Purchasing Agricultural Land: The Benefits, Drawbacks, And Costs

Due to the country’s increased purchasing power, entrepreneurs in India are increasingly searching for innovative ways to produce returns on their investments. One such tactic is the acquisition of farmland. While some investors continue to view such land as a commodity, another group boosts their profits by taking advantage of the growing organic food industry. Farmland investments are considered safe investments by many experts since they often offer higher returns than other assets & give investors financial security.

Are you looking for 3 bhk flat in kalyan west?


In India, many urban businesspeople are interested in the potential returns from the various agricultural property types found in and around large cities. The market witnessed a surge in demand for various kinds of agricultural land as a result of the rising cost of land in cities and its dearth. It can be purchase by urban investors to develop it themselves or to sell for a profit. Agricultural land is more inexpensive than urban land. The investors anticipate some very good returns in terms of resale value.


Advantages of Investments in Farmland

Let’s say a piece of agricultural land is situated near an area that the federal and state governments have designated as having infrastructure projects that will be completed soon. Then, it unquestionably provides some long-term profits. As with any land-related developments, your asset wouldn’t lose value over time. Regarding apartments, flats, etc., this isn’t totally true. With time, the building’s quality and general structure deteriorate, necessitating expensive maintenance costs for the owner. This farmland investment technique has helped many Indians in tier 2 & tier 3 towns become wealthy since it not only saves you money on maintenance costs but also offers you the freedom to use that specific plot of land for a variety of uses in the future.


Agricultural Land’s Commercial Advantages

Even while buying a piece of real estate or a plot of land has many benefits, some people wonder if investing in agricultural land in India is a wise idea, especially because such investments come with some risks. This is particularly accurate if the purchaser does not carefully review the property’s papers. States have made it easier for investors to find all land-related information online, but there is still a lot of care needed to make sure all of the paperwork is in place and that there aren’t any forgeries.

The following are some benefits of investing in the agricultural real estate market:

  • The total value of the property is less because the owners shared the cost of establishing the land. As a result, a buyer of these plots must pay less.
  • The returns on capital are higher than those of stock and share investments as a result of the expansion of organic farming & changes in consumer preferences and inclinations. With this agricultural land investment, investors put up less work and incur less costs overall than with any other investment, but rewards are higher.
  • Contrary to apartments or houses, buying agricultural property has two key benefits: Firstly, not having to pay for its upkeep could result in financial savings, & secondly, agricultural fields do not require
  • Contrary to flats or houses, buying agricultural land has two key benefits: You may avoid the maintenance fees, and agricultural land doesn’t depreciate. Investors shouldn’t worry that the plot’s value would decrease with time.


How Can Your Land Become a Profitable Investment?

The following tactics will help you turn your land investment into a profitable venture:

  • Depending on your location, you might be allow to rent it out for neighbourhood gardening.
  • Create a blog to chronicle your most current agricultural adventures.
  • Make a beehive farm a popular tourist destination.
  • If the soil is fertile, grow unique flowers to sell at the local market.
  • Plant seeds are sold online.
  • Offer to assist with pet sitting or kid care in exchange for the money you paid for a 1-acre agricultural property parcel.
  • Online retailers can grow and sell herbs.
  • Giving farm-related tours or lessons might make buying farmland as an investment rewarding.
  • Make use of the land to produce solar power.


Regulations by the government for converting agricultural land to non-agricultural land

Without first undergoing a legal “change of land use,” agricultural property in India cannot be develop for residential or commercial uses. You can ask for a change in land use by filling out an application form and sending it to the Commissioner of the Land Revenue Department. Nevertheless, you must list every explanation for the switch.

The conversion application form must be accompanied by the following documents:

  • The partition deed, gift deed, or first sale deed
  • The Mutation Letter
  • Maps from a formal survey
  • Recently filed tax returns
  • Identification Evidence


If agricultural land is change from being use for farming, a fee must be paid. The costs are influence by the type of property and its location. It is required to supply information on the size of the land parcel, any outstanding loans, the crops & soil types on the property, as well as the names and contact information for the previous and present owners. These documents are available for purchase in digitized form from the Revenue Office as well as the Tahsildar office. Duplicate copies of the payment receipt and unpaid dues must be paid right away.


Check These Documents before Investing in Farm Land

A list of the documents you’ll need to buy and invest in agricultural property is provided below. How this varies may depend on the state:

  • 8A excerpt
  • Land revenue tax receipts
  • City map (gaon naksha)
  • Results of soil tests
  • original title deed
  • certification of obligation
  • If applicable, the registration or conveyance deed.


Investment Costs for Agricultural Land in Major Cities

The land conversion certificate requires a one-time obligatory payment. This cost varies from one state, one region, and one locality to another. For instance, in Andhra Pradesh, the conversion price must equal 3% of the land value. To convert public land to residential use in Haryana, there is a cost of Rs 210 per square metre. A residential plot can be built on an agricultural plot in Rajasthan for anywhere between Rs. 60 and Rs. 200 per square yard. Between 400 and 800 rupees per square yard are needed to convert land for commercial usage.

