DDA’s land-pooling policy: Will it dampen property prices in NCR
Can runaway property prices in Gurgaon and Noida be reined in? That could happen with about 40,000 acres of land expected to come into the market because of Delhi’s new land-pooling policy. This could mean some 1.5 million apartments will be launched over the next three-four years in the city, possibly having an impact on the appreciation in the value of property in the wider National Capital Region, which includes Gurgaon and Noida.
The policy announced by the Delhi Development Authority recently is aimed at freeing up land and ensuring infrastructure is in place before construction of homes begins in newer areas of the city that are residential zones under the city’s master plan.
Landowners can pool their land for development by the city’s land-owning agency. But instead of being compensated when the government takes over the land, the owners will get 48-60% of it back after the authority has set up the infrastructure.
The owners will be allowed to build on this land themselves or give it to real estate developers in Delhi Ncr. The Master Plan of Delhi 2021 envisages development of several hundred acres of land for accommodating an additional population of 48 lakh by 2021, up from the current 1.6 crore. “More homes and planned development would mean prices will come down,” said a senior DDA official who did not wish to be named.
Importantly for the authority, this will be an alternative to the compulsory land acquisition and disposal process, he said. The new land acquisition bill that has been recently passed by the Parliament will make it difficult to acquire land, he added.
The new policy will arrest the sharp rise in property prices in NCR areas such as Gurgaon, Noida and Ghaziabad, said Gaurav Jain, a town planner and managing director of land consultancy Samyak Properties & Infrastructure. Prices of residential property on the Dwarka Expressway in Gurgaon, for instance, have seen a 150% increase in prices in the last five years, according to property consultancy DTZ.
Source: The Economic Times, Delhi/NCR
Posted on November 13, 2013, in Real Estate and tagged Affordable Houses in Delhi NCR, Greater Noida (WEST), Residential Properties in Ghaziabad, Residential Properties in Greater Noida, Sanjay Rastogi, Sanjay Rastogi Builder, Sanjay Rastogi Builders, Saviour Builder. Bookmark the permalink. Leave a comment.