A PIECE OF LAND IN
THE RURAL AREA
By Eva Razvan, Cojocariu Eduard, Mara Rusu-Atena, Ariana Belean
ROI ON AGRICULTURAL
LAND
 Returns on investment on land purchases are higher in emerging and developing
areas, where there is a possibility of upcoming infrastructure projects. Rates of land
along the Jewar airport site have, for example, started to move upwards after the UP
government announced that it would build the national capital region’s second
airport in Noida.
 Pradeep Mishra, a Delhi-based real estate consultant, points out that it is
good, if the land is located in an area, where some government scheme is to be
launched, or if it is included in the master plan of the region. Chances are that such
a piece of land will fetch a higher value in future, he says.
A DVA N TAG E S O F I N V E S T I N G
I N AG R I C U LT U R A L L A N D
 An agricultural land plot can guarantee long-term returns, if it is in an
area where the government has planned some infrastructure project in the
near future.
 Moreover, the compensation, in the case of acquisition by the
government, is higher for rural land than that for an urban land. A
number of state governments are also planning a land pooling policy, for
areas where city is expanding. If you become an owner under the land
pooling policy, you will get a guaranteed regular returns from the pool.
D I S A D V A N TA G E S O F B U Y I N G
AGRICULTURAL LAND
 Not everyone can buy: As per the law, you need to be a farmer to own agricultural
land in India. While most states have such a ruling, some have eased this prerequisite. You
may also get receive such a land, through a gift or through inheritance.
 Conversion is not easy: You cannot convert a fertile piece of agricultural land into a
residential one. The land should be a dry land, for conversion.
 Land Ceiling Act: A number of states restrict the ownership of land. Therefore,
check how much can be bought in that state.
 Not everyone can buy: NRIs, for instance, cannot buy agricultural land in India.
RISKS IN BUYING PLOTS , LAND
PA R C E L S
 Even though the benefits of buying a land parcel or plot are
innumerable, especially if it is an agricultural land, there are certain
risks involved in such purchases, as well. This is particularly true in
case the buyer is not extremely careful about property’s documents.
While states have made it easier for investors to find all land-related
information online, a great deal of diligence has to be employed, to
ensure that all the documents are in place and there is no forgery.
AGRO REALTY INVESTMENTS – A
S I T UA T I O N A F T E R C O V I D 1 9
 There are several reasons and opportunities for the agro realty sector to boom in
India. Since most companies use extensive chemicals on food products, especially
perishable ones, people are trying to shift to consuming organic products that have less
artificial chemicals. This is because such chemicals often cause health and environmental
impacts. Such concerns have risen rapidly amidst the pandemic and people have shifted to
consuming healthier food items. Thus, this holds a lot of opportunity for organic
farming, thereby increasing the investments in agricultural land. It is also expected that
the market share of organic food and beverages would reach USD 327,600 in 2022 and
individuals even with moderate personal disposable income would shift to consuming
organic items and lead a more sustainable life.
SFARSIT