Additional Floor Area Ratio [FAR] fees in Delhi have been established from Rs 3,039 to Rs 7,597 per square metre in a variety of industrial sectors, and conversion fees for allowing residential use range from Rs 14,328 to Rs 24,777 per square metre. Bihar demands a conversion fee equal to 10% of the property’s value. Please keep in mind that the payment receipt is proof that your application was receive, so keep it securely. The applicant may have to wait a bit to get the certificate, though. For instance, the Bombay Land Revenue Code, 1966 establishes a 90-day window for the issuance of the conversion order.


Agricultural Land for Construction

For investors considering buying an agricultural estate in rural areas close to the city, the fact that numerous state governments are currently opening up farmlands for housing growth and industrial reasons may make this possibility quite beneficial. The Gujarat State Government recently announced that real estate developers will be permit to purchase agricultural property for affordable housing under the Gujarat Tenancy Act. The state government of Karnataka amended the land reforms act similarly, liberalizing farmland ownership and enhancing non-agriculturalists’ access to agricultural land ownership. It’s possible that this is just the beginning and that other states will soon release farmland for housing development, increasing supplies.

When buying farmland, always make it a priority to avoid these mistakes.

  • It is crucial to take into account the importance of land titles. Make sure the title is clear before investing in any farms. This has two benefits: first, it helps to prevent legal problems, and second, it expedites the acquisition of land.
  • Buyers should be aware of the farming rules, particularly if they are from another state. Farmlands are govern by the state; therefore rules can differ from one state to the next. Reviewing the existing regulations is essential before purchasing agricultural land.
  • Buyers must also make sure to personally visit the property and do their homework on it. This is important for agricultural land since the buyer needs to be aware of the condition of the soil and other pertinent factors.


The Drawbacks of Purchasing Agricultural Land

The downsides of buying agricultural land are numerous. The principal negatives are:

  • According to the current legal system, just nobody can buy agricultural land; rather, you must be a farmer to own farmland anyplace in India. Despite the fact that many Indian states still adhere to this rule, some have done away with it. You may also legally inherit or receive a gift of agricultural property.
  • Since you cannot convert a productive agricultural parcel of land into residential property, conversion is difficult. It must be dry land if you’re thinking about transferring a piece of land from agricultural to household use.
  • According to the Act of Land Ceiling, land ownership is restrict in some Indian states. The maximum amount of land that can be purchase in that state must therefore be confirm.
  • According to Indian legislation, it is unfortunate to learn that NRIs are not allow to purchase any agricultural land in India. If you’re wondering how NRIs invest in agricultural land in India, read on.
  • It is crucial to be aware of local laws. Purchasing agricultural property can be quite difficult if one is not familiar with the regulations that apply to local agricultural land purchases as well as the jargon that is usually use in such transactions. Due to the importance of each state’s constitution, this varies amongst Indian states.
  • For instance, a thorough awareness of the local measurements is necessary to comprehend the land lots you are purchasing. By knowing how these particular units are translate into a number of widely use units of measurement, you may obtain a decent idea of the final price per square foot you will have to spend.
  • The “gaj,” a locally prevalent property measurement unit in a certain locality, must be convert into square feet or square metres; hence the buyer of the land must be mathematically proficient. A user would then be able to understand the price per square foot of that agricultural region.


Agricultural Real Estate Trends

In this sector, investors might buy dry, redevelop rural acreage or land that has already been sold. These investors buy land in rural areas when it is still less expensive than city lots. They are therefore able to buy more actual agricultural property. A few people will also buy a small piece of residential property in a village and use that address to buy farmland in the same neighbourhood. Agricultural land prices are expect to increase, particularly in the area of urban centres, as a result of the increase demand for affordable

Housing, which can only be construct outside of large cities? In these areas, land is required for both governmental & commercial development.


Following COVID 19, the Situation of Agro Real Estate Investments

The Indian agriculture real estate sector has many drivers and opportunities for expansion. Since most businesses use a lot of chemicals on food goods, especially perishable ones, people are attempting to transition to eating organic products with fewer artificial chemicals. This is to ensure that they don’t harm the environment or people’s health. These concerns have fast increased as a result of the pandemic, and people are now turning to healthier diets.

Many urban investors are increasingly making investments in agricultural land as a result of the decline in urban real estate and the potential for higher long-term earnings. As a result, we examined the benefits and drawbacks for those wishing to buy agricultural land as well as how to invest in agricultural land. Indian investors are looking for cutting-edge ideas to boost their investment returns. One such tactic is the acquisition of farmland. While purchasing agricultural land may be simple for some investors, many real estate investors also require professional assistance.




Top 3 2 , 3 & 4 bhk Flats For Rent In Mumbai

Source From


You’re looking for Buy Homes in Kharghar we have the Best Properties In Navi Mumbai Like Ready to Movehttps://navimumbaihouses.com/property/search/buy/kharghar/

If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter

Disclaimer: The views of this expressed above are for informational purposes only based on the industry reports & related news stories. Navimumbaihouses.com does not guarantee the accuracy of this article, completeness, or reliability of the information & shall not be held responsible for any action taken based on the published information.
Back to top
Also Read

Related Posts

Buy Properties in Chunabhatti