- The cost of agricultural land in Telangana has been rising steadily in recent years.
- In some areas, land prices have increased to around $37,280 in the last two years.
- Some of the factors that influence the cost of land include soil quality and infrastructure.
- Lastly, research and consult with experts to ensure that you make a sound investment.
If you want agricultural land in Telangana, one of the first questions you'll likely have is how much it costs per acre. Understanding the market is crucial.
Based on recent listings on real estate websites, the average price of agricultural land in Telangana ranges from 13 lakhs ($9,693) to 2.8 crores ($208,772) per acre. These prices are subject to change and may not reflect the true market value. Costs like legal fees and taxes may apply.
Whether you're a farmer looking to expand your operations or an investor interested in farmland, understanding Telangana's land cost is an important first step. Luckily, I have interacted with various industry experts and done all the research for you to help you familiarize yourself with the Telangana land market. Read on to learn more.
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Average Price of Agricultural Land in Telangana
If you are considering buying agricultural land in Telangana, it’s important to know the average price of land in the state. Here’s a breakdown of the average prices of agricultural land in Telangana:
1 lakh Per Acre Agricultural Land in Telangana
The average price of farmland in Telangana per acre is around Rs. 1 crore ($74,561). However, recent property listings or website ads show that the price can range from Rs. 13 lakhs to Rs. 2.8 crores (approximately $9,693-$208,772) per acre, depending on the plot area and quality of the land.
For instance, when you search for property listings or land for sale in Hyderabad and its surrounding areas, you’ll find that it's more expensive than land in other parts of the state.
Average Price Per Hectare
Generally, agricultural land for sale in Telangana costs around Rs. 1 crore per acre, as mentioned earlier. However, one hectare is equal to 2.47 acres. Therefore, the average price of agriculture land in Telangana per hectare is approximately Rs. 2.5 crore ($186,404).
The Differences in Land Prices Across Telangana Regions
The price of agricultural land in Telangana also varies depending on the region. For instance, the price of land in the districts of Hyderabad, Ranga Reddy, and Medchal-Malkajgiri is higher than the price of land in other districts.
On the other hand, the price of land in the districts of Mahabubnagar, Nalgonda, and Khammam is relatively lower.
Comparison with Other States
The average price of agricultural land in Telangana is relatively lower than the price of land in other states such as Punjab, Haryana, and Maharashtra.
For instance, the average price of agricultural land in Punjab is approximately Rs. 2.5 crore ($186,404) per acre is higher than Telangana's average land price.
However, it’s important to note that the price of a new property in Telangana has been steadily increasing over the last few years due to the state's growing economy and increasing demand for land.
The Impact of Government Policies on Land Prices
If you are considering buying agricultural land in Telangana, it’s important to understand the impact of government policies on land prices. Over the years, various government initiatives such as land reforms, irrigation projects, and subsidies have affected land prices in the state.
One of the most significant government policies that have impacted land prices in Telangana is land reforms. In 2016, the Telangana government implemented the Land Records Updation Programme (LRUP), which aimed to update land records and provide farmers with spot registration and clear titles to their land.
This initiative helped to reduce land disputes and increase transparency in land transactions, leading to a rise in land prices.
Construction of Irrigation Projects
Another government initiative that has impacted land prices is the construction of irrigation projects.
The Telangana government has invested heavily in irrigation projects such as the Kaleshwaram Lift Irrigation Scheme, a project that aims to provide water to drought-prone areas of the state.
Water availability has made previously barren and clear land suitable for agriculture, leading to increased demand and land prices. Overall, government policies have played a significant role in shaping land prices in Telangana.
Factors Affecting the Cost of Agricultural Land in Telangana
Looking to buy agricultural land in Telangana? Here are some of the key factors that affect the cost of agricultural land in Telangana that you need to know:
The location of the land is one of the most important factors that determine its price. Agricultural land close to shopping centers, reputed schools, and hospitals tends to be more expensive than land in rural areas.
