The trend of establishing organic farmlands is gaining traction in Pakistan and their number has increased by nearly 30% in the last two years. Unlike 'regular' agricultural land, the soil that is used in organic farmlands does not contain any pesticides or chemicals. Fruit and vegetable grown on these farmlands are therefore considered to be healthier than those grown on non-organic ones.
If you are thinking about investing in an organic farmland, factor in the following:
1. Farmland sizes range between two and eight acres
2. The value of, and the demand for, organic farmlands increased by 18 to 20% every year.
3. Investors are increasingly purchasing regular farmlands and converting them into organic ones by treating the soil and then renting them out. Rentals amount to 15 to 18% of the total value of the property.
4. People who choose to grow crops on the farmland they have purchased benefit from a return on investment (ROI) that ranges between 22 and 30% each year.
5. Organic farmland is increasingly available in the following areas:
Islamabad: Fateh Jhang Road
Karachi: Gadap and Malir
Lahore: Bedian road and BRB Canal Road
Rawalpindi: Chakri Road
6. The prices of organic farmland are as follows:
Purchase price range: Rs. 1.6 - 2.5 million per acre
Monthly rental range: Rs. 40,000 - 55,000 per acre
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