Today, many buyers are in a dilemma as they don’t know whether they should buy now or wait. Is it the right time to buy in this region?
“The new land-pooling policy will release at least 40,000 acres of new land, most which will be in outer Delhi areas like Bawana, Najafgarh, and Narela,” Neeraj Bansal, partner and head (Real Estate and Construction) at KPMG in India, said.
This large-scale development is going to make Delhi a major property market in the NCR. Experts say that builders have already acquired around 20,000 acres in outer Delhi areas and they are now preparing development plans.
The policy also seeks to increase the role of private sector in urban infrastructure, especially in the development of land in Delhi.
“To promote affordable and inclusive housing, a 15% FAR, over and above the permissible FAR, has also been allowed for affordable housing. Out of the total 17 lakh dwelling units to be constructed, more than 5 lakh will be created for the Economically Weaker Sections (EWS),” a Delhi Development Authority official said.
The ministry of housing and urban affairs approved the Land-pooling Policy on October 11, 2018. Last month, the policy was approved by the DDA. Now DDA must get the land together and prepare the zonal and master plans at the earliest for timely development of infrastructure in the pooled land.
BIG OPPORTUNITY for buyers
The national capital is already reeling under acute housing shortage with a significant gap between demand and supply. As per the Master Plan of Delhi (MPD) 2021, the population of the city is projected to go up to 2.3 crore by 2021.
A group of land owners with small parcels of land will come together and give their pooled land to the DDA for development of basic infrastructure like roads, parks, power supply, sewage treatment plants, and other utilities. There are two categories:
1. Category I: Land owners with land parcel over 20 hectares
2. Category II: Land holding between 2 and 20 hectares Once the authority develops the requisite infrastructure on the land, the owners will get 60% and 48% of the pooled land for Category I and II, respectively. After getting their share of the pooled land, the owners can partner with private sector developers to come up with residential projects.
“DDA will draw the maps to divide the region into sectors as per the development plan. International norms are being followed for this large-scale development and DDA is going to monitor everything,” Ramesh Menon of Certes Realty, said.
Once the land is returned to the land owners, and developers, for construction of housing units, the developer will be allowed to avail FAR of 200 for construction. Owners will get the developed land within a 5km radius of the pooled land.
TIPS FOR BUYERS
Experts say that no legal housing project will come up unless the pooled land is returned to land owners and developers with approved zonal and master plans. People should only buy from established developers with everything mentioned on legal documents.
“Buyers should not speculate and buy. You are not even defined as consumers as per RERA and your interests are not protected if you buy now. Unless the plans are redrawn, buyers must refrain from committing their hard-earned money till there is a clarity on the landpooling scheme. However, if you are an institutionalised investor, this is the right time,” Menon says.
A project cannot be launched without the land parcels being identified as residential and duly approved under LLP with sanctioned plans and project registration with the recently implemented RERA.