Land entitlements refer to the legal approvals and rights obtained from government authorities to develop or change the use of a property. Securing the right entitlements before selling land can significantly increase its market value by reducing uncertainty and shortening the buyer’s timeline to build.
Below are five key entitlements that improve land value before a sale:
1. Zoning Approvals
- Confirm that the land is zoned for the intended use (industrial, commercial, residential).
- Rezoning to a more valuable category (e.g., from agricultural to industrial) can enhance value.
- Upzoning allows for higher-density or multi-purpose development, attracting developers.
2. Land Use Change Permissions
- Secure formal land conversion from agricultural to non-agricultural use (NA).
- Ensure alignment with the Master Plan or Development Plan of the local authority.
- Obtain approval for mixed-use, SEZ, or industrial park status if applicable.
3. Environmental Clearances
- Acquire Environmental Impact Assessment (EIA) approval if the land was historically used or intended for industrial purposes.
- Clearance from the Pollution Control Board builds buyer confidence and reduces post-sale compliance.
- For ecologically sensitive areas, obtaining forest or wetland clearance adds credibility and legal security.
4. Development Plan Sanctions
- Approved layout or site development plan from the town planning authority.
- Includes sanctioned roads, open spaces, utility corridors, and zoning within the site.
- Ensures that a buyer can begin development immediately without delay.
5. Infrastructure and Utility Connections
- Obtain preliminary or permanent approvals for water, power, sewage, and road access.
- Having a sanctioned right-of-way (ROW) for roads or pipelines increases operational readiness.
- Install temporary access roads or electricity to demonstrate site readiness.
