Ongoing Financial Responsibility

Land holding costs are the recurring expenses you must pay to maintain ownership and basic care of a property, even if it’s not in active use. These are essential to protect the asset and meet legal obligations.

• Begin from the date of land purchase
  
• Apply to both vacant and developed plots
  
• Important for budgeting during non-revenue periods

Core Cost Categories

These expenses ensure the land remains secure, insurable, and in good condition. Neglecting them may lead to damage or legal issues.

• Insurance: one to two lakh per year for fire, theft, or liability coverage
  
• Security: one to three lakh per year for guards, CCTV, fencing, or watchmen
  
• Upkeep: one to two lakh per year for cleaning, weed control, drainage, and repairs
  
• Taxes: property tax of one to two percent of land value
  
• Utilities: minimal, unless land has active power or water supply

Total Annual Estimate

For an industrial land parcel valued at three crore, the total land holding cost typically falls within a predictable range.

• Expected yearly cost: five lakh to eight lakh
  
• Higher in cities, lower in rural zones
  
• Should be included in investment forecasts