Rising Demand for Farmhouses
Why are farmhouses becoming the preferred investment and lifestyle choice? Find out what’s driving the surge.
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Rising Demand for Farmhouses
In recent years, there has been a noticeable uptick in demand for farmhouse properties. As urban dwellers seek weekend retreats away from crowded cities, farmhouses provide a blend of nature, privacy and investment potential. These properties often come with large land parcels, giving buyers the opportunity to cultivate gardens, orchards or simply enjoy open space.
From an investment perspective, farmhouse plots situated near developing infrastructure corridors can appreciate significantly over time. The dual benefit of enjoying a personal vacation home while holding a tangible asset makes farmhouses attractive to high net worth individuals and families alike.
Understanding NA Conversion
In India, land is classified as agricultural by default. To develop non‑agricultural projects such as residential or commercial buildings, an agricultural plot must undergo Non‑Agricultural (NA) conversion. This process changes the land’s designated use and requires approval from local authorities.
The NA conversion procedure involves verifying the land title, applying to the appropriate local governing body, paying prescribed fees and taxes, and obtaining a final order. Ensuring proper NA conversion is essential because illegal construction on agricultural land can lead to hefty penalties, demolition orders and difficulties in obtaining finance or resale.
Maximising ROI on Land Investments
Land investments can yield high returns when approached strategically. The first rule is location: select plots near upcoming infrastructure projects like highways, industrial corridors or proposed townships, as these factors drive appreciation. Conduct thorough due diligence on zoning, development permissions and legal clearances before purchase.
Adding value through infrastructure, such as internal roads, fencing and utilities, can significantly increase resale value. Diversifying across different types of land (agricultural, commercial, industrial) in various growth corridors also helps mitigate risk. Partnering with an experienced project management consultant ensures that each step from acquisition to development is optimized for profitability.
Understanding the 7/12 Extract
A 7/12 extract is an important land record maintained in Maharashtra, capturing details like survey number, area, ownership, cultivable land and encumbrances. The term “7/12” originates from combined forms 7 and 12, which respectively record details of owners and land cultivation.
Before purchasing land, buyers should examine the 7/12 extract to verify the seller’s ownership, existing loans or litigation, and the nature of the land. This document is available from the local revenue office or online portals and is crucial for ensuring a clear title. Any discrepancy in the extract should be resolved before finalising the transaction.
Key Provisions of the Maharashtra Tenancy Act
The Maharashtra Tenancy and Agricultural Lands Act, 1948, governs the rights and duties of tenants and landlords of agricultural land. It sets out conditions under which land can be leased, the security of tenure for tenants and procedures for resumption of land by landlords.
For investors, understanding this Act is vital because certain restrictions apply to the sale or transfer of agricultural land. The Act provides tenants with first right of purchase and restricts transfers to non‑agriculturists. Any transaction that violates the Act can be declared invalid, so professional legal guidance is essential.
Overview of Government Land Acquisition Laws
Government projects such as highways, industrial zones and public utilities often require acquiring private land. In India, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, governs this process.
Under this Act, land can be acquired only for public purposes, and landowners are entitled to fair compensation, rehabilitation and resettlement. The law mandates social impact assessment, consent from landowners for private projects and defines compensation formulas. Investors planning to purchase land near proposed government projects should monitor notifications and understand the implications of acquisition proceedings.