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."