Due to higher Return on Investments (ROI) buying agricultural land has become developers' and Investors' first choice, today. Many have stated organic farming because organic products are gaining popularity among people, steadily increasing their demands. Organic vegetables, fruits and organic grains can also additional income to farm owners.
Many opting for such farming investment feel it is a safer option to invest in the real estate sector. Which is also popular as the agro-realty. The market for such investments is growing, particularly after the COVID-19 pandemic.
While the land in rural areas is relatively less expensive as compared to Urban properties. Investors invest in such areas with the expectation of good ROI with higher property resale value.
Agricultural lands are in high demand, following the scarcity and high price of urban properties. The developers' latest trend is to either resell the property and make profits or perform cultivation.
"Numerous investors are heavily investing in the agriculture land in the tire-1 cities and tire-2 cities in Bangalore's neighbourhood. They feel that it is the best long term alternative investments available in the current market conditions. It has become well sought after now, due to the decreasing urban realty markets." Says, A Member of MCHI.
For instance: - a plot of 1200 sq ft in Lucknow's city area costs around INR 8 to 18 lakhs. Whereas agricultural land can be purchased for INR 1-8 Lakhs per acre which depends on the region, the location, and the city's vicinity. Which is common across the cities of the country.
Returns On Investment (ROI) on agricultural land are increasing with time and many areas with possibilities of upcoming infrastructure projects. For Instance, The Jewar Airport site are rising up after the announcement of the Second airport in Noida.
"A Delhi based Real Estate Consultant, explains that if the land is located in the area where some government projects are about to be launched or if it is included in the layout planning. Possibilities of such properties will give you good ROI in the future." He says.
Investing in agricultural land can assure long-term returns, especially when the government announces infrastructural projects in the future.
The compensation for land acquisition for rural agricultural land is higher compared to urban land. Many state governments are also planning on introducing land-pooling policies for areas where cities are widening. Landowners, under the land-pooling policy, are guaranteed regular returns from the pool.
The appreciation is true in case of all land developments. The land value is very unlikely to depreciate with time - the same does not apply to apartments, flats, etc... With passing time, these structures deteriorate and also require heft money for their maintenance.
Instead, investing in agricultural land can save you from spending all the money but also the land can also be used for various purposes adhering to all the agricultural land norms.
While many advantages accompany its disadvantages, here are a few disadvantages you must be aware of before you decide to buy agricultural land:
Not everyone can buy agricultural land, you need to be a farmer to own an agricultural land.
Conversion is not easy: Converting fertile and cultivable land is extremely difficult. the land must be proved dry and unfit for cultivation.
Land Ceiling Act: Many states restrict the ownership numbers. It is important to verify before purchasing any agricultural land.
Not Everyone can buy: NRIs cannot buy land in India.
Understanding local laws, terminology is important: Terminologies such as Measurement, the total area in sqft, acer, price of land, etc...
Here are some of the documents that are essential for buying agricultural land in India, Viz:
8 A Extract
Village - Gaon Naksha
Tax paid receipt
Soil testing report
Original Title deed
Conveyance deed (optional) /Registration
Buying Agricultural Land in Karnataka
Indians and NRIs can purchase non-farming land in Karnataka. However, there are certain restrictions on purchasing farming/agricultural land.
Before 2015, only individuals with an agricultural background could purchase agricultural land in Karnataka.
People with non-agricultural backgrounds refer to individuals who don't have any agricultural inheritance, own agricultural land or who have not earned more than 2 lakhs for a year in agricultural land.
In 2020 the Karnataka Government abolished the 2-decades old law. Today, there are no restrictions on who can purchase and sell non-agricultural land in Karnataka.
Non-agriculture-based institutes, namely - corporations, or academic institutions in India, etc...
Legally, anyone with a maximum non-agricultural income of 25 lakhs per year can own agricultural land, irrespective of their background. In June 2015, the baseline income was raised from 2 Lakh to 25 Lakh.
The district commissioner has the authorisation to grant agricultural property ownership to non-agriculturalists.
Below mentioned documents are essential for either buying or selling agricultural land in Karnataka:
Document of Right to sell the property and seller's identification
Sales contract - Including selling price, Timing, and Advance Payment made
Stamp Duty paid receipt
Registries of Property
Deed of Title in Original Form
Two witnesses are compulsory for property registration
Deed to transfer the Title of the property, from seller to buyer during real estate transactions
Patta book (EC) Conveyance document
NOC from Tehsildar
Documents for record of rights
Extract from the Mutation Register
Records of Survey
HISS Tippani and Hissa Survey Sketch
Map of the village
Identification card - Aadhar Card, Pan card, or Election Identity card.
Death certificate (relevant)
Other Documents that are relating to the property ownership proof
The stringent law in property buying came into practice, as a remedy for the land scams that took place in the state and in the rural regions across the country.
Many buy agricultural land and fake documents by stating that the lands were unfit for cultivation, make layouts and sell them at higher prices. The government to avoid such misshapes land scams and also to eliminate land conversions introduced regulations in land buying processes.
Until 2020, Non-agriculturists or people without agricultural backgrounds were unable to purchase agricultural land in Karnataka. In 2020, Karnataka abolished the old law prohibiting non-agriculturalists from purchasing or selling agricultural land.
