DDA’s Master Plan 2021 Impact on Realty Prices in Delhi NCR

News and Updates | By Rajkumar

The Land Pooling Scheme under the 2021 master plan of Delhi Development Authority (DDA) will help in checking the high appreciation in the prices of housing units in Delhi NCR, According to the NCR developers. The Land Pooling Scheme aims to prevent selling of land without the owner’s consent and assures fundamental changes in the way of acquisition and development of land in Delhi.

The industry experts expect that the rates of housing units will be at least 15-20% less in the coming 3-4 years as compared to the projected prices. And, all this is because it is aimed at hitting the demand-supply constraint for both developers and the consumers.

According to Anshuman Magazine, CMD of CBRE, Delhi Master Plan 2021 presents the largest real estate opportunity in terms of state assurance and demographic demand for urban growth and development in the country. According to him, the Land Pooling Policy which was approved on 5th of September 2013 will help in solving issues related to the availability of land for necessary real estate development and infrastructure formation for India’s ever-increasing urban population. The scheme will help in creation of urban green spaces, open public spaces and mass housing for EWS and low-income groups. There are vast opportunities waiting for both developers and investors in the country’s realty sector.

Under this plan, the land owners will be allowed to construct home on their land by their own or through any developer. The Master Plan Development Plan proposes the development of several hundred acres of land for accommodating an additional population of 48 lakh by 2021, up from the current 1.6 Crore. The increasing development will definitely help in reducing the prices of housing units. Importantly for the authority, this will be an alternative to the compulsory land acquisition and disposal process, he said. However, the new land acquisition bill will make it difficult for the developers to acquire land but the DDA sees the master plan as the alternative to the compulsory land acquisition and disposal process.

Muzaffar Zia, director, Glorice Consultancy also said that “the prices of upcoming residential units in Delhi NCR would depend upon the location but on an average, these would be 15-20 percent lesser compared to the projected prices of the affordable housing units in the NCR regions”

According to him, the lower prices of housing units will help developers to reach maximum number of consumers or the end users and the price rise check would discourage the investors in the real estate market.

When asked about the empirical percentage of the investors existing in the current market scenario in NCR Zia said, “It is difficult to give exact data but on an average, such investors exist to the tune of around 35-40 percent in first two years of the project launch but wash their hands off from the choked units, as the possession period reaches closer because in general, they get around 50-60 percent return on their investment.”

According to a spokesperson of the Amrapali Group, today’s biggest hurdle for real estate developers is the land acquisition but the land pooling scheme will make it easier for the developers and influence the NCR land owners to follow the suite. Developers are expecting things to become easier as it takes around one to one and half years in completing the formalities of land acquisition and related clearances.”

He said that the time consuming clearing system enhances the cost of property not the developers. But, after the real estate developers can plan and implement the projects in a better way once the land acquisition process becomes smooth and hence the prices of property will come down. Since, the master plan 2021 will keep a check on the real estate properties in Delhi; it would also have its impact in the NCR cities including Noida, Gurgaon and other NCR regions.

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