New Delhi. The Delhi-Mumbai Expressway has not only made travel convenient but has also increased the demand for the land around it. This expressway has been opened only partially for traffic. After complete commissioning, there is a possibility of a strong rise in the real estate market in some areas of NCR and areas near this expressway between Delhi-Jaipur. Even now land is not easily available here. Agricultural land located along the expressway is today being sold by big developers with attractive names like “Farm Zone”, “Eco-Retreat” or “Lifestyle Farmland”. These projects are often touted as expressway-based development investments that will yield manifold returns in the years to come.
But, is proximity to expressways the only guarantee of increasing land values? Real estate experts and legal experts say that behind the flashy advertisements and scenic views, complex legal complications are often hidden. If you are also planning to invest in such agricultural land, then you should first thoroughly understand all the rules and regulations related to the use of land located on the banks of expressways and highways.
Delhi-Mumbai Expressway Section 90A
According to a report by CNBC-TV18, experts say that the biggest challenge before investing is to understand the legal category of the land. The land being sold in many parts of Rajasthan and NCR is still recorded as pure ‘agricultural land’ in the official records. Under Section 90A of the Rajasthan Land Revenue Act, conversion of agricultural land to non-agricultural use is a complex process. In many cases, these lands are sold in the name of ‘farmhouse’, but there is no legal permission for any kind of permanent construction there.
Any construction done without conversion is considered ‘illegal’. Sales materials often include words like “Conversion possible in the future” or “Approvals pending.” Experts say that until the notification of change of land use is issued in the Government Gazette, even placing bricks on that land is risky. Rights to build are available only where the Land Use Permission (CLU) is formally approved.
Does the rate definitely increase near the expressway?
The value of land does not increase just because it is near an expressway, but depends on whether the area is part of the future government master plan or not. According to Vardan Singh Chaudhary, founder of Corridor Assets, “Land value appreciation depends more on government-driven urban planning than on market whims.”
Chaudhary argues that investment is safer in areas that fall within the limits of urban local bodies (ULBs) or are located near the exit points of expressways. Lands that do not have safe and all-weather accessible roads create problems. During recession it becomes almost impossible to sell such land. In contrast, projects that integrate with the urban master plan have greater potential for future commercial and residential use.
Farmhouse cannot be built without permission
A big misconception is spread that it is easy to build a farmhouse on agricultural land. The reality is that even for farmhouse construction, there are strict rules regarding minimum plot size and local bodies. If an investor builds on land where zoning does not permit, he may face heavy fines and demolition. In recent years, bulldozers have been used on a large scale on such illegal constructions in many areas of NCR.
Experts say that only the projects developed in the form of ‘gated farm-lots’ built after following the complete legal process are ‘bankable’. This means that there is a possibility of getting a home loan or mortgage loan on such properties in future, which increases their market value. Assets without documentation often remain outside the formal banking system, which can prove to be a loss-making deal for investors.
investigation mandatory
Before buying agricultural land near an expressway, you must check these 6 things-
- Title and Mutation Records: Check the title records (Jamabandhi) of the last 30 years so that the ownership is clear.
- Restricted Area Check: Make sure that the land does not fall under any forest area, Aravali eco-zone or buffer zone.
- 90A Conversion Eligibility: Is the land legally eligible to be converted into residential or farmhouse category?
- loan liability (Encumbrance Certificate): Ensure that there is no bank loan or legal dispute pending on the land.
- Width of approach road: Is the road available on site as wide as shown on paper?
- Nearby Development: Will basic facilities like electricity, water and sewerage be available there in future?
Immense potential for development here
Robin Mangla, infrastructure expert and President of M3M India, says connectivity alone cannot create sustainable value. According to him, “Compliance, access and coordination with the urban master plan is what makes the investment sustainable.” In this direction, areas like Alwar are now becoming new attractions for investors of Delhi-NCR.
