Ex­clu­sion of posh zones won’t rob Lu­tyens Delhi of ex­clu­sive tag

The Delhi Ur­ban Art Com­mis­sion’s rec­om­men­da­tionon to shrink the Lu­tyens Bun­ga­low Zone and ex­clude e eight ar­eas is not likely to af­fect the hous­ing mar­ket et

HT Estates - - FRONT PAGE - Van­dana Ram­nani

The rec­om­men­da­tions of the Delhi Ur­ban Ar t s Com­mis­sion ( DUAC) to ex­clude eight pre­mium res­i­den­tial ar­eas in Delhi from the Lu­tyens Bun­ga­low Zone (LBZ) is not likely to af­fect the real es­tate mar­ket. Ex­clu­sion of Golf Links, Jor Bagh, Sun­der Na­gar, Chanakya­puri, Panchsheel Marg, Sar­dar Pa­tel Marg, Ashoka Road and Ben­gali Mar­ket from the zone will nei­ther cre­ate a huge hous­ing sup­ply nor lead to price ap­pre­ci­a­tion, say real es­tate ex­perts.

There are cur­rently only about 400 to 500 homes in the ar­eas that have been ex­cluded. Out of this only 30% (around 100 to 120 units) can be re­de­vel­oped pro­vided the own­ers con­struct more floors once the new norms kick in. Thus, the new hous­ing stock cre­ated will be very small.

Also, the biggest chal­lenge in th­ese ar­eas is that ma­jor­ity of own­er­ships are in­her­ited and there are very few ‘sorted ti­tles’ Hence, one is not likely to see too much sup­ply com­ing in at one go.

Ac­cord­ing to DUAC chair­man P S N Rao, “As of now only the draft re­port is ready. Noth­ing has been fi­nalised. It will take an­other two months. The sup­ply that will be cre­ated in th­ese ar­eas is im­ma­te­rial as th­ese are scat­tered in dif­fer­ent parts of the city and, there­fore, will not have a ma­jor im­pact on in­fra­struc­ture or the sky­line. Also, not much hous­ing stock will be cre­ated as not ev­ery­body would want to add houses or build new units.”

Snip­ping off 5.13 sq km from the LBZ, how­ever, will make fresh de­vel­op­ment pos­si­ble in th­ese ar­eas. “Build­ing rules that are ap­pli­ca­ble in other ar­eas of Delhi will also ap­ply here. Guide­lines as per the Delhi Master Plan 2021 and the Delhi Build­ing Bylaws 1983 will not be ap­pli­ca­ble. Since th­ese ar­eas will still have the lo­ca­tional ad­van­tage of be­ing close to the seat of power, they will con­tinue to com­mand a pre­mium. How­ever, cap­i­tal val­ues will now be within the reach for many more in­di­vid­u­als, de­pend­ing on the num­ber of units that will come up,” says Sa­man­tak Das, chief econ­o­mist and na­tional director re­search, Knight Frank (In­dia) Pvt Ltd.

New sup­ply of apart­ments is ex­pected to come up only after the spec­i­fied ar­eas are of­fi­cially de-no­ti­fied from the LBZ and will hap­pen only if the owner of a bun­ga­low or villa wants to opt for re­de­vel­op­ment. Though new hous­ing units are likely to be more af­ford­able than the cur­rent prop­er­ties in th­ese ar­eas, they will cer­tainly not be cheap. If the pre­vail­ing cap­i­tal val­ues are any in­di­ca­tion, a new unit is likely to be priced in ex­cess of ₹ 15 crore.

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