The Delhi Master Plan 2021 is likely to ensure that the vision of housing 10 million people in the national capital will be realized once 25,000 acres of land is unlocked in a phased manner under the new plan opine experts.
The MPD 2021 has got unanimous support from real estate industry which has voted for the Land Pooling Policy as it will ensure that more land is available for development and also make it easier to get licenses, and permissions from the government. The more availability of land for development will also ensure that quality properties in large numbers are built and sold at a price which is affordable, and does not keep a large group of middle class buyers out of the market. Ramesh Menon, Director, Certes Realty Ltd believes that land is the most expensive and vital cog in this business, and by giving option to landowners, and farmers to develop the land themselves or enter in collaboration with builders will ensure optimum utilization of land in Delhi. “It is because of this reason that land prices have increased in Delhi which will help farmers to monetize the land in a systematic manner”, he adds. Experts say that land pooling will ensure that farmers can enter into deals with developers who have the knowledge, and know how to build and manage quality properties which requires quite an expertize.
Apart from selling the land, and entering into joint ventures it is also being suggested that land owners could enter into Real Estate Asset Management REAM which combines the benefits of a joint-venture and at the same time, de-risks the investment as the ownership of the asset rests completely with the land-owner. An experienced and professional organization assumes complete responsibility in this case, and manage the property, and investment to the maximum benefit of land owners. REAM involves complete real estate management that includes conceptualizing the product, clearances, permissions, developments, marketing, legal assistance post sales management, asset management. The company which undertakes REAM can also lend product/brand name to the project which helps in capitalizing on the brand and equity which has been created in the past by the developer.
Menon opines that the land pooling policy in Delhi will put it on a growth trajectory ensuring that housing becomes affordable, and even more luxury options are available to buyers. This will also end the earlier mode of development which was controlled by government agencies, and ensure that real estate becomes more participative in nature. It is also important for the land owners to understand the various options available to them, and with availability of land in Delhi to become a possibility soon it is expected that Delhi will also take over the lead it had lost to Noida and Gurgaon.
Dated: 27th March 2014