Delhi’s L-Zone is the next Realty Hotspot in NCR

“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,’ says Vijay Gupta, CMD, Orris Infrastructures.

Due to the new land pooling policy, L-Zone emerged as the showstopper in NCR with maximum new launches in 2015. As per CommonFloor Real Insights, nearly 15,000 units were launched post the announcement of this policy. With several ambitious infra upgrades in the pipeline, L-Zone surely looks like a promising investment destination in the capital region in 2016.

Now, are you convinced enough to invest in L-Zone? If yes, let’s delve deeper and know more about this area.

So, what is L-Zone?

For meeting the growing housing needs in the capital city, the Delhi Development Authority (DDA) has divided Delhi into 15 zones, in which L-zone is the largest of all. Spread across 22,840 hectare of land, it is strategically nestled between Dwarka and Gurgaon, thus, boasts of swift accessibility to the IGI Airport. At present, Najafgarh is the only census town is this zone.

While the master plan is being worked out, several developers and housing societies are coming forward to buy land. Once the approvals are received, the land owners of L-Zone will submit the land to DDA, out of which the authority will take 40 per cent of the total land for roads, drainage, sewerage and other civic amenities development. Once developed, the developers/housing societies will be allowed to start their construction plans.

Delhi Might See Surge in Affordable Homes?

Arjunpreeet Singh Sahni, Executive Director, Solitairian Group says, ”we expect DDA’s land pooling policy will provide huge relief to the affordable home seekers in the national capital.”

Well, as per the industry experts, with land polling policy, about 20-25 lakh affordable units are expected to enter Delhi in next 6 to 7 years. Since this scheme is applicable only on five zones–J, K (I and II), L, N and P (I and II), it will be much easier for the DDA to extend physical infrastructure without any hassle of land acquisition. The biggest advantage of land pooling, so to speak, completely circumvents the need for land acquisition. Thus, project delays can be avoided considerably.

First mover advantage?

At present, L-Zone is in its nascent stages of development, thus one might be able to get the benefit of a first-comer. But treading with caution is highly advised. It is imperative to keep in mind that the land pooling policy is just notified and not yet operational. Thus, it will surely take some time for the developers to receive land from DDA for further development.

Note: Though the Urban Development Ministry has given its nod for the land pooling policy, several hurdles still remain. Thus, DDA has cautioned people not to invest money in these projects till the next announcement.