Limited Supply and Never-Ending Demand

The first key aspect influencing land value is scarcity. The land is scarce, and it is nearly hard to develop more. The need for land is increasing. Furthermore, unlike gold, stocks, and bonds, the price of land has never fluctuated dramatically. According to a report from 2020 , around 255,471 acres (around 45%) of the land available for industrialization have not been allotted to any industrial projects. And, this is the reason there is a huge scope of development with unused land.

Have a Clear Purpose Before Buying Land

As investing in land involves a significant amount of money, you should be clear about the goal of this investment. Check the land conversion rules if you are purchasing it for commercial development. If you are purchasing land for residential construction, ensure that it has all of the essential licenses. If you want to acquire it for agricultural or recreational purposes, you'll need to look into permissions and other paperwork. Make sure to have all the legalities and compliances in check with the authorized bodies. You can't bet correctly until you know why you're buying land. So, when purchasing a plot in India, start with the end in mind.

Quick Possession but No Tax Benefits

You will have immediate possession of the land. Unlike an apartment or a home, which requires a relocation fee. As a result, there is no time lag between purchase and possession. There are no additional fees for site acquisition, and you may pick your favorite architecture. However, there is a disadvantage to purchasing land. No bank will typically provide money to acquire a block of land unless it is obtained through a government development authority such as the DDA or MHADA. In the case of a house loan, you can claim tax advantages for both interest and principal payments. There is no such provision for the interest paid on money borrowed for land investment.

Availability of Resources and Scope of Development

Evaluating the availability of most required services such as power, water supply, and health centers. Aside from that, the buyer should examine the land's yearly property-tax duty and the distance between the land and the next community. After all, you're banking on the neighborhood and anticipating the plot's worth to rise in the following years. As a result, development elements are critical. To anticipate the appreciation value of the property, always look for government and industry activities such as transportation, healthcare, and so on.

On The Ending Note

The land is an asset to own in India and especially if you need the flexibility to develop something of your own choice. Investing in land in India is a great investment instrument and we at MyProp are aiming to democratize real estate and land investments. Get in touch with us to know more.