DDA's Master Plan 2021 to check realty prices in Noida, Gurgaon
Mar 29, 2014
Source : The Economic Times

 

DELHI: Hailing the 2021 Master Plan of Delhi Development Authority ( DDA) that envisage Land Pooling Scheme (LPS), the NCR developers have opined that it would help in checking the skyrocketing prices of housing units in Delhi as well as NCR. The industry insiders opined that these would be at least 15-20 percent cheaper as compared to the projected prices of the realty properties in next three to four years because it is aimed at hitting the demand-supply constraint both for developers and the end user.

Anshuman Magazine, CMD, CBRE, South Asia Private Limited said, "The Delhi Master Plan 2021 is arguably the largest real estate opportunity in terms of state assurance and demographic demand for urban growth and development in the country." He added, "The recently sanctioned Land Pooling Policy is perhaps the first of many such state initiatives. Such schemes 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-especially for the creation of urban green spaces, open public spaces and mass housing for EWS and low-income groups. There are as yet vast growth opportunities in the country's realty sector."

Under this plan, the owners will be allowed for the construction on the land on their own or through real estate developers. The Master Plan envisages development of several hundred acres of land for accommodating an additional population of 48 lakh by 2021, up from the current 1.6 crore. More homes and planned development would mean prices will come down. Importantly for the authority, this will be an alternative to the compulsory land acquisition and disposal process, he said. The new land acquisition bill that has been recently passed by the Parliament will make it difficult to acquire land.

Muzaffar Zia, director, Glorice Consultancy said, "The new policy will arrest the sharp rise in property prices in NCR areas such as Gurgaon, Noida and Ghaziabad." He said that prices of residential property on the Dwarka Expressway in Gurgaon, for instance, has seen a 150 percent increase in the last five years which is almost an overbought condition, if we talk about the economic viability of the affordable housing units in the region. Asked about the expected check on price appreciation of the affordable housing units in the region, Zia said, "It would depend upon the location but on an average, the prices would be 15-20 percent lesser if we compare the projected prices of the affordable housing units in the regions I mentioned earlier in next three to four years."

He said that lower prices would help developers to reach maximum number of end users as price rise check would discourage the investors in the real estate market.

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."

Asked about LPS effect on the NCR real estate market, spokesperson of the Amrapali Group said, "Today, biggest hurdle for the developers is the land acquisition. Since, the land pooling would make it easier for the developers; it would influence the NCR land-owners to follow the suite. Hence, we 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."

 

 

 

 

Latest Realty News

Plea to make Delhi roads friendly for the physically-challenged
Mar 29, 2014
DELHI: The Delhi High Court on Wednesday issued notices the Delhi Government, the New Delhi Municipal Council, the three Municipal Corporations of Delhi, the Delhi Police and the Delhi Development Authority on a public interest litigation seeking directions to make the Capital’s roads friendly for the visually and hearing-impaired pedestrians.
India-China to collaborate on building semi-high speed rail
Mar 29, 2014
DELHI: India and China would look at collaborations in semi-high speed rail and building world-class railway stations. This was decided at the strategic and economic dialogue between the two countries earlier this month when an Indian delegation, headed by Planning Commission deputy chairman Montek Singh Ahluwalia, had visited Beijing.
‘DDA granted undue benefits to Kathputli Colony redeveloper’
Mar 29, 2014
DELHI: The Aam Aadmi Party on Wednesday charged the Delhi Development Authority with giving “undue benefits” to the Raheja Developers while granting it a contract in 2011 to redevelop the Kathputli Colony near Shadipur bus depot on public-private partnership basis.
Demand for houses declines in third quarter
Mar 29, 2014
DELHI: The slowdown in economy coupled with rise in interest rates and uncertain job prospects has hit the demand for real estate. In the third quarter of 2013-14, sales volumes declined 43 per cent to 11.8 million sq ft from 21.9 million sq. ft in the same period last year, says a study by Knight Frank. Despite this, study says, the annual rise in prices of residential units in the last eight quarters is around 10 per cent.
Report: Sales volume of listed real estate cos plunges 43%
Mar 28, 2014
PUNE: A research report by property consultants Knight Frank India has found that the volumes of 25 listed real estate companies over the past eight quarters has dropped from 21.85 million sq ft to 11.8 m sq ft, representing a decline of almost 43 per cent.
Election cash call puts strain on construction, real estate
Mar 28, 2014
DELHI: As India's mammoth general election approaches, jackhammer drills are quietening down at construction sites and earthmovers and cranes remain parked.
Demand for houses declines in Q3
Mar 28, 2014
DELHI: The slowdown in economy coupled with rise in interest rates and uncertain job prospects has hit the demand for real estate. In the third quarter of 2013-14, sales volumes declined 43% to 11.8 million sq ft from 21.9 million sq. ft in the same period last year, says a study by Knight Frank. Despite this, study says, the annual rise in prices of residential units in the last eight quarters is around 10%.
How to make home purchase stress free
Mar 28, 2014
DELHI: What are some of the most difficult and emotionally stressful experiences in any person’s life? We can easily list the top four: The death of a loved one, breakdown of a marriage, change of jobs and buying a home. Does the last point really belong to this list? Actually, it does.
Noida realty market sees high supply: JLL
Mar 28, 2014
DELHI: Hyman Minsky, the noted American economist, linked an economy’s life cycle with speculative investment bubbles which are endogenous to it. He stated that during prosperous times when the economy booms, corporate cash flows rise higher than corporate debts, and this leads to speculative euphoria.
Realty demand to grow post elections: Colliers
Mar 28, 2014
DELHI: Colliers International, the leading real estate services company, has released its India Residential Overview and Forecast Report.

Latest Realty News Of State

Realty Talk's