Decoding the Growth in India’s Agro-Realty Sector
Aditya Kushwaha is CEO and Director, Axis Ecorp in Times of India digital.
Land investment has been a popular choice across generations. Come bonds or cryptocurrencies, land as an investment has never lost its shine. Its extraordinary appreciation and tax benefits make land investment a lucrative option for wealth creators. However, the investment landscape is an ever-evolving space. With progress in economic activities, various new-age investment options are replacing traditional ways. Agro-realty is one among those.
Agro-realty: Game Changer in real estate
To put it simply, agro-realty is a kind of real estate investment where agricultural land is developed and distributed among investors. The developer acquires a large tract of land, divides it into sub-plots, and sells them to investors. It’s a fascinating new way of earning high returns with the least effort. This new style of investment is innovative and lucrative. Experts believe that agro-realty is going to be a game-changer in the real estate business.
One of the primary advantages of investing in agro-realty is that the cost of development gets divided among the investors, hence lowering the overall cost of acquiring a furnished plot. With its growing popularity, developers are now equipping the plots with gated boundaries, continuous water supply, concrete roads, and many other facilities. In agro-realty, the agricultural land is used for various purposes. While a few prefer to invest in it for farming, others choose to build a weekend home or a farmhouse.
Those who choose to farm are leveraging the benefits of agro-realty by growing cash crops to supplement their income. Many agri-realty developers are motivating landowners to form societies to lower the marketing and transportation costs of fruits and vegetables.
For those who use the plots as weekend homes, the agro-realty offers multi-fold benefits. Usually, the process of buying and developing land is not only chaotic, but it’s also money and time-consuming. With agro-realty, however, the sum of acquiring and maintaining the land gets divided among a community. The expense of sourcing water, constructing roads, getting electricity supply, and land clearance, also gets split. In addition, when the land property isn’t in use, it can be rented out, acting as a side income.
Value for money
Farm investments are value for money. They are safe investment options and customarily give higher returns. Moreover, agro-realty guarantees capital security as physical land is associated with the investment. Also, the agricultural land doesn’t depreciate and thus a smart way to get returns with nominal risks and efforts.
Agro-realty in the Indian context
Agriculture is one of the strongest sectors in India. Our country is agriculturally rich and diverse. 58 percent of the population primarily depends upon farming for their livelihoods. But for years, agricultural land has been used essentially for farming. Its industrial and residential purposes remained unpopular for a long time. With agro-realty, however, this huge potential can be tapped.
The concept is already popular in countries like the UK and the US and it’s fairly new in India. Experts, however, believe that India has the potential to notably revamping the Indian agricultural landscape with agro-realty.
Agro-realty creates investment opportunities without causing any environmental damage. As India strives to fulfil its strong commitment towards environment and climate change at a global stage, this can serve as an added advantage for the country. The development under agro-realty ensures that nature was taken care of while fulfilling human needs.
Agro-realty: a thriving investment trend in India
Agro-realty is fast-growing trend in India that has lent a new definition to real estate investments. People are accepting it with open arms for its ease and high returns. Also, with the growing concern around health and safety, owing to the COVID-19 pandemic, many people now prefer organic food over others. This offers entrepreneurial opportunities for agro-realty investors. Agro-realty has also made luxury affordable. Those who were looking for a home away from home and wanted to move to the countryside have been finally been able to achieve it at an affordable price.
Agro-realty is flourishing across India. Goa too, in recent times, has seen various proposals of agro-realty projects. The land here is rich and condusive for cashew and teak. There are also a few wineries mushrooming in this belt. Banglore is another hotspot, where high-end timber production is being explored.
In India, purchasing agricultural land isn’t easy. Many states make the agricultural background a basic requirement for owning farmland. However, agro-realty is making this far-fetched dream a reality and making the land acquisition process easy for investors.
Views expressed above are the author’s own.