Financial Holding Costs

Keeping land idle still incurs ongoing expenses that add up over time and reduce the net return on investment.

• Annual property tax, insurance, and security costs can total ₹5–10 lakh per acre
  
• No income generation from rent or resale delays return on capital
  
• Increases opportunity cost compared to active investment options

Market and Regulatory Risks

Delays in development can expose landowners to shifts in policy, zoning, or market sentiment.

• Zoning changes or infrastructure rerouting may reduce land utility or value
  
• Oversupply in the future could lead to price stagnation or decline
  
• Government may impose vacancy penalties or land use mandates in some regions

Physical and Operational Concerns

Unmaintained land may deteriorate or face encroachment, theft, or environmental damage.

• Encroachment risk increases for unsecured plots, especially in peri-urban areas
  
• Degradation of site condition (e.g., drainage issues, erosion) raises future development costs
  
• Perceived inactivity can reduce buyer or tenant interest in resale situations