Land Banking is the process of acquiring strategically located raw land at advantageous prices, with the objective of selling at a substantial profit in the future. With a resource that constantly increases over time driven by economic and population growth, land prices continuously appreciated and will continue to for years to come.

In an age when financial markets are as volatile as ever, investors have become more restless as their estate are now exposed to more threats. Under these conditions, it's becoming increasingly important to build a portfolio not only on the basis of its returns but also on the risk that it presents to the net worth of the investor. Therefore, for risk management and diversification of portfolio, hard assets are being recommended by investment advisors more and more often to their clients.

One of the time tested hard assets is Real Estate. The most common investment under Real Estate involves purchasing a developed property such as houses, condominiums and commercial spaces which the market's high dependence on several volatile factors can cause property values to fluctuate. However, undeveloped or agricultural land, the starting point of any real estate property, is not subject to this kind of volatility and instead, has continuously appreciated at a more stable rate.

As development continues to accelerate and as city limits push further and further, land absorption continues to rise. But before development can take place in any agricultural land, the property must go through a rezoning process. After receiving the government's approval of rezoning, the value of the land increases significantly with its potential value to developers alike.

Participating in the earliest stage of the real estate life cycle is called Land Banking. This is an investment strategy with investing in an asset free of market volatility and fluctuations; unlike stocks, bonds or retail properties. Land is a tangible, hard asset that preserves wealth and appreciates in value over time.