Outlook Money
Land is one of the most important investments people make. Real estate in India is complex and a speculative zone to invest in, but nevertheless, very worthwhile.
Societal developments depreciate due to wear and tear. Even if the overall value of the apartment appreciates due to land value and location, the land's growth can outweigh the building's decline in upkeep. Older complexes require redevelopment or major upkeep changes.
The growth of Indian cities is majorly policy-driven. If the government plans growth sectors and policies in certain cities, the property value may appreciate in the long run.
Zoning determines the land use assigned to the land. Agricultural land typically allows limited use and carries lower value. Lands with permits for commercial, hospitality, or mixed-use permits attract higher value. The land becomes more attractive to developers and institutions, which leads to an immediate price hike.
Floor Area Ratio is the buildable area assigned to any property. If two properties in the same location and the same size are assigned different floor area ratios, the value will be different in both.
To support the appreciation, the infrastructural developments in the area are considered significantly. Airports, transport corridors, road connectivity, and commercial access nearby can be a significant detriment to growth.
While investing in real estate, people should consider whether their property falls in a tourism corridor or not. Places with high tourism footfall, especially religion-specific, have witnessed land appreciation in recent years, such as Ayodhya.
Investing in land is not as easy as other short-term trading. The process is tedious, complex, and long. One must be mindful of what and where they invest.