Land investment in India is considered the best long-term investment. However, there are a few factors which you should know before investing in the land. Check out this article to know more about land investment in India, land investment benefits and its comparison with other types of investment.
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Land Investment In India
Land as an investment option has always been very beneficial for people. You should invest in the land if you want to invest in a growing asset.
However, it is important for you to know about the practicalities of investing in land and how it can be the best decision for investment.
Is Buying Land A Good Investment In India
You can invest in land for residential purposes or for commercial purposes. There are different beneficial points for different people.
Investment in land is a good source of income. However, it is suggested not to make this your primary source of income as it is a non-liquid asset hence, you cannot sell it easily.
Benefits Of Land Investment
- The price of land always appreciates and it is expected that the price will rise in future.
- The demand for land in the market is always higher and there is a gap between demand and supply.
- The maintenance cost of land is lower compared to other properties
- It is easier to sell the land due to its high demand in the market
Consequences Of Land Investment
- It is an illiquid asset, which cannot be sold immediately
- Does not provide any tax benefit for buying land
- Risk asset as it can be acquired easily by the government
- A loan for buying land can only be availed if you have planned to build property over it.
Types Of Land Investment In India
You can buy land for different purposes, hence, there are different types of land investment in the market. The types of land investment are the following:
- Residential land
- Commercial land
- Farmland
- Livestock-raising land
- Recreational land
The Best Places To Invest In Land In India
The following places have easy availability and affordability of land for different purposes. These ideal cities which provide the places to invest in land in India are:
- Hyderabad: Due to the increased employment opportunities and a stable government in Hyderabad, hence, there has been increasing in the demand for residential and commercial land. Affordable land is available in this city.
- Bengaluru: Due to the growing IT sector companies in Bengaluru, there is a constant demand for high-return investment areas. You can avail of land parcels in this city at a lower rate.
- Pune: It is an ideal land investment location. You can grab land in this city and sell it in future at a great deal. You can choose those locations which will have easy connectivity to the workplace.
- Chennai: It is a developed and saturated city, hence you can have many options for land investment at an affordable rate. The Chennai-Bengaluru Highway provides great connectivity to the city.
- Kolkata: It is an emerging IT and residential hub city. The good connectivity and modern facilities of this city have created a demand for land. You can invest in land at a very affordable rate.
Price Trend In Land In India
The price trend in land in India is different for different areas in different cities. Let’s check the below table of the average rate per square ft of plots/lands in different areas.
| City | Areas | Average Rate (Per sq ft) |
| Pune | Kirtane Baugh | 16600 |
| Rakshak Nagar | 6850 | |
| Wanawari | 8250 | |
| Charholi Curd | 5000 | |
| Patil Nagar | 7850 | |
| Hyderabad | Rajarajeshwari Nagar | 5000 |
| Jai Bharat Nagar | 5200 | |
| Kakatiya Hills | 5150 | |
| Huda Complex | 6450 | |
| Harithavanam Colony | 5950 | |
| Bangalore | Ashirvad Colony | 5200 |
| Parappana Agrahara | 4600 | |
| Dollars Layout | 9850 | |
| Harsha Layout | 4850 | |
| Doddakammanahalli | 4050 | |
| Chennai | Kayarambedu | 4100 |
| Poes Garden | 26250 | |
| Gurukkambakkam | 4000 | |
| Thiyagaraya Nagar | 14500 | |
| Kolapakkam | 5500 | |
| Kolkata | Kadapara | 12250 |
| Haridevpur | 3950 | |
| Khanna | 10600 | |
| Joka | 5050 | |
| Ajay Nagar | 7000 |
Investment In Agricultural Land In India
The agricultural land is considered as a good investment for those who use it as surplus income and also has high-net-worth.
However, there is a guaranteed long-term return when the government has planned any infrastructure project there in future.
Investment In Land vs Mutual Funds In India
The difference between land and mutual funds are provided in the following points:
| Parameters | Land | Mutual Funds |
| Consistency | The land value does not depreciate. Hence, if the area is soon to be developed, then the price of the land will increase constantly. | Mutual funds have shown consistent returns and better inflation-beating results. |
| Performance | Land investments are fixed deposits which provide the same returns on investments. | There is a higher return in mutual funds due to compound interest. |
| Proceedings | There can be a chance of being caught up in legal proceedings in land investment. | A mutual fund is regulated by SEBI hence there is less chance of dispute |
| Returns | Rate of return range from 7% to 11% pa | Rate of return from 14% to 19% pa |
Investment In Land vs Gold In India
The difference between land and gold are provided in the following points:
| Parameters | Land | Gold |
| Size of the investment | The investment size is huge with a growing and high price. You can pay only the down payment and pay the rest in instalments. | You can make a small gold investment as per your requirement. |
| Tenure | Ideal for long-term investment | Ideal for short-term investment as well |
| Earning potential | Regular monthly income can be generated | The earning potential fluctuates as per the market |
| Liquidity | Less liquid | More liquid compared to land investment |
FAQs
| Q1: Is it wise to invest in land in India?
Ans: If you want to build property, then it is recommended to invest in land. Moreover, you will get financial security when you invest in land. |
| Q2: Does land ever lose value?
Ans: The value of land can go down as per the market demand. However, there is no depreciation like building. |
| Q3: How many types of land investment are there?
Ans: There are 5 types of land investment like Residential land, Commercial land, Farmland, Livestock-raising land, and Recreational land. |
| Q4: Which investment is better, gold or land?
Ans: If you are searching for a long-term investment then you can invest in land. For a short-term investment, gold is preferred. |
| Q5: When should I invest in land?
Ans: When you want to invest your money on a long-term return and faster-appreciating property, you should invest in land. |
