Things you need to know before buying Gram Panchayat Land

A paucity of land in cities, rising prices, and future prospects often motivate buyers to invest in gram panchayat-approved land. However, such an investment would require converting the agricultural land into non-agricultural land by paying a nominal conversion fee to the government. This guide will help you understand the pros and cons related with gram panchayat land.

1. What is a gram panchayat land?

2. What are the advantages of investing in a gram panchayat land?

3. What are the disadvantages of a gram panchayat land?

4. Is it safe to buy a gram panchayat land?

5. Important points to note while buying a gram panchayat land

What is gram panchayat land?

What are the advantages of investing in gram panchayat land?

What are the disadvantages of gram panchayat land?

Is it safe to buy gram panchayat land?

Despite the numerous benefits are offered by residential societies in urban areas, many buyers fancy the idea of purchasing independent homes. However, due to scarcity of land parcels within the city limits, a majority of buyers move to the outskirts to fulfil their desires. A gram panchayat land, thus, becomes the primary choice for such buyers.

Investing in a gram panchayat land is a lucrative investment option, especially for those who want to earn returns. Since the investment costs are comparatively lower in a village, the returns tend to be higher. However, while pricing is an advantage, buyers must exercise extreme caution concerning the documentation and conversion of a Gram Panchayat-owned land.

What is gram panchayat land? As municipal bodies are the owners of land falling within their respective jurisdictions, gram panchayats own the land parcels within their limits, including villages and towns. Earlier, the gram panchayats only held power to lease the land within their ambit for agricultural or associated use. However, various courts in India have passed judgements, which now allow gram panchayat land to be sold for non-agricultural purposes, including construction.

Depending upon the city of the land, the District Magistrate (DM) or the Collector has the rights to facilitate the conversion of the land for non-agricultural use. To apprise, a land falling under the jurisdiction of a gram panchayat can be used for residential purposes, only after the submission of related ownership documents and the requisite conversion fee to the DM.

What are the advantages of investing in a gram panchayat land?

Gram panchayat lands are often affordable as compared to the land parcels available within the city limits. Moreover, the owner can enjoy a peaceful stay, away from the usual hustle-bustle of the city, at a reasonable cost of living. Unlike the saturated markets of the city, the selling cost of a house built-up on gram panchayat land tends to be higher.

What are the disadvantages of a gram panchayat land?

Investing in a gram panchayat land may have a few disadvantages, like low infrastructural development. Therefore, the owner might have to sacrifice on the availability of several amenities that generally come with land within the municipal limits. Electricity, water supply, and inadequate sewerage system are also a few common issues that you might face. Other than these, connectivity may also be an issue, especially during monsoons.

Is it safe to buy a gram panchayat land?

Experts believe that it is safe to invest in a gram panchayat land, provided the land has been converted, following the due process. However, while buying a gram panchayat land, the buyer must verify the name of the authority that comes under the jurisdiction of the area. In several instances, it has been reported that the gram panchayat lacks the authority to convert land for residential use. In such cases, the buyer needs to approach the Directorate of Planning and Town Welfare. In addition to the name of the authority, the buyer must also check and verify the land usage details to ensure that the land does not fall under reserved category.

Popular Localities

Know Your Neighbourhood Well

Important points to note while buying a gram panchayat land

Pay the conversion fee for the conversion of agriculture land. Usually, it is a percentage of the registration fees.

This fee can vary from one state to another.

If the land is not on the outskirts of the city, remember to follow the panchayat layout rules and guidelines.

While using the land for residential use, make sure you leave one-third space of the land as open space.

You may avail a loan for a gram panchayat land from cooperative banks.

PriyanshSingh Patel, Vice President, Believe Properties, Pune, avers, “Before investing in a gram panchayat land, check that there is a road leading to the property. Usually, gram panchayat land has no direct road/entrance leading to the property. The next point to remember is the permitted conversion of the land from agriculture to residential use. Proximity to water bodies, such as canals or dams, should also be checked before buying such land. A land that is located near a river is unfit for residential construction. In a city like Pune, you should also ensure that the land you intend to buy is not a Kharab land or a Gomala land. In terms of pricing, a gram panchayat land is quite affordable as compared to a normal land parcel in the outskirts of the city. For instance, if a plot located on the outskirts costs about Rs 4,500 per sq ft, a gram panchayat land would be available at around Rs 1,500 per sq ft.”

While gram panchayat properties are ideal for buyers with a limited budget, you should also remember the inherent drawbacks before finalising a deal. To have a smooth transaction, remember to have the necessary paperwork in place.

we Believe Properties here to Give you Perfect Solutions for all your Investments & Dream Homes Come True in Reality .....

Regards,

PriyanshSingh Patel

7798855599