The evolution of managed farmlands concept in urban real estate

India is a country where buying a piece of land is not just a means of adding to your portfolio or financial security, but it has always been laden with emotions – a social rite of passage and an emotional experience. Despite the surge in prices, this emotional sentiment remains unchanged.

Real Estate Surge: Best Amidst The Class

India’s real estate market experienced significant growth in 2023, reaching a staggering worth of $265 billion. Projections suggest that by 2047, it could skyrocket to an impressive $58 trillion. Currently contributing 7% to the GDP, the real estate sector is a cornerstone of major businesses. By 2047, it is expected to contribute more than 15% to the country’s GDP.

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These above figures are not just projections, but a reality that will soon make real estate the leading contributor of India’s economy.

Urban expansions threatens green harmony

The surge in real estate demand and urbanisation has led to a reduction in green spaces. Urban areas like Yelankha, Sarjapur, Hoskote and Devanahalli in Bangalore, once considered rural, have witnessed significant development and a surge in property prices over the last decade. This in turn has led to several environmental issues, particularly air quality. According to the 2021 World Air Quality Report, India is home to 63 of the 100 most polluted cities and ranks as the third-largest emitter of carbon dioxide globally.

With a growing population, and the need to provide spaces for people we are causing damage to earth by cementing it or leaving it open. This in turn is leading to soil contamination, i.e., destruction of our main source of food. Which is why people who are keen on consuming healthy food should take control of the food that is grown for them, and indulge in activities like planting more trees, which in turn nurture the soil.

Managed farmlands: The new asset class

We humans are made up of elements of nature, and therefore there is always an innate longing for nature and authentic connections reminiscent of simpler times prevails. Let’s face it with urbanisation our methods of building houses are not corresponding with the laws of nature. And to address this issue, the concept of managed farmlands has come into existence.

Managed farmland is a new asset class that is designed for the foreseeable future. It is a sustainable concept to own farmlands, contribute to sustainability and greenery, whereas a group of experts manage the farmlands for you, creating an environmentally conscious space to reside in.

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With managed farmlands you own a secure, sustainable, tech enabled and a rewarding asset, that you might not be able to witness in standalone farms. As in managed farmlands, the farming operations are done on a larger scale as with large parcels of land we can bring down the cost of entire operations, as the farmlands share resources.

Moreover the concept of managed farmlands is built on gated communities, that brings people who share the vision of incorporating sustainable practices in their daily lives together, and makes the whole journey of managing farmlands rewarding.

These above mentioned advantages might draw you to instantly own a managed farm plot of your own, but given the fake schemes prevailing in the market, it is necessary that you do your own research about a company in terms of scalability, previous projects, and know if they are SEMI regulated. People should partner with a company that not only has the ability to sell, but to manage.

Urban real estate in 2024

In this evolving landscape, Bangaloreans are increasingly seeking farmland, envisioning it not just as a property but as a prospective home and sanctuary for future resources. This has led to over 50 corporates providing this service in Bangalore and over 10,000 acres have been developed under this model.

Therefore, as we look ahead to 2024, the expectation is a shift towards investments in managed farmlands, that is rewarding in terms of economic and environmental success in coming years.

The author is CEO, Hosachiguru