De­cod­ing the im­pact of the land pool­ing pol­icy in Delhi

RE­AL­ITY BITES Ex­perts look at the im­pact of the pol­icy on prop­erty prices, and also its im­pact on the ur­ban land­scape

HT Estates - - FRONT PAGE - Ash­wini Ku­mar Sharma feed­back@hin­dus­tan­times.com n

An up­date in the Land Pool­ing Pol­icy( L PP) and the no­ti­fi­ca­tion al­lows 89 vil­lage sin Delhi to be­come ur­ban ar­eas. This is ex­pected to in­crease the sup­ply of res­i­den­tial space. Weaskex­perts about the im­pact this may have on prop­erty prices.

“Land pool­ing is the need of the hour for Delhi. The city’s ur­ban land­scape was not in­creas­ing pro­por­tion­ately to ac­com­mo­date its ever-in­creas­ing pop­u­la­tion. To ad­dress the woes of ur­ban hous­ing, more area is re­quired for ur­ban plan­ning and us­age. Delhi gov­ern­ment’ s re­cent dec­la­ra­tion will help in tak­ing the Delhi Devel­op­ment Au­thor­ity’s (DDA) ur­banLPP­for­ward. While ac­quir­ing land for ur­ban devel­op­ment has be­come a con­tentious is­sue with the im­ple­men­ta­tion of the Land Ac­qui­si­tion, Re­ha­bil­i­ta­tion and Re­set­tle­ment Act, the state gov­ern­ment’ s nod isa win­win sit­u­a­tion for landown­ers and the au­thor­ity. Ex­perts be­lieve that about 40,000 acres will be opened up for planned devel­op­ment, mak­ing way for con­struc­tion of nearly 2.5 mil­lion hous­ing units in Delhi,” said Sud­hir Pai, chief ex­ec­u­tive of­fi­cer, Mag­icbricks.

“About40,000 acres is the to­tal size of Noida; so one can imag­ine the num­ber of res­i­den­tial units this much area would ac­com­mo­date. This would also lead to cor­rec­tion in realty prices in the NCR. The im­ple­men­ta­tion of the pol­icy is sig­nif­i­cant as DDA’s Master Plan Delhi 2021 pro­poses the con­struc­tion of 2.5 mil­lion hous­ing units by 2021, for which 10,000 hectares of land is re­quired. How­ever, con­vert­ing vil­lage ar­eas into planned ur­ban spa­ces is a huge task for the au­thor­i­ties. The key to suc­cess will be good co­or­di­na­tion be­tween DDA, land own­ers and pri­vate de­vel­op­ers.”

“The re­booted LPP­can po­ten­tially pro­vide a so­lu­tion to the prob­lems the nodal body faces with re­gards to ac­quir­ing prime landinthecity. The big­gest is­sues have been frag­mented land­hold­ings and the steep com­pen­sa­tion to orig­i­nal landown­ers as a re­sult of in­creased land val­u­a­tions. It can boost the avail­abil­ity of res­i­den­tial projects in the city, where ase­vere hous­ing­short­age ex­ists. The pol­icy can re­sult in greater pri­vate par­tic­i­pa­tion in the cre­ation of housinginthecity,” added Ramesh Nair, chief ex­ec­u­tive of­fi­cer & coun­try­head, JLLIn­dia. “It can po­ten­tially un­lock land across Delhi to the tune of about 20,000- 25,000 hectares. The de­ploy­ment can also help in keep­ing res­i­den­tial prices un­der con­trol. We are look­ing at a pos­si­ble re­vamp of the dy­nam­ics gov­ern­ing NCR’s res­i­den­tial mar­ket, with an am­pli­fi­ca­tion of af­ford­able hous­ing sup­ply. Perti­nently, it should be kept in mind that while RE RA( Real Es­tate( Reg­u­la­tion and Devel­op­ment) Act ,2016) has been no­ti­fied for NCT of Delhi, home­buy­ers need to be aware that res­i­den­tial projects are not cleared for launch un­less the de­vel­oper has ob­tained all ap­provals and reg­is­tered the project un­der RERA. LPP in­volves land be­ing sur­ren­dered and new land al­lot­ments be­ing made, and de­vel­op­ers can only ap­ply for project ap­provals af­ter this. There­fore, the city’s home­buy­ers should be cir­cum­spect about sign­ing up for a project by the pri­vate de­vel­op­ers.”

