More power to landown­ers

HT Estates - - HT­ES­TATES -

in­vest­ments. Un­der the scheme, it will get about 22% (12% land for af­ford­able hous­ing and 10% land for com­mu­nity ser­vices) of land free of cost both for af­ford­able hous­ing, in­fra­struc­ture and com­mu­nity ser­vices. It is a com­mer­cial method of solv­ing the chal­lenges as­so­ci­ated with the strin­gent land ac­qui­si­tion Act,” says Navin Ra­heja, chair­man, FICCI real es­tate and chair­man, ad­vi­sory coun­cil of Naredco.

Some changes have been made to den­sity norms too. Ear­lier the re­quire­ment was 850 to 900 per­sons per acre, con­sider- ing the fact that each fam­ily on an av­er­age had about five fam­ily mem­bers. As­sum­ing then that the den­sity was 850, the min­i­mum num­ber of flats that could come up in a project was 190, mostly 1BHK unit types. Now with the min­i­mum den­sity be­ing re­duced to 750, at least 150 units can be con­structed in a project, al­low­ing a de­vel­oper to build a mix of both 1BHK and 2BHK units de­pend­ing on the de­mand pat­tern in that area, say ex­perts. Also, un­der the new pol­icy, if a de­vel­oper owns 40 acres, the share he would have to sur­ren- der to the gov­ern­ment would work out to about 8.8 acres.

This is a prac­ti­cal pol­icy that is aimed at in­cen­tivis­ing landown­ers, to make them par­tic­i­pants in the de­vel­op­ment process. TDR is also linked to the mar­ket per­for­mance of real es­tate. It may com­mand a favourable value in ur­ban ar­eas, but not in ru­ral or semi ur­ban ar­eas, say ex­perts.

A TDR is akin to vir­tual real es­tate be­ing of­fered to farm­ers. The landowner in pos­ses­sion of a TDR cer­tifi­cate can sell the de­vel­op­ment rights to a builder. It can be traded in the open mar­ket pretty much like any other trans­fer­able ne­go­tiable in­stru­ment.

By re­duc­ing the size of the land par­cel to 25 acres un­der this pol­icy, the gov­ern­ment is hop­ing that even un­pro­duc­tive land can be utilised in the best pos­si­ble man­ner. Also, by en­sur­ing that de­vel­op­ers sur­ren­der 12% of the land to the gov­ern­ment for af­ford­able hous­ing, the gov­ern­ment prob­a­bly wants to con­trol the af­ford­able hous­ing stock in the state and over­see its de­vel­op­ment, add ex­perts.

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