Delhi farmhouse owners bank on new rules to monetise surplus property
Nov 21, 2013
Source : The Economic Times


DELHI: After a change of construction rules in Delhi made provisions for smaller one-acre farmhouses, owners of large properties on the city's fringes are actively looking to unlock the value of their surplus land.

Earlier this year, the Delhi Development Authority (DDA) reduced the minimum area requirement for farmhouses to 1 acre from 2.5 acres earlier. The revised norm offers owners of an estimated 2,700 farmhouses in the city the opportunity to downsize and monetise their surplus property.

"Asset prices in these areas have appreciated significantly in the past decade and now offer an opportunity to unlock value," said Vishal Suneja, a businessman whose family owns a farmhouse on Bandh Road near Chhatarpur, where land prices have risen more than 200 times in a little over a decade. An acre of land in Chhatarpur that cost Rs 8-12 lakh in the 90s is now available for Rs 20-25 crore.

While farmhouses are springing up in newer areas within the city's limits, owners of farmhouses in older areas such as Chhatarpur, Satbari, Asola, West End Greens, Jaunapur, Ghitorni, Pushpanjali, Kapashera and Bijwasan have started engaging real estate developers and property brokers to ascertain the value of the land they are willing to let go.

This push to monetise surplus real estate has seen Delhi-based Uppal Group acquire land for farmhouses in areas like Chattarpur, Jaunapur and Kapashera, while other builders are offering schemes where they develop an existing property as per the new policy and hand over a portion of the farm along with some money to the owner.

Samyak Properties & Infrastructure is redeveloping a 10-acre farmland in the Bijwasan area under a development management pact with the landowners. On this land, there is potential to build 8-16 bungalows, according to the new policy.

"After the one-acre farmhouse policy was announced, people who have large holdings in these areas have smelt an opportunity. For many, it is also difficult to maintain such large farms," said Manish Uppal, managing director of Uppal Group.

Another developer, Sanjay Khanna, director of Kailash Nath Projects, is scouting for opportunities to collaborate with farm owners across the city. "Many of these owners have surplus land that they are looking at monetising. It could be because they need money to stabilise their business in these trying times or just to encash their valuable properties that were so far highly illiquid," he said.

Under the changed policy, new dwellings called Country Homes will be allowed on a one-acre plots. They will have a higher floor area ratio of 30 compared with to the earlier stipulated 15. This would mean close to 13,000 sq ft of space can be built on a one-acre plot, excluding the basement, but 50% of the area has to be left green. Arvind Mehtani, owner of SettlersIndia. com, a brokerage firm that has been dealing in farmhouses since 1998, said several of these farms were bought over the last 15-20 years and since then prices in these areas have multiplied.





Latest Realty News

Duped homebuyers still paying EMIs
Nov 20, 2013
NOIDA: For the last two years, homebuyers have been fighting a legal battle with little hope of finding reprieve and recovering their hard-earned money. Even as more than 300 buyers — who invested in Shiv Kala Charms housing project in Greater Noida — wait to get justice, they continue to pay lakhs towards EMIs towards home loans.
Builders' details to be uploaded on government websites
Nov 20, 2013
NOIDA: In a move that will aid buyers in choosing legally sound projects, the Noida, Greater Noida and Yamuna authorities are planning to upload details of all builders constructing housing projects on their official websites. The decision was taken after Uttar Pradesh chief minister Akhilesh Yadav directed the authorities to ensure protection for buyers and design a route to evade property-related cheatings.
Constructions flood Yamuna bed in Delhi
Nov 20, 2013
DELHI: Buildings are being constructed nonstop at Jaitpur Extension in absolute violation of Delhi Development Authority’s order to stop fresh property construction in Yamuna river zone.
Noida Extension: the real estate hot spot
Nov 20, 2013
DELHI: Noida Extension a 4,000-acre land chunk, with Ghaziabad, the Hindon River and a few sectors of Greater Noida around its boundaries, is today buzzing with activity as almost 75 real estate developers are ready with a slew of projects offering 1/2/3 BHK housing properties at affordable rates.
Part 1: Basics about mortgage of immovable property
Nov 20, 2013
DELHI: While all of us have heard about mortgage, little is known to a common man about it and its implications. Chapter IV of the Transfer of Property Act, 1882, defines various types of mortgages, rights and liabilities of mortgagor and mortgagee, its redemption and charges etc. There are at least six main mortgage types.
Part II: Basics about Mortgage of Immovable Property
Nov 20, 2013
DELHI: While all of us have heard about mortgage, little is known to a common about it and its implications. Chapter IV of the Transfer of Property Act, 1882, defines various types of mortgages, rights and liabilities of mortgagor and mortgagee, its redemption and charges etc.
Unitech sales bookings fall by 53% in H1 FY14 due to slowdown
Nov 19, 2013
DELHI: Realty major Unitech Ltd's sales bookings have dropped by 53% during first six months of this fiscal at Rs 717 crore due to slowdown in the property market.
Festival season bypasses real estate
Nov 19, 2013
MUMBAI: The real estate sector witnessing weak demand and burdened with oversupply in various pockets across the country looked up to the festive season this year to bring back some cheer. Dussehra and Diwali are behind us, and initial reports suggest that the season did not turn out as expected.
Despite slowdown, listed developers see signs of relief
Nov 19, 2013
DELHI: Despite a weak property market, most listed developers reported better cash collections and lower interest expenses in the September quarter, as they handed over several projects to customers and reduced or refinanced debt.
Noida Authority to allot 866 unused flats in December
Nov 18, 2013
DELHI: The Noida Authority is likely to launch its much-awaited scheme for allotting 866 flats in the first week of December. Officials said that as part of the scheme, there will be 41 flats for middle-income group (MIG), 47 for high-income group (HIG), 143 for low-income group (LIG), 150 for economic weaker sections (EWS) and 485 for Shramik Kunj categories. These flats are located in Sectors 67, 73, 93, 99, 100, 110, 122 and 135.

Latest Realty News Of State

Realty Talk's