Ac­cord­ing to K. Ravichan­dran, se­nior vice-pres­i­dent and group head, cor­po­rate rat­ings, I CR A :“The oper­a­tional is at ion of Delhi’s LPPwill­re­sult in un­lock­ing of around 55,000 hectares of land. The de­ci­sion au­gurs well for peo­ple look­ing for hous­ing. Land pool­ing of­fers an op­por­tu­nity to the landown­ers to de­posit their smaller chunks of land in a cen­tral pool to make a big­ger and more in­te­grated land par­cel. Withthis, af­ford­able hous­ing­will get a fil­lip in the com­ing decade and­will ra­tio­nal­ize prices of real es­tate as well as rentals. With an es­ti­mated 59,835-73,750 hectares in built-up area to be de­vel­oped, the land pool­ing will re­sult in in­creased hous­ing stock. The pol­icy should re­sult in sup­ply of around 9 mil­lion dwellings, in­clud­ing for eco­nom­i­cally weaker sec­tions. NCR’s real es­tate mar­ket is re­plete with dis­sat­is­fied landown­ers. Through this pol­icy, the ap­proach be­ing adopted is of par­tic­i­pa­tive devel­op­ment. A share of the pooled land would be given back to the orig­i­nal landown­ers, who will de­velop it for var­i­ous des­ig­nated ur­ban uses. Thus the ma­jor road­block in devel­op­ment of land via lan­dac­qui­si­tion—fair com­pen­sa­tion—is likely to be eq­ui­tably ad­dressed as peo­ple par­take in the devel­op­ment pro­cess. The pol­icy is likely to have a pos­i­tive im­pact in the form of in­crease in hous­ing stock, par­tic­i­pa­tive devel­op­ment of landown­ers, ra­tio­nal­iza­tion in prices and rentals and over­all pickup in in­vest­ment and eco­nomic ac­tiv­ity in the sec­tor.”

“Delhi NCR is to­day a sprawl­ing city with vast swathe­sof land not ur­banised. Land pool­ing is there­fore sound ur­ban plan­ning that should lead to a dense core and a more com­pact re­gion. It will even­tu­ally lead to cre­ation of hous­ing stock( in­clud­ing af­ford­able hous­ing) to ac­com­mo­date city’s in­creas­ing pop­u­la­tion. It will also cre­ate sup­ply­ofmil­lions of square feet of com­mer­cial space. How­ever it is too early to an­a­lyse its im­pact onother­parts of the NCR. Also, be­ingdis­persed across the city, each zone will have its own dy­nam­ics,” said Amit Oberoi, na­tional di­rec­tor, knowl­edge sys­tems, Col­liers In­ter­na­tional In­dia.

“The mag­ni­tude of this pro­posed devel­op­ment is mostly not ap­pre­ci­ated. Theareaun­derthis devel­op­ment will be larger than the three new cities de­vel­oped post-in de pen den ce,i.e.Gandh in­a­gar, Chandi­garh andBhu baneswar .”

T tis there­fore crit­i­cal to have a ro­bust plan for cre­at­ing a holis­tic master plan for a mod­ern megac­ity. Many of the tasks that DDA needs to un­der­take are se­quen­tial in na­ture, from col­lec­tion of land from pro­mot­ers, to un­der­tak­ing the le­gal due dili­gence, sur­vey of the land, iden­ti­fy­ing pock­ets not ag­gre­gated, master plan­ning the area, seek­ing opinion from all stake­hold­ers on the plan, re­dis­tribut­ing the devel­op­ment to the pro­moter sand lay­ing out the in­fra­struc­ture. DDA will need to ad­e­quately staff it­self and we rec­om­mend, it act as a plan­ning and over­sight agency for smooth im­ple­men­ta­tion.

MINT/FILE

Af­ford­able hous­ing will get a fil­lip in the com­ing decade and will ra­tio­nalise prices of real es­tate as well as rentals, ex­perts said

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