The Delhi Master Plan (MPD) 2021 which envisages a new Land Pooling Scheme as well as opening of agriculture land for farmhouses is definitely going to impact real estate sector in a positive manner across the National Capital Region. Experts opine that Delhi MPD2021 will particularly cool the land prices, and bring down the rate of apartments by 15 to 20 per cent in Noida, and Gurgaon which have been the real estate hotspots in the last decade. In the next couple of years as more land comes for development in Delhi it will also give more option to homebuyers to buy property in Delhi which had become almost impossible due to skyrocketing prices.
Ramesh Menon, Director, Certes Realty Ltd, says that Delhi MPD 2021 is going to create one of the largest opportunities in real estate sector in the country because there is assured demand for property in the national capital. The land pooling policy also allows landowners, and farmers to become partners in development which will ensure that real estate project are easier to launch as there would be lesser need to buy land which is the most expensive component of any project. The land pooling scheme will also ensure that there is adequate space for infrastructure such as roads, public utility services, parks, and related projects, EWS housing, says Menon. As per the Delhi MPD 2021, several thousand acres of land will be brought under urbanization to accommodate close to 5 million people by 2021. The policies under this plan also ensure that government does not have to go for compulsory acquisition of land which has become increasingly difficult in the past few years.
Experts opine that this opening up of real estate in Delhi will hold the astronomical price rise in NCR region where rates have shot by 150 to 300 per cent in some areas in last one decade. The affordable housing sector will also get a boost as luxury housing in Delhi is moving towards farmhouses with this plan allowing for more FAR, and one acre farmhouses in national capital. Menon also says that there would be more end users in the market now as prices dip but developers will have to build what they promise, and deliver in time. In his opinion, there is also a need to cut speculation, and short terms investment in real estate which has often lead to bubble like situation with projects getting stuck in half-way stage, and property prices remaining high due to artificial reasons.
It is also being felt that Land Pooling will also ensure that developers do not have to spend a fortune on buying land, and creating land banks which will ensure easier launch of projects. It would also become easier to aggregate urbanizable land as government would give FSI or land which already has provisions for roads, power, sewerage and other infrastructure. Menon opines that real estate development will become more smooth, organized, transparent with the MPD 2021, and also correct prices for the benefit of the customers.
Dated 31st March 2014