How did Land Banking work in Real Estate Market in India?

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The practice of collecting parcel or land blocks at the current or lower market prices for sales or future growth. Land campus collects land by tracking geographical and Land Banking topical sites, which are preparing to invest on the basis of social infrastructure and demographic factors. Generally, the land is made for complex in a complicated format, where property reports, property limits, rules of the field, remittances, registration, approvals, and penalties are put on the ground, and then for land sale or development, it occurs. Land collectors buy land, wait till the land is given importance, then sell it to developers, investors, and other interested parties to earn a big profit.

Sale and purchase form: In this form, the Land Banking collector will buy the land from the landlord and sell it to the third party.

Joint development model: This is a popular development model, which is adopted by most landowners, where landowners and developers connect their resources and efforts. Under the joint development model, the landowner contributes to their land and the developer is responsible for the development.

Land Lease Model: This model is generally adopted for long term contractual property, where landlords offer land without any development. Packing of land through leases through sale and purchase models is less expensive. Here, the land complex acts Land Banking as an intermediary between the lessee and the third party, to handle the leases, provides a guarantee for action and addresses land aggregation.

The practice of collecting parcel or land blocks at the current or lower market prices for sales or future growth. Land campus collects land by tracking geographical and topical sites, which are preparing to invest on the basis of social infrastructure and demographic factors. Generally, the land is made for complex in a complicated format, where property reports, property limits, rules of the field, Land Banking remittances, registration, approvals, and penalties are put on the ground, and then for land sale or development, it occurs. Land collectors buy land, wait till the land is given importance, then sell it to developers, investors, and other interested parties to earn a big profit.

The main factors which determine the location of land banking.

Earth: Earth should be stable and useful.
2. Title: Land should have a clear and marketable address.
Communication: Earth should be well connected by land, rail, sea, and air (current and future).
3. Social infrastructure: Public infrastructure for health, education, housing, transport, and civil facilities should be available in the vicinity.
4. Availability of facilities: Land should enjoy easy access to public utilities (current and future), such as water and electricity.
Educational institutions: existing and upcoming schools and universities.
5. Development factors: According to demographic, geographic, civil and industrial development.
In addition to the above factors, business and residential development surrounding property is also an important factor in land banking services

Undeveloped / Initial Stage: Any land of concern for assembly, which starts in the form of agricultural land, agricultural land or land without any There is no significant increase in value in the land so that it is in line with the development path.

Pre-Development / Development: The value of land starts moving dramatically, once the land starts developing and using the social infrastructure around it.

Growth phase / Maturity: Land changes into residential or commercial property, then gradually its value increases.

The full potential of land-based banking services can be obtained only when the land is purchased in the initial/initial stage. Land banking operates on the basis of patience, most investors ignore land banking as an investment, given the nature of the long-term investment.

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