Every investor worth their salt is always on the lookout for new and potent opportunities which can enable them to diversify their portfolio while earning robust returns. As we enter into 2024, there is an investment ecosystem which is gaining in appeal – and that is agricultural land. While you may already have investments in commercial and residential real estate, the agriculture sector is turning into a golden opportunity, owing to a number of reasons. And if you do not yet own agricultural land, then this is the right time to step in and start investing.
Why Should You Invest?
Investing in agricultural land in India presents a compelling opportunity for several reasons, with significant benefits in terms of security, liquidity, transparency, strategic investment, high ROI (Return on Investment), and location advantages. Firstly, agricultural land offers a high degree of security as an asset class. Unlike stocks or bonds, it is a tangible asset that is not subject to the same market volatilities, providing a stable investment over the long term. This stability is particularly valuable in India, where agriculture is the backbone of the economy, ensuring continual relevance and demand for agricultural land.
Further, the growing demand for food and expansion of urban areas means there is always a market for selling such lands, often at a premium. This aspect is enhanced by the increasing transparency in land deals in India, with digital land records and clearer regulations, making it easier and safer for investors to buy and sell agricultural land.
The strategic investment in agricultural land can lead to high ROI, especially when the land is located in areas with good water resources, favourable climatic conditions, and accessibility to markets. The ROI is further amplified by the potential for converting agricultural land for commercial or residential development in the future, especially in areas close to expanding urban centres such as the Delhi-Mumbai Expressway.
Accordingly, the location is a critical factor in agricultural land investment in India and the most effective ROI area in agricultural land investment is typically found in regions undergoing rapid urbanization or those that are on the cusp of significant industrial or infrastructural development.
Where Should You Invest?
Given that the location is integral to optimal agricultural land investment, where should you ideally park your funds? An excellent and fast-developing possibility, which embodies all the qualities listed above, is Naugaon or Alwar, on the Delhi-Mumbai expressway.
This region falls squarely on the pathway connecting the two Indian mega cities, and is therefore well-linked to Delhi, Haryana, Rajasthan, Gujarat, Madhya Pradesh and Maharashtra. Given its superlative location, and proximity to the fast developing Delhi NCR region, the agricultural land in Alwar is expected to witness accelerated growth in value over the next few years, making it the best place for you to start your agricultural land investments.
Advantages at Play
In addition to the joy and pride of owning prime agricultural land, there are several other reasons for why you should invest in such properties.
Firstly, agricultural land tends to appreciate faster than commercial and residential properties, with a report stating that such investments offer returns of around 10-12% per year. Therefore, your investment will become inflation-proof, as you avail returns which are around twice the current rate of inflation.
Secondly, such investments can be your gateway to diverse prospects, from organic farming and agro business to horticulture. Your agricultural land will reap rich rewards through the organic route as seasonal vegetables, nurtured with natural compost and devoid of harmful chemicals, offer a health-conscious choice for you, while also driving potential sales, if you are so inclined.
When you invest with renowned land investment and asset management groups, you have the benefit of expert management at every step of the way, ensuring that you can rest easy as seasoned horticulturists and farmers take charge of your entire crop cycle. And to further augment the win-win scenario, your investment will continue to gain in value, making it an exemplary addition to the portfolio.
