Most individuals think that the Indian property market is a way to make profits, as people invest in land when prices are low and later gain from the increased margin. But according to Bhaarat Wealth Group, institutional investors work on a much more disciplined methodology by analysing land intelligence, policy changes, and infrastructure activities long before they hit the market.
Four Key Factors That Drive Land Value
Bhaarat Wealth Group mentions 4 determinants of land value appreciation in India.
1. Land Use Classification
In many cases, the legal status of a land parcel is more important than its location. Farmlands designated for residential and commercial development can see a dramatic rise in prices, despite the land remaining the same.
2. Floor Area Ratio (FAR)
The value of a land is directly related to the extent of construction allowed. Any land value increase due to FAR change through master plan or zoning rule change will reflect an increase in the value of the physical land.
3. Infrastructure Corridors
Large projects like expressways, airports, industrial corridors, and overall urban built-up areas are opportunities for growth over time. Institutional investors keep track of government notifications, tenders, and master plan directives to learn about upcoming opportunities.
4. Local Market Activity
Publicly accessible registration data can alert to growing demand for a particular village or sector before rising price levels are realized. Tracking of transaction activity can identify investment hotspots early in their development.
Data Powers Real Estate
However, these drivers are not secret or confidential; they are available from public sources such as land registers, master plans, zoning notifications and infrastructure communications from the government. They differ only in how systematically they assess this data and link it together to make investment decisions.
Sahil Marshall, the founder of Bhaarat Wealth Group, said that as India progressively digitises land records and planning data, information availability on land intelligence will become more reliable. Bhaarat Wealth Group predicts that integrating land classification, planning permission, infrastructure programs, and transaction patterns will become increasingly significant for identifying high-potential investment corridors in the country.
Bhaarat Wealth Group is a New Delhi-based land investment intelligence company focused on establishing strategic land corridors throughout India. The company primarily leverages data-driven research & land intelligence to spot potential emerging investments before they hit the mainstream.
