Three main policies under Master Plan Delhi 2021
In November last year, the Delhi Development Authority (DDA) passed the farmhouses/country homes policy. One part of the policy deals with regularising the existing farmhouses. These farmhouses, usually of size 2.5 acre and above, are in the range of R15 to R20 crore per acre. These are located in zone J under the Master Plan 2021 that consists of areas such as Neb Sarai, Mehrauli, Satbari and Chhattarpur — primarily land between NH8 and NH2, right from Rajokri and Chattarpur.
The existing villages that already have farmhouses would be developed as low density residential areas of which the existing farmhouses would be regularised as country homes subject to the norms under the revised country homes policy.
This zone has approximately 447 hectares or 5000 farmhouses. Farmhouses existing before February 7, 2007, will be legalised after payment of a penalty. There is a move by the South Delhi Municipal Corporation to regularise farmhouses by charging their owners up to R5 crore.
However, the aspiring purchasers are suitably advised to exercise caution while purchasing land which is either governed by the stipulation imposed by the authority arising from the Supreme Court order or the land that falls under the regional park etc.
The second part of the farmhouses/country homes policy has to do with new licenses that will be given in the green belt, under the country homes policy. These will have a higher FAR of 15 to 20 and will allow for builtup space of 6000 sq ft to 8500 sq ft and will come up along approximately 11,000 hectares. The website Delhi Farms estimates a potential for approximately 25,000 dwelling units along this green belt, ranging in size from 4000 to 8500 sq ft, depending on the location and the plot.
These land parcels are located in zone N and zone L of the new Master Plan, primarily virgin land parcels. Zone N comprises 19 villages, out of which 10 acres come in the green belt spread over an area of 4305 hectares. These include areas such as Jounti, Nizampur and Qutubgarh. As many as 6000 to 7000 farmhouses can come up in this zone alone. The price of these parcels is around R1.5 to R2 crore per acre. The area is likely to attract the trader community from west and north Delhi, say experts.
Zone L consists of 58 villages, out of which 21 are under the green belt spread over an area of 10322 hectares. Some of the villages in this zone include Ghumenhera, Kanganheri and Jhatikara. The cost of these farmhouses ranges from R2 crore to R4 crore per acre. This area may prove to be an attractive investment destination for the spillover investor audience from south Delhi. Around 3000 to 4000 farmhouses can be accommodated in this area.
What will be its impact?
The one-acre farmhouses in existing zone J or the country homes that may come up in zones N and L under Master Plan 2021, will largely impact the south Delhi builder floor market instead of the flourishing villa market in Delhi NCR.
The new farmhouses/country homes policy will allow for larger homes (4000 to 8000 sq ft apartments as against 1100 sq ft units) to be built within the city limits. This is expected to attract investors who earlier bought apartments in posh Delhi colonies such as Vasant Vihar or West End to go for farmhouses close to the city instead of villas in distant locations. While a builder floor in Delhi costs anything between R5 crore and R30 crore, a one-acre farmhouse will cost anything from R10 crore to R50 crore per acre.
What is its status?
Notification is already in the public domain for objections and is likely to become a law within the first quarter.