Land Pooling Scheme to unravel one of the largest real estate opportunity in Delhi

Land Pooling Scheme to unravel one of the largest real estate opportunity in Delhi

The Land Pooling policy which has come into play after the approval of Delhi Masterplan 2021 will allow developers, and builders easy access to land, and they will be able to directly collaborate with farmers/ landowners to build real estate. Instead of paying compensation, the owners will get back 40 to 60 per cent of the developed land which will have the necessary infrastructure that includes roads, streetlights, lanes and drains which will be developed by the DDA. The policy of land pooling experts say is going to be a boon for the National Capital Region as it will stabilize the rate of real estate in Gurgaon, and Noida, and other related areas. Right now property prices are very high in these areas as they have seen almost 300 per cent appreciation in last one decade. With fresh supply coming gradually in Delhi the property rates will eventually rationalize in these markets, feels Ramesh Menon, Director, Certes Realty Ltd, adding that a number of areas in outer Delhi where land is available are witnessing rise in rates. These areas include North Delhi (Akbarpur, Mazra), North-West Delhi (Rohini, Narela), West Delhi (Najafgarh, Dwarka), and areas of South Delhi (Masoodpur, Kishangarh, Chhatarpur, etc.). Menon says that increase in land supply will ensure that more affordable and quality real estate is available in Delhi, and people wanting to buy homes in Delhi would not require to look elsewhere.

Land Pooling Policy is likely to revolutionize the real estate sector as land acquisition has become a costly, and politically sensitive issues with farmers opposing takeover of their farms by the government. The land has also become premium, and developers as such are going in for more vertical development in cities. Under the present land acquisition system, freehold and leasehold land requires consent of 70 to 80 per cent of land owners which is becoming a difficult proposition, Compensation upto 4 times the market value, and rehabilitation of original inhabitants also costs a packet these days. As a result of the rising costs, and complications in buying land, experts like Menoon say that land pooling will be the only option in coming days.

The first example of land pooling comes from Jamalpur area of Ahmedabad in Gujarat where the Bombay Town Planning Act 1915 was implemented which provided for town planning schemes (TPS). The TPS schemes allow planners to develop pooled land without acquiriing it as it involves a joint venture between development authority and land owners. In Ahmedabad alone 10,000 hectares of land has been developed under TPS over the years. With success in many cities in Gujarat and Maharashtra many south Indian states. In Hyderabad, the Metropolitan Development Authority has proposed land pooling on either side of the growth corridor on the outer ring road. If the land owners agree to collaborate, it could become a a pilot project for more such land pooling schemes in the city and the state. The DDA too has modified the land pooling policy withing the MPD 2021 under which 200 villages have been identified in outer Delhi where land pooling has been allowed. This will convert 90 villages into development areas whereas another 90 would be converted into urban villages. The Land Pooling policy, says Menon will open up the largest real estate opportunity `in the country as there is assurance from the state in terms of policy, and there is huge demand for housing in national capital.

Date: 3rd April 2014
Nancy Singh




Category : MPD-2021 News

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