DELHI: Land prices in Gurgaon and Noida could fall as over 70,000 acre is likely to come in the Delhi market because of DDA's new land pooling policy, property consultant CBRE said today.
"The land pooling policy will prove to be positive for the National Capital Region (NCR) in the long-term, since land prices in the suburban markets of Gurgaon and Noida would eventually rationalise with fresh supply coming into the Delhi market," CBRE South Asia Chairman and Managing Director Anshuman Magazine said in a statement.
According to the Delhi Development Authority's (DDA's) recently passed land pooling policy, private developers may directly acquire land from farmers/landowners willing to participate in the land pooling scheme (LPS), where they will get back 40-60 per cent of the developed land, instead of any compensation.
DDA would develop the necessary support infrastructure and mass/EWS housing projects on the land, while developers will receive a large portion of the same for further real estate development.
The consultant highlighted that DDA has identified about 200 villages along the outskirts of Delhi for this scheme. It intends to convert around 90 villages into 'development areas' and about another 90 into 'urban villages'.
"All such identified village areas are together likely to free up more than 70,000 acres of developable land in the NCR," CBRE said.
Magazine noted that certain peripheral locations of Delhi with large land parcels have bee witnessing price rises to the tune of two to three times over the course of about six quarters.
These locations are land parcel along the NH-1, North Delhi (Akbarpur, Mazra), North-West Delhi (Rohini, Narela), West Delhi (Najafgarh, Dwarka) and areas of South Delhi (Masoodpur, Kishangarh, Chhatarpur etc.)
"Experts believe this to be a short-term trend, however, which is likely to rationalise once more supply of developable land comes into the realty market," he added.
Land acquisition is a contentious subject in India, Magazine said, adding that land pooling schemes will help solve issues related to the availability of land for necessary real estate development and infrastructure formation for the country's ever-increasing urban population.