There’s a higher demand for properties in urban areas due to the availability of markets, transportation, and other contemporary amenities like a swimming pool. Most people want a peaceful place with enough security but still be close to cities or towns.
Additionally, land located in areas with a highway or good road connectivity and infrastructure tends to be more expensive than land in remote areas.
The soil quality is another important factor affecting the price of agricultural land. Land with fertile ground provides a wonderful opportunity for cultivation and therefore tends to be more expensive than land with poor soil quality.
Irrigation Facilities/Water Availability
Water is a critical resource for agriculture, and the availability of water significantly impacts the price of agricultural land. Land with good irrigation facilities or access to water sources such as rivers, lakes, or borewells tends to be more expensive than land without such facilities.
The presence of infrastructure such as roads, electricity, and communication facilities also affects the price of agricultural land. Land located in areas with good infrastructure tends to be more expensive than land in areas without such facilities.
Trends in Agricultural Land Prices in Telangana
Land trends are also important when buying land. You need to do research and consult with experts before investing in agricultural land in Telangana.
If you’ve been following the trends in agricultural land prices in Telangana, you will know that they have been on the rise for the past few years.
According to a report by The New Indian Express, farmland prices have risen from the previous range of Rs 15 lakh to Rs 25 lakh ($11,184-18640) to about Rs 50 lakh to Rs 60 lakh ($37,280-44,736) for an acre in just two years. This is particularly in areas adjoining Warangal Highway and Warangal City. Similarly, in Nizamabad town, the minimum price is Rs 10,000 ($121.742) per square yard.
The report also mentions that after the formation of the Kamareddy district, land rates have shot up in these parts, which were, by and large, ignored by investors earlier. The minimum price of agricultural land has been fixed at a price of Rs. 75,000 ($918.18) per acre by the Telangana government.
As of the current date, the prices of agricultural land in Telangana are still on the rise. Experts believe that while many sectors of the economy brace for a recession, the land industry seems to be headed toward stabilization. While land value may decline slightly, most people anticipate 2023 prices to plateau and remain steady all through the widely anticipated economic hardship.
The Future Projections of Agricultural Land Prices in Telangana
If you’re considering investing in agriculture land in Telangana, it’s important to understand the future projections of land prices. The current trend of increasing land prices is expected to continue in the coming years due to several factors:
Firstly, the Telangana government has revised the land rates in the state, increasing the book value of agricultural land from the current minimum of Rs 10,000 ($121.742) per acre to Rs 75,000 ($918.18). This increase in valuation is expected to have a positive impact on land prices.
Secondly, the demand for agricultural land is expected to rise due to the growing population and the increasing need for food production. As a result, the value of agricultural land is expected to increase in the future.
Thirdly, the government's focus on developing the agricultural sector is expected to increase the demand for agricultural land. The government has implemented various policies and schemes to support farmers and improve the agricultural sector, which is expected to attract more investors to the sector.
The Role of Technology in Land Valuation and Its Impact on Land Prices
Technology has played a vital role in land valuation in recent years. With the advent of satellite imagery and drone surveys, land valuation has become more accurate and efficient. In Telangana, the use of technology has helped to determine the value of agricultural land more accurately.
For example, satellite imagery is an important tool used in land valuation. It provides a detailed view of the farm land and helps identify the land's different features, such as soil type and water availability.
Drone surveys are another vital tool used in land valuation. They provide a high-resolution view of the land and help identify things like plot dimensions, the presence of a boundary wall, or any changes that may have occurred over time.
Overall, using technology in land valuation has helped make the process more accurate and efficient. Additionally, other emerging technologies like precision agriculture and vertical farming are expected to impact land prices significantly.
About THE AUTHOR
Brittany has been in the land business since 2020 when the world was starting to shut down. Since then, we’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans mostly in the western United States. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.Read More About Brittany Melling