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The pros and cons of investing in farmland plots in Hyderabad

Posted by vbvr on November 24, 2022
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Farmlands are an investment that many overlook. They are scarce commodities that steadily increase in value over time. When it comes to alternative investments, there is a lot to choose from. It can be difficult to decide which one is right for your portfolio. If you want to diversify your portfolio and invest in something that will provide stability and long-term benefits, farmland investing might be a good option. This type of investment combines the advantages of real estate, bonds, managed funds, and commodities.

Farmlands have been a traditionally safe and profitable investment choice, but their popularity has exploded in recent years. This is due to the limited availability of farmland and the rising demand for food as the world population continues to grow.

Why Should You Invest in Farmlands?

Here are some of the benefits of investing in farmlands:

  1. Farmlands offer a hedge against inflation. 
  2. They are tangible assets that you can see and touch
  3. Farmlands are a finite resource – there is only so much land available, which makes them a valuable commodity
  4. Farmland values have historically risen faster than the rate of inflation
  5. Farmlands offer the potential for high returns on investment
  6. They can provide a steady stream of income through leasing or crop production
  7. Farmlands can be passed down from generation to generation
  8. They offer the opportunity to get away from the hustle and bustle of city life and enjoy a more relaxed lifestyle
  9. Farmlands can be used for a variety of purposes, such as grazing cattle, growing crops, or producing biofuels
  10. Investing in farmlands is a way to support local economies and communities.

Additionally,

  •  Farmlands can yield good returns when equipped with proper water availability, suitable soil type, and favorable climatic conditions for cultivation. The biggest factor that determines the profitability of these lands is their location. If there are any new or upcoming government projects, infrastructure development, or highway/road plans in the area, this will likely drive up the value of your farmland.
  • You shouldn’t expect the value of your land to drop any lower. Unlike apartments or houses, which can depreciate in value as the quality of the structure, building, and maintenance declines, land doesn’t rot, corrode or break down over time. Therefore, its value is less likely to decrease.
  • Investing in fertile agricultural land is a smart move that will pay off in the form of increased value over time and can be used for passive income, as well as the option to use the land for farming. 
Things To Know Before Investing in Farmlands in Hyderabad

To own farmland in India, one must be a farmer according to the government’s regulations. Additionally, Non-Residential Indians are not eligible to buy agricultural land. However, in certain states, like Telangana, anyone can buy these farmlands – irrespective of whether them being farmers or not. However, according to the new rules of the Municipal Administration and Urban Development Department of Telangana, the minimum size for a land purchase that can be used for farmland is 2,000 square meters or 20 guntas. An approved project plan is necessary if the farm will share a boundary with a new road.

Currently, places like Sangareddy, Kollur, Sadashivpet, Moinabad, Chevella, Shankarpally, Kandi, Shamirpet, Sultanpur, Maheshwaram, Khanapur, Kothur, Shamshabad, etc are the most profitable farmland investment areas around Hyderabad. 

For more information on investment opportunities in farmlands near the above-said locations, feel free to contact us.

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