In the parts of Rajasthan, and the adjacent NCR area, developers have turned to selling agricultural parcels of land to marketers of farm zones along the expressways and highways. Their marketing package displays these features as long-term investments that enjoy the growth of infrastructure, which accentuates scenic location, privacy, and rise in value.
Experts in the real-estate business caution that the closeness to an expressway will not necessarily translate to the security of an investment, or an increase in its value. Legal position, compliance with planning and regulatory positions are important areas that an investor needs to evaluate before putting money.
1- Increasing Highway Related Agricultural Land.
Development along highways is being transformed by new express ways into hybrid types of assets, lifestyle assets at one value, speculative potential at the other. The fact that infrastructure improves the demand of a commercial property in Jaipur also reflects that the availability of expressways is interest in developing the rural land pockets beyond the conventional urban boundaries.
In comparison to the office space or office in Jaipur, land use is much stricter on agricultural land. Hundreds of parcels are under agricultural land, where no conversion has been approved under the Rajasthan land revenue act of 90A, approved layouts by the senior town planner, and are not within the limit of the Urban Local Body (ULB), thus limiting development rights.
2- Legal Status: The Ultimate In Check.
The language of sales brochures always includes such words as future conversion, approval is in progress, or just approaching the infrastructure. Nonetheless, according to the real-estate practitioners, the only approvals officially granted and notified should be considered to be lawful. The right to build does not pass to buyers even when the conversion is orally promised without any formal conversion of the land. This is an important distinction when contrasted with the structuring assets like small commercial office space in sale at Jaipur, or commercial office rents less than 10 lakhs where there is a clear definition of zoning and usage.
3- Based on Access and Planning Long-term Value.
Vardan Singh Chaudhry, Founder of Corridor Assets believes that sustainable land value is based on physical access and planning integration. According to Chaudhry, land parcels that lack safe, all-weather access do not experience good liquidity, particularly in a market that is performing poorly. He continues by saying that land appreciation is after the government-led urban planning rather than the market speculation. Localities which follow the ULB master plans, expressway exits approved, and economic corridors supported by the state tend to be more likely to change to urbanisable assets in the long run. This is a reflection of the trends in lease commercial office markets in Jaipur where planned connectivity and zoning is a direct influence on the rental outputs and resale values.
4- Construction Permissions: An Invariable Factor.
Professionals emphasize on certified rights to construction. Farmhouses, villas or short stay accommodation can only be supported by land with approved land-use, clear permissions on building as well as legal approvals. The land without such approvals will be stopped at construction, may have a legal notice or demolition order. The historical enforcement efforts in the NCR indicate that regulatory risks are a reality that is very expensive. According to Chaudhry, gated farm-lot developments, which are legally compliant, are more bankable and can be someday institutionalized (readily, like office space rent in Jaipur or a showroom to sell in Jaipur).
5- Principal Due Diligence Investor Checks.
Prior to investment in the farmland around the expressways, professionals suggest conducting the following checks:
Ascertain that the land is not within restricted or forest zone or environmentally notified zone.
Check requirements on norms of minimum plot size in order to convert to farmhouse or residential.
Guarantee title, records of mutations and history of encumbrances more than 30 years old. The failure to take these steps may greatly expose the law and financial risk.
6- Growth with Strings Attached: Expressway-Led Growth.
All industry players attest that infrastructure can only stimulate development coupled with compliance and planning decorum. The connectivity itself is not going to generate sustainable value. Compliance, access and integration with city master plans are also imperative as well, says Robin Mangla, President, M3M India. As the expressways networks are growing, the same trend can be seen in any asset category- farmland or office real estate to sell in Jaipur as well as in corporate office development.
7- A case in point is Alwar and the NCR Periphery.
Mangla further states that focused planning was a possible solution to enable the region to expand without necessarily inheriting the congestion and ecological burden of NCR and become enticing to the wealthy investment of lifestyles and future commercial developments.
Final Thoughts
The farmland along the expressways can contain the long-term potential although sustaining by definite legal status, alignment of the planning, and regulating approvals. Such investments opportunities should be treated by the investor with the same care as in the structured assets such as commercial office space in Jaipur, office space to be sold in Jaipur or corporate offices to be situated in Jaipur. In property, whether farm or office, it is compliance, and not connection, which produces enduring value.
