A joint report by EY and NAREDCO predicts the Indian real estate market is projected to grow to a whopping 1 trillion US Dollars by 2030 from 200 billion US Dollars in 2021. Land is an important asset owing to economic growth, improving lifestyles, rapid urbanisation, and increasing demand for property to add to your investment portfolio. This trend is further bolstered by the various government initiatives, rising population, and infrastructural growth. By expanding your portfolio and diversifying assets you can reap several benefits such as versatile use of land, higher ROI with lower risk, and a favourable future value. So is investing in land the smart investment choice we think it is?
As the years pass, owning land has proven to be quite a tangible asset in comparison to other investment options like gold and stocks. Purchasing land is a great strategy for wealth accumulation for generations to come. Additionally, government policies have greatly influenced land investment, ensuring more transparency and empowering investors. The government put in place the Real Estate (Regulation and Development) Act (RERA) to promote standardisation and accountability, thereby protecting buyers and making land investments more reliable. Moreover, tax benefits such as reduced stamp duties and capital gains exemptions act as financial incentives designed to enhance the appeal of purchasing land as an investment option. Furthermore, projects like Bharatmala which was launched almost a decade ago with the aim to improve nationwide road connectivity, and the Smart Cities Mission targeted at developing urban cities with modern infrastructure, have boosted land values significantly by increasing accessibility and demand.
The Different Types of Land Uses
Owning land offers versatility, making it quite a valuable addition to one’s investment portfolio. Depending on what the land is used for, there are a set of unique opportunities and advantages that help you reach your specific goals. The success of the investment depends on the type of land and what is it used for.
Residential Development:
one can use the land to develop it for residential purposes. These properties, once built, can be sold or converted into rental properties. Both of the options are sure to yield a steady income.
Commercial Use:
depending on the location of the land, i.e. urban and semi-urban areas, it can be converted into commercial developments like retail centers, office spaces or warehouses. This option not only provides high rental income but is also projected to increase in demand as business expansion and urbanisation continue across India, making it a future-proof plan.
Agricultural Use:
Agricultural lands is suitable for growing crops and other agricultural activities that can prove to be quite the high-income option. There are many government policies like the National Mission for Sustainable Agriculture (NMSA) and Soil Health Card (SHC) that support sustainable and organic farming which show great promise.
Industrial Land:
Logistics and manufacturing businesses require large lands parcels for their operations. With the steady rise of the e-commerce industry and the rapid expansion of supply chains, industrial lands holds potential, especially near highways, ports, and major cities.
Recreational Use:
owners of large areas, especially near tourist hotspots, can use the lands for resorts, amusement parks, or other recreational developments and generate high income.
The Future of Land Investment
The time to make an investment move is now as lands is a finite resource that is already facing scarcity with increasing population density being one of the key factors. With growing demand and limited supply, lands prices are catapulting to newer heights. This also means, investing in lands today or a property by a premium real estate developer in North Goa should increase the asset’s long-term value.
The market of land investment in India looks promising, backed by government policies and an evolving market landscape. As cities continue to expand with a strong focus on sustainability, demand for well-located lands is expected to rise. Lands investment is being viewed as a strategic approach to long-term wealth creation. Whether for residential, agricultural, recreational, commercial, or industrial use, lands is bound to remain a future-proof asset that aligns with individual financial goals. It certainly appears to be an appealing addition to your diverse investment portfolio.