Banking into a land by identifying its worth well in advance is the key to great investment. Developers today buy land in remote areas and at low prices but the land value sprawls due to urban development and the re-sale value aggrandizes.
Land value can also augment due to development of residential building on an arid land. In this case the land gets distributed amongst several hands and the profit gets appreciated.
Application of farming on dry land makes it fertile and a fruitful land can give bounteous profits when the crop is harvested. Thus farming is another way of initializing land banking.
Price hike is subject to inflation. When the market graph moves upward, the real estate prices also climb a hill.
The concept of land banking is beneficial for the local landlords as well as the developers. The landlords sell a plot at profitable margins though it does not have an esteemed worth whilst the developer develops it in a way that it benefits the developer as well.
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