How to use vacant land to make money in India (6 mins read)

Real Estate has always been one of the favorite investment options. People relate more to it as it is something that you can actually see. But sometimes investors get confused about how to use vacant land to make money in India. To help you with this, WealthDrift has brought to you an article on how you can use vacant land to earn money in India.

1. Farming

The first idea that will come to anyone’s mind will be farming. But the income will depend on the size of the property, fertility of the soil, climate, and demand of your produce in the area. If these factors are suitable then you can earn a good income through the following ways-

• Leasing out- Lease out your property for farming at the rates applicable in your locality. This will act as a pure passive income for you. It can give you something between INR 1 lakh – 5 lakh per month per acre depending upon the soil and location.
• Normal Farming- You can grow vegetables or anything that suits the land type and sell the produce in the vegetable mandi i.e. the wholesale market or you can hire some individual to sell it on your behalf directly to consumers in the city. The income depends on a lot of factors and can vary from INR 20k to 70k per month per acre of land.
• Organic farming Stand- Nowadays, the craze of organically produced food items is at a all time high. Since the consumers have become more aware towards their health, they now want to eat food items with less chemical used in producing them. Therefore, you can do organic farming on your land. The produce can be sold either to the wholesaler or you can set up a nice farm stand near your land to sell the produce. The produce can also be exported. The income can vary from INR 1 lakh to 2 lakh per one crop season per acre of land depending upon the vegetable you have grown and other factors.

2. Outdoor advertising

If your vacant land is at a location from where a huge number of people passes by then it can be a good idea to rent it out to an advertising company or you can set up a billboard all by yourself. It can be near a highway or any public place with a lot of crowd that can offer a huge audience for the brand put on the billboard. In such a case, you can get a good passive income for yourself.  If you lease it out to an advertising company, then you will save the construction and maintenance costs as well.

Rent from a billboard can vary from as low as INR 5k to 1 lakh per month depending on the location

3. Storage Space

To create storage spaces you need to have a larger area of land (an acre at least). It can give you anything between INR 1 lakh to 5 lakh per month per acre depending upon the demand and location. This can fall into the following categories-

• Warehouse- It involves constructing a warehouse and then offering warehouse services to the potential customers.
• Outdoor Storage Facilities- This will need you to build a large fencing around your property with a locked gate. These can be used by landscaping companies to store their raw material or any other company that needs space to keep their machinery.

Before you start this business make sure to keep the following things in mind-

• Location should be accessible.
• Land should be flat to avoid land filling. Land should preferably be rectangular or square.
• Road to the land should have good width for easy movement of vehicles.
• Land should have water and electricity supply.

If you want to know the factors you should consider before buying a commercial property then click here.

4.    Plant Nursery

This can also be a great avenue if the fertility of the land is good. People nowadays want to have nice gardens in their homes. For this, they need a variety of plants which your nursery can provide. You can grow new varieties of plants that are not found easily. This can add an X-factor to your nursery business. You can also grow medicinal plants to sell them to companies that use them in their products. The income can be somewhere between 5-8 lakh per year per acre depending upon the location and how effectively is the marketing done.

5. Build a house

In the world of flats, people are longing to find a nice single-family house or a one/two storey property just for their family. This will require a huge investment on your part but can be a highly profitable deal if the location of the property is good and the architecture suits all the requirements. You can either give it on rent to generate passive income or sell it to make a one-time profit. The income depends totally on the locality and the quality of construction. Rent can be INR 15-20k per month for a 2 bhk type home. 

6. Training Grounds

You can convert your land into the following types of training grounds-

• Athletic Training Grounds- You can set up football field or volleyball field or running track on your land and can open it up for people to use at daily or monthly fees. It will require a larger area of land and investment but once converted into an athletic training ground, you can earn great money passively. Income will depend on the monthly fees that you charge. It can be INR 500-1000 per month per head.
• Training grounds for organizations- You can provide your land to fire departments, construction firms, etc. that needs to train their employees. Because in such firms training the employees is more important. Income per month can be 0.2 to 0.4% of the land value.

7. Parking Lot

This idea might not sound very interesting but it can be a goldmine for you. The condition is that your vacant land should be situated near a public attraction. It is difficult for people to find a safe parking space for their vehicles near a public attraction. So, demand is already there and that too very high, you simply need to fulfill it. You can earn INR 2-4 lakh per month on half an acre of vacant land converted into a parking lot. And during festival times, this earning can grow multifold due to extremely high demand.

8. Drive-in movie theatre

It is a very popular thing in metro cities nowadays as it brings the retro feel to the movie-watching experience. The idea of watching a whole movie without getting out of your car adds another level of enjoyment. You can sit in your car with your loved ones and enjoy the movie. This type of theatre will require a large area of land (at least 4-5 acres) to make it a profitable affair. The set-up cost will include a projector, projector screen, and sound system. But once it becomes popular, it can generate huge income of the order of INR 10-15 lakh per month.

9. Recreational ground

You can also convert your vacant land into the following recreational venues to generate income for yourself –

• Restaurant garden- Convert your land into a “restaurant in a garden”. It can be a treat for both the environmental enthusiasts and the foodies out there. These types of restaurants are gaining popularity these days.
• Activity Centre- If the land is large enough then you can convert it into a paintball arena, small shooting range, outdoor obstacle course, corn maze, etc. Charge the people hourly fees and enjoy the heavy income it will generate.
• A Camping or Glamping Site- If your vacant land is at a secluded that you are not able to sell it, then try converting it into a camping site. It can act as a weekend getaway or a family picnic the working population is searching for. If you have good investment with you then you can also make a Glamping (Glamorous + Camping) site. Charge the visitors on per head basis and start earning.

10. Cell-Phone towers

If your vacant land comes under the searching zone of the cell phone or tower companies then you are a lucky man. Getting a tower on your land can be another avenue which you can go for. Monthly rentals from it can be anything in the range of INR 8k to 1 lakh per month. In metro cities such as Delhi, the rentals may go even higher. A public place away from a residential area is preferable. Generally, the lease is from 12 months to a few years but it can be extended to enjoy benefits for the long term. The area required varies from 500 sq ft to 4000sq ft depending upon the height of the tower.

11. Open a petrol Pump

If your vacant land is near any highway and where petrol pump availability is less, then this is one thing that can give you high income and that too steady provided you fulfill the criteria set by oil & gas company. This will require an investment of the order of INR 30-40 lakhs. Along with this, you will need a capital of approx. INR 2 crores to run a petrol pump. But believe us when we say that if you can manage to open a petrol pump, it will be one thing that your generations will thank you for as it will give you an approx profit of INR 3-4 lakhs per month. This is one thing on the list of ‘how to use vacant land to make money in India’ that can turn into a goldmine for you.

12. Opening a commercial complex

If your vacant land is near a residential area, then you can develop a commercial complex on your vacant land. The investment will basically depend upon the type of complex you built and the area of land you have. But a shop of just 100-120 sq ft area can give you INR 10k-15k rent per month. This will also be an asset that you will be able to pass onto your generation and the income is totally passive.

So, readers, these were 12 uses of vacant land to make money in India. If you liked our article then feel free to share it amongst your peers. If you want to share your viewpoint then let us know through the comment section below