DDA land pooling plan gets Approved
The Urban Development Ministry has approved the land pooling policy in Delhi, with five amendments. This approval will pave the path for the development of nearly 100 residential projects in the outer part of the capital. The amendments aim at ensuring timely completion of real estate projects with all necessary infrastructures. It is estimated that the plan will be operationalized in about two months. The amendments include penalty on DDA and the appointed developer in for not meeting stated deadline, helping affected farmers getting development charges, mandatory housing for the economically weaker sections (EWS), transparency in allotment and full utilization of approved floor area ratio (FAR).
The DDA will undertake urbanization of around 20,000 hectares of land which will be assembled by the private sector however DDA will be responsible for its redevelopment. It is expected that around 14-16 lakh units will be built on outskirts of Delhi. The policy of land pooling will enable land owners to pool their land for infrastructural development by the DDA. However, the farmers will get 43% to 60% of the land back instead of compensation after development of infrastructure. This land they can either develop themselves or give to private developers.
In case of any delay in completion of the development, the DDA shall bear a penalty of 2% of External Development Charges (EDC) each year for the first two years and 3% of EDC in the successive years to the Developer Entities (DE). Farmers who wish to participate in land pooling but want the EDC to be waived off can surrender 8% of their alternative plots. The government shall allow 15% extra FAR (floor-area ratio) for construction of homes for the EWS, and DDA shall buy half of them at a predetermined rate. The DDA shall organize a computerized system for prioritizing applications and allocation of plots of returnable land to ensure transparency.
MakaanIQ brings forward developers reaction on land pooling policy:
Mr R.K Arora, Chairman Supertech Ltd, "The Land Pooling Policy for Delhi notified by the Union Urban Development Ministry is seen a step forward in the direction of Providing Housing for All by 2022 .This policy will help making available more land for housing, thereby bringing down the exorbitantly higher land price prevailing in Delhi. It will also provide land for Affordable & low budget housing, giving relief to the acute housing shortage in Delhi. Since most of the land coming under this policy is in remote areas where infrastructure development will take time, the results of the policy cannot be expected in short term."
Mr. Gaurav Gupta, Spokesperson, CREDAI Raj Nagar Extension, "The step by DDA is a welcome step as it will bring in more homes in Delhi and will further the development required in the Capital. If done as planned it will open up an option for the developers eagerly waiting to dole out houses in Delhi and buyers will also lap up the opportunity as they will get the desired house in one of the most preferred city. It will bring fresh housing supply in Delhi which was clogged due to very limited supply by DDA ".
Mr. Prashant Tiwari, Chairman, Prateek Group, "Option of having a house within the city is now open to buyers. As developers we would be eagerly waiting for the policy to take shape and turn out the way it is planned. The effects on the real estate market of Delhi will be very clearly visible once this activity starts".
Mr. Sanjay Rastogi, Director, Saviour Builder Pvt. Ltd., "We welcome the much-awaited step by DDA and it will rewrite the real estate scenario in Delhi. Let us wait for the timely implementation of the policy to get the desired results. A gush of fresh supply is expected to hit the property market of Delhi in coming years. With more supply coming in, property prices will definitely come down in National Capital. But whether or not this will have an impact on property rates of other NCR region like Greater Noida, Ghaziabad & Noida is difficult to tell".
Mr.Manish Agarwal,MD,Satya Group “We welcome the Urban Development Ministry’s approval of DDA’s ambitious land pooling policy that is targeted to provide a roof over every head in the national capital. In line with the central government’s commitment of providing ‘Housing For All’, it’s a highly commendable step in the right direction. DDA’s land pooling policy has also paved the way for sustainable infrastructure development in the national capital.”
Mr .Vijay Gupta, CMD, Orris Infrastructures , "DDA’s land pooling policy is the perfect answer to the burgeoning housing demand in the national capital. With the approval of this policy, the national capital is here to witness mega housing projects to be developed over the vast tract of land that is expected to be unlocked for housing and infrastructure development through land pooling.
Mr. Arjunpreeet Singh Sahni, Executive Director, Solitairian Group, “We expect DDA’s land pooling policy will provide huge relief to the affordable home seekers in the national capital. The highly innovative policy is a win-win for both the buyers as well as the farmers."