Advantages and disadvantages of buying agricultural land

Category: Real Estate

Many urban investors are investing in farmland due to changes in urban realities and the promise of long-term returns. We are analysing the pros and cons of buying farmland for aspirants. With increasing purchasing, Indian investors are looking for new ways to get a return on their investment. One method is to rely heavily on agricultural land. So some investors keep such land as property. There is a segment of investors who directly support the growing market for fruits and vegetables to supplement their income. Many experts agree that investing in agriculture is a safer option for keeping one's funds because the return on investment is generally higher than other investments and also provides security to investors' money, especially after the epidemic COVID-19. Now, urban investors are looking at potential returns on farmland near major cities and state capitals. Compared to urban land, investors can expect good returns on resale value, while land is cheaper. Land scarcity and high prices in cities have led to an increase in the number of parcels purchased by urban investors for resale or cultivation. 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. He further said that whether it is good or included in the master plan of the region, such piece of land is likely to get higher value in 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 case of government acquisition, 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 are guaranteed a good return. Benefits of buying agricultural land To own agricultural land in India, you must be a farmer by law. While some states have relaxed the condition, most states have relaxed the condition. Some have reduced this requirement and you too can get such land. Conversion can be difficult: you can't turn a fertile piece of farmland into a residential space. The soil should be dry for conversion. Not everyone can buy: NRIs are unable to buy agricultural land in India. Definition and knowledge of local land laws required: Buyers may find it extremely difficult to buy agricultural land in Konkan, if they do not know the local laws and local terms 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 as there is no complete information.