In the years ahead, as cities become even more congested and climate patterns get more unpredictable, this trend may become less of a luxury and more of a necessity, writes the author
Farmhouse Investments: A Climate-conscious Urban Trend
Ashwin Kumar May 14, 2025 Add to Reading List
In the past few years, there’s been a noticeable change in how urban Indians see real estate, lifestyle, and the environment. With cities becoming more crowded, hotter, and increasingly polluted, many people – especially professionals, returning NRIs, and affluent middle-class families – are looking for a way to slow down and reconnect with nature. For a growing number of them, the answer lies not in high-rise apartments or gated towers, but in something far more grounded: farmhouses.
Once seen as luxury retreats for the ultra-wealthy, farmhouses are now being viewed in a different light. They’re becoming serious investments and practical lifestyle choices for those who want both peace of mind and long-term value. These homes on the outskirts of major cities offer more than weekend getaways. They’re spaces where families can grow their own food, breathe cleaner air, and even live full-time with modern comforts – all while being closer to nature.
The numbers support this shift. A survey by 360 Realtors revealed that 58% of high-net-worth individuals (HNIs) in India are interested in buying farmhouse properties. Among them, 26% are ready to invest between Rs 1.5 to Rs 3 crore, while nearly 13% are considering budgets between Rs 3 to Rs 5 crore.
The reasons behind this trend are clear. Urban life, while full of opportunities, often lacks green spaces, fresh air, and time to unwind. During the Covid-19 lockdowns, when people were confined indoors, the value of open land and flexible living became even more obvious. Remote work and hybrid models made it possible to live further from the city without giving up careers. That opened the door to a new kind of living – one where a home could also be a small farm, a retreat, or even a self-sustained space.
Modern farmhouses are often designed with sustainability in mind. It’s common to see solar panels, organic vegetable gardens, compost pits, natural water bodies, and rainwater harvesting systems on these properties. In some planned farmhouse communities near Bengaluru, Pune, Hyderabad, and Delhi-NCR, managed services ensure that even city dwellers with little agricultural experience can maintain their plots. These spaces blend rural charm with urban convenience, offering both escape and practicality.
Financially too, farmhouses are proving to be smart investments. In peri-urban areas around major cities – especially in Karnataka, Tamil Nadu, Maharashtra, and Telangana – land values have been rising steadily. Reports suggest that annual appreciation rates range between 6% to 15%, driven by improved road connectivity, government infrastructure projects, and rising demand. Managed farmland projects, where farming is taken care of by professionals, are showing annual returns of up to 12% to 15%, not just from land value but also from crop production and eco-tourism.
Still, this isn’t a risk-free market. Investing in a farmhouse involves more than just buying land. Legal checks are essential – especially regarding land titles, zoning laws, and agricultural land ownership rules, which vary from state to state. Additionally, responsible development is key. Over-extraction of water, excessive construction, or monoculture farming can harm local ecosystems. The idea of sustainable living only works if the investment is made thoughtfully and in harmony with the land.
As climate concerns grow and people look for ways to reduce their carbon footprint, the idea of “back to the earth” is gaining new meaning. Farmhouse living offers a chance to build a life that is not only quieter and healthier but also more environmentally responsible. It reflects a shift in values – from constant speed and consumption to slower, more conscious living.
In the years ahead, as cities become even more congested and climate patterns get more unpredictable, this trend may become less of a luxury and more of a necessity.