DELHI: In a developing culture, there is a need for land development, which focuses primarily on converting the pre-existing land into something useful. For example, for converting semi-natural estates, such as factories, into livable spaces, such as condominiums, changes in certain land reforms are needed.
One of the most powerful tools that a government has to mediate in land markets is land development. A government has two options for its involvement: it can either develop land itself or it can promote land development through the private sector. Experience has shown that direct government development of land has not been very effective. Long delays due to technical actions, poor quality of construction and lack of coordination between different agencies have been some of the reasons for the inefficiency of governments in land development. Delays in providing serviced land increase rather than decrease market distortions.
In a market economy, the government’s role should not be to provide goods and services but rather to enable or facilitate other actors, be they commercial or community-based, to be the providers. Government should reserve its intervention in regulating the market to ensure that it is competitive, sustainable and reasonable.
A land readjustment scheme is typically initiated by the municipal authority or the national government, designating an area which is about to be converted from agricultural to urban land use. A subdivision plan is developed for a unified planning of the area. Provision of infrastructure and services is financed by the sale of some of the plots within the area, often for commercial activities. The original landowners are provided plots within the reshaped area which, although smaller in size, now have access to infrastructure and services.
Coordination of land development policies between municipalities and country governments, urban growth boundaries and infilling urban land redevelopment, resource land tax deferrals and right-to-farm legislation are all management techniques designed to reduce land speculation and land conversion. While each state approaches land management issues differently as per their respective legislative standpoints, they are mostly responding with a commonality of purpose.
Thus, land-development is an imperative part of the real-estate and with land development, one can make beneficial use of the existing land.