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  • DDA’s Land Pooling Policy Approved, Sector welcomes the Move!

DDA’s Land Pooling Policy Approved, Sector welcomes the Move!

nikunj.j

ddaIn a major landmark move, the Ministry of Urban Development has approved the regulations for Land Pooling Policy in Delhi. This initiative is expected to pave way for the development of about 100 residential projects across the outer part of the capital.

So, what was the need?

At present, around 17 million people resides in the capital city. This number is expected to go up to 23 million by 2021. Thus, the Master Plan 2021 has envisaged an elaborate plan to build housing units for all Delhiites.

It is no hidden truth that DDA has not been able to acquire any land over the last 10 years, which called for such pooling policy. Now, about 20,000-25,000 acres of land will be unlocked through 95 villages and about 14-16 lakh units are expected to enter the market. The expected timeline for this would be about 10 years.

What’s new?

Five amendments have been made to the existing policy that were proposed by the Urban Development Ministry in consultation with the DDA. These were further approved by the Urban Development Minister, M Venkaiah Naidu.

These include:

1. Timely external development of necessary infrastructure by the DDA. Any delay in this will penalise DDA to pay 2 per cent of External Development Charges (EDC) per year for 2 years and 3 per cent EDC per year thereafter to the developer entities, i.e., farmers or land owners.

2. Enabling farmers in paying the development charges. In case, farmers are unable to pay the charges, they will be given the flexibility to give up a part of the returnable residential land. In such cases, they will get 35 per cent of the returnable residential land instead of 43 per cent.

3. Ensure mandatory housing for Economically Weaker Sections (EWS).

4. Transparency in allotment of returnable land.

5. Full utilisation of approved Floor Area Ratio (FAR).

Who gets the responsibilities?

The private sector will be responsible for assembling land, which will then be made available to the DDA for re-development.

As per the regulations, there are two categories of land pooling:

Category I: This includes land owners with land above 20 hectares. This category developers will be entitled to 60 per cent of the returnable land, while the remaining will be retained by the DDA.

Category II: This includes land owners with land between two and 20 hectares. This category developers will be entitled to 48 per cent of the returnable land, while the remaining will be retained by the DDA.

Experts Feel….

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.”

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.”

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.”

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.”

To know more on Land Pooling Policy, CLICK HERE.

Tags : DDA EWS floor area ratio Housing for All by 2022 Land Pooling Policy in Delhi property in ghaziabad Property in Greater Noida union urban development ministry

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