How to make profit investing in Land

An investment in real estate is considered a safe bet by a majority of Indians. Whether it is a small plot or a 2 BHK apartment or a commercial space, there are many ways in which a real estate property can be made into a profitable investment. While a residential property can be sold or rented out to make an income as there is more demand for such properties, investing in land requires more caution. There are many pitfalls that an investor needs to avoid while buying a land as investment according to Sulekha Properties.

Purpose and type of land

In what type of land you want to make the investment depends greatly on what you want to do with the land. You may want to buy a raw land, develop it, and sell it for a profit. Or, you may be looking for an industrial land that you can rent or lease. Unless you have a clear idea of how the land is going to be profitable, there is no point in investing it. Finding the best use for the land is important. For example, you may see an advertisement for land for sale in Pune. You need to know what the prospects are if you invest in that property and whether it can bring a profit with the intended use.


As important as the purpose of land is the place where it is located. The location of the property must be beneficial for high returns from the land. A lot of property buyers make the mistake of buying land at the wrong place and then struggle to get rid of it, even for a loss. For instance, an investor buying a plot in a business centre to develop into a residential facility will have difficulties in finding takers. People prefer to live in residential areas rather than in busy commercial zones. Hence, it is essential to select the location based on the purpose of the land.


Another consideration while choosing the location of the land is the availability of infrastructure and general amenities. Whether the land is to be used for commercial or residential purpose, it is important that it has access to transport, communication, power, water, and other facilities. If the area you have chosen lags behind in these parameters, at least make sure that there is scope for growth in the future. Otherwise, you will be making a dead investment.