In the recent day, there are no such restrictions on who can own agricultural land in Karnataka, including Non-agricultural institutes, corporations etc.,
People with a non-agricultural income of 25 Lakhs per year can own farmlands, regardless of their non-agricultural family background. In June 2015, the income threshold was risen from 2 lakh to 25 lakh.
A. Buying Farmland is a good investment. Especially land that is closer to approved government projects, with rising property value, which can fetch good ROI.
A. According to Section 54B: The LTCG arises from the transferring the agricultural land used for farming purposes. If the assessee has, within a period of two years after that date, purchased any alternative land for agricultural purposes, then a correlative deduction will be available to the extent of LTCG invested as prescribed.
A. When you don't pay appropriate stamp duty on land, the collector can impose a certain penalty, which can be the difference of the amount of the insufficient stamp duty. The penalty can vary anywhere from INR 500 to 10 times the difference of the stamp duty.
A. Stamp Duty is the tax which is paid by the property buyers and the Stamp Papers are the stamp paper is the paper with furnishes the details of the property seller and the buyers. Stamp papers come in different denominations.
Did we help ?
Get the Latest News and Updates Of Indian Real Estate
Well, we are aware that real estate has never exactly been one of those binge-worthy blog categories. It has neither been the kind of topic you could not get enough of, nor is it half as juicy as celebrity gossip.
However, in India, real estate blogs are starting to get clicks and likes, and it has become one of the trending topics. People worldwide are beginning to realize how real estate as an industry affects the economy and how important it is to understand housing trends to enhance their lifestyle.!
The relevance of informative Indian blogs on real estate and finance are at an all-time high now. The youngsters are bidding big on investment options, and brackets such as realty have proved to be highly dependable compared to others.
The Millennials are flooding in to invest in apartments, plots, and villas, and the earliest members of the Gen-Zs' entering the workforce and looking forward to having their own homes. This has only fuelled the growth of digital real estate blogs to keep up with the tech-savvy generations.
Also, the real estate sector has been proving time and again, how reliable an investment choice it is. So, learning about the sector is the smart way to climb up the ranks, and where else can you learn so much except from real estate Blogs! Real estate is the second-largest contributor to the country's GDP; hence there is no doubt that it affects every one of us, whether we see a future in the Real Estate Industry or not. After all, we all live in our homes, and housing is a significant part of the industry.
We know exactly what you need to know and what you like. We know you want to feel engaged and entertained, and at the same time, hot housing news should be fed to you! We have turned the tables, grab a spoon, and start digging!
And Voilà! We present to you the most Interesting and Informative blogs!
As our name implies, we are not limited to realty alone, granted we do Specialize in it. We are all about Homes, and we are in love with Tech and Innovation! Naturally, our blogs cover a myriad of topics related to real estate and housing from Luxury, Lifestyle, Home Decor, Vastu, Real Estate News, Reviews, Tech & much more!
We make every one of our real estate blogs as interesting as it can get and attach with absolutely unique and accurate images, to provide you a better understanding. Not only do we cover a wide range of topics, but we also cover them at the right time. We update you on our socials such as Facebook, Instagram, Linkedin, Pinterest, and Twitter on every trending topic, so you are never miss anything and worry about being left behind!
However, we never go out of hand with our Indian real estate blogs that our beloved Readers have come to love over the years.
Everything in India is a state of constant flux; maybe that's why we Indians became one of the most adaptable and cosmopolitan people in the world!
If the nation's elements are shifting its focus, how can real estate be any different? Indian Real Estate Sector is perhaps one of the most dynamic ones in the entire world. Since the Real Estate in India is yet to be organized entirely, the variations in one segment affect another in ways difficult to comprehend.
The complexity and nuances can be understood only by reading about what is going on in the sector. Like we mentioned above, it affects every one of us. Hence it is essential to keep up to date.
With its ever-changing shifts and tides, it's virtually impossible to keep track of the sector's latest trends and sink our anchor deep. That's where we come in! We are just one google search away!
We also try to solve every home-related query through our Indian real estate blogs. And that's not all. We provide you insights on technologies that make the modern taste and rate of development possible, detailed analysis on real estate projects, insights on loans and taxes, advice on the home buying process, and articles on health and fitness. We provide you information about the trending topics in the Indian real estate industry.
We also host video podcasts named Expert's Voices, where we discuss with the leading players in the industry about market scenarios, offers, anything and everything related to real estate.
In addition, we host Real Estate News so you can stay updated on the sporadic events that happen around the country concerning Indian Real Estate. We also make short and easy to understand real estate video blogs.
We have got so many topics to read about that even if you have years of experience or are just curious and googling to get some ideas about Indian real estate blogs, you will find the best ones here.
At Homes247.in, we strive to provide you only the best real estate blogs. Our blogs are always entertaining; even the dullest subject we touch upon, we try to make it engaging. We make sure the best of the best is are the only standard we keep ourselves at when it comes to our service or our Indian real estate blogs.
Our team is made of a dynamic group of keen hands-on expert researchers who work tirelessly along with passionate and knowledgeable content writers to bring to your fingertips the world of real estate.
On every one of our real estate blogs, we research vigorously, write creatively, carefully compile, and thoughtfully curate the best real estate blogs, especially for you, from India's best content writers and contributors.