland into residential land. Not everyone can buy: NRIs are unable to buy agricultural land in India. Knowledge of Local Land Laws Required: Buyers may find it extremely difficult to purchase agricultural land if they do not know the local laws and local conditions used in the transaction. Since land is a state subject, due to the legality involved in the process, the laws are different in each state and it would be inconvenient not to have complete information.