What are the benefits of an Agrihood Community?

What are the benefits of an Agrihood Community?

An agrihood community is a mixed-use development with community farm as a focus. The development of Agrihood communities in India is at a nascent stage and the product available today in the market is either a farmhouse or only farm plots. Agrihood communities, offer multiple benefits to all the stakeholders; a few are listed below:

Access to fresh, healthy produce

Today, eating fresh, healthy, and local food has gained prominence. Overall consumption of pesticide free, organic food is preferred over conventional food produce. Agrihood communities give an opportunity to the consumers to be part of the farming cycle and provide access to fresh produce. Additionally, produce grown on the farms reaches consumers or owners more quickly and with less handling.

Increased community interaction

Agrihood communities act as meeting venue or a community space for the occupiers or owners of the communities. It offers opportunities to learn about agricultural methods, irrigation techniques, crop rotation, soil health, sustainability, horticulture, animal husbandry, and nutrition and learning opportunities for kids and youth within the community.

Employment opportunities

Agrihood communities offer employment opportunities as well as help skill building of the people around the community. It provides employment opportunities to the farmers and other residents in proximity to the community. These communities provide an opportunity for sale of value-added products namely jams, pickles, chutney, and facilitate exchange of traditional local recipes. Also, these communities improve overall connectivity and social infrastructure around the project.

Improved Wellbeing

It also provides an opportunity for physical exercise and increased well-being. Some of the agrihood communities along with farming also offer opportunities to learn and practice yoga and meditation, trekking, cycling, learn horse – riding and permits interaction with farm animals.

Other benefits

These communities support biodiversity, helps reduce stormwater drain run-off, improve, or retain air quality in proximity to the project. Organic farming helps in reducing the usage of pesticide, herbicide, or synthetic fertilizer use. These communities also help retain the rural fabric of the region.

Higher returns

Agrihood communities largely offer two options – fruit farming or agroforestry options (teak / timber / silver oak trees are planted). An end-user returns in both the scenarios range between 19% - 22% with a minimum holding period of 15 years.

In India, the concept of Agrihood Communities is at a nascent stage, and we expect development of Agrihood Communities is likely to gain traction on account of increased preference for healthy lifestyle, Work from Home (WFH) and Farm – to – table Living. Going forward, agrihood communities are likely to be evaluated as an option to a second home or a weekend residence where the end-users can enjoy farming as well as stay in a rural environment.

Our latest Research Paper on Handbook for development of Agrihood Communities in India is a good read for developers, property owners and investors and provides insights and guiding notes for development, planning, partnerships, consumer insights and proptech applications in setting up and operating an Agrihood community.


About the Author

Dhara Shah

Dhara Shah

Dhara has over 10 years of experience in Real Estate Investment and Consultancy. She has executed deals worth USD 10 million and led the team on executing 100 valuation assignments in the last 3 years. Prior to joining Meraqi she has worked with Vestian, UGL Equis and BPCL. Dhara is B.E (Civil) from S.V.NIT, Surat M.Tech (Infrastructure Planning) from CEPT, Ahmedabad.