More power to landowners
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.