Salient Features of Delhi’s Land Pooling Policy | Part 2

Posted on: October 31, 2016 at 12:44 pm, in

After discussing out on what and why of Delhi’s Land Pooling Policy and Country Homes / LDRA, we will move on to the next and the most important section of the policy’s R-zone, i.e., High Density development.

The Policy will be bringing all this land under one umbrella after converting it from its current Agricultural status to R-zone. This will comprise of High Density areas which should get to see high-rises and Low density residential areas also known as country homes.

In this section we will be discussing about the former one.

R-Zone: High Density Residential Area

The policy is based on a new concept of land aggregation against the traditional practice of land acquisition by the government(s) for undertaking large scale residential/commercial projects.

Under this, DDA will be undertaking urbanization of around 24,000 hectares of publicly owned land through land pooling to accommodate a population of around 50 Lakh in outer Delhi zones, namely, P-II, L, N etc.

Key Points: R-Zone – High Density – DDA’s Land pooling Policy

  • Anyone (Societies/Builders/Farmers) with over 2 hectares (5 acres) of land can participate in the Land Pooling and will be considered as Developer Entity (DE) by DDA. They will need to voluntarily contribute their land share to the common pool to be organized by DDA.
  • DDA will return consolidated land to the DE after retaining their share for infrastructure development. Developer Entity, pooling land over 2 Hectares (5 acres) and below 20 Ha (50 acres) will receive 48% land back from DDA. The ones contributing over 20 Ha (50 acres) will get 60% share. The consolidated land piece within the same zone will be returned within 5 km radius of the land holding.
  • While DDA will limit itself to external development, for which it might charge some External Development charges too, internal development will be planned and carried out by the DE.
  • DE will also be responsible for development of EWS units, for which it will receive additional FAR of 15%. They will need to pass half of the units to DDA at a pre-decided cost and they will be free to sell remaining 50% of them at market price.
  • DE will be expected to complete the construction for their land share within a stipulated period of time which will vary for the ones falling in under 50 acres bracket and the ones contributing over 50 acres to the land pool.
  • While DDA is expected to do time bound infrastructure development, such as, water supply, transportation, drainage, sewerage etc, DE will take care of internal roads, sewerage, rain water harvesting along with construction of units for their land share.

The policy aims at providing affordable housing to people and covers the huge gap between demand and supply

It is expected to deliver close to Seven hundred thousand of EWS flats for the poor and can help Delhi become slum free to a large extent.

Land Pooling Policy is expected to have an enormous impact on the residential as well as commercial real estate market in and around Delhi.

Though the Delhi govt has given a in-principle nod to the policy but once it puts its physical impression on it for approval, dream of millions of people to own a house in the capital’s upcoming smart cities will become a reality.

Salient Features of Delhi’s Land Pooling Policy | Part 1

Posted on: October 24, 2016 at 4:22 am, in

In our last post we explained what and why of the Land Pooling Policy. Today we will try to dig deeper into other salient features of the Delhi’s Land Pooling policy.

Under this Policy DDA will be undertaking urbanization of around 24,000 hectares of publicly owned land through land pooling to accommodate a population of around 50 Lakh in outer Delhi zones, namely, P-II, L, N etc.

DDA will be bringing all this land under one umbrella after converting it from its current Agricultural status to R-zone. This will comprise of High Density areas which should get to see high-rises and Low density residential areas also known as country homes.

In this section we will be discussing about the latter one.

LDRA : Low Density Residential Area

‘Country homes’ is an exciting concept for anyone willing to have a lavish space at an affordable price within the capital. 23 villages have been earmarked under LDRA development. Also, 47 villages falling under green belt will be a part of this group.

DDA introduced new norms for owning farm houses in the capital via S.O. No – 1190 (E), on 10th May, 2013.

Key Points on LDRA / Country Homes

  • Under the new norms mandatory requirement of minimum 2.5 acres has been reduced to 1 acre. This will make it easier for people on a budget to think of owning a farmhouse in the capital.
  • Floor Area Ratio has been increased for LDRA to allow more construction. While the FAR in Lutyen’s Delhi is 15, it is 30 in LDRA areas; out of which 20 (8712 sf ) is free. Upto three dwelling units are allowed per acre of land in areas falling under LDRA.
  • Currently prices are as low as 3-5 cr per acre in these zones while farmhouses in other areas of Delhi are way out of reach even for Delhi’s upper-middle class.

This will keep number of dwelling units in these areas in check and will make sure that the periphery of Delhi remains green & eco-friendly.

With all been said, there is just one more thing to add; Delhi is offering a limited opportunity to all to own a bungalow/farmhouse in the heart of the country.

In our next section/post, we will be discussing about the next feature of Land Pooling Policy, i.e., high density residential development.

Land Pooling Policy : A quick summary

Posted on: October 17, 2016 at 10:38 pm, in

The land-pooling policy was notified on 5 Sep, 2013; and regulations for its operationalization were approved by UD ministry in 2015. All we are waiting for is the declaration of 95 villages as urban.

Why Land Pooling?

Till now, Delhi had been at the mercy of DDA for the development of new housing units; or the city was being burdened by unauthorized construction by converting agricultural land into unauthorized colonies. DDA had never been capable of meeting the housing requirement of the capital and neither were they able to meet the construction standards been set by the builders. Besides, land acquisition is no longer a preferred mode for accumulating large chunks of land for bringing up of planned township. There have been several occasions where such projects had to face farmer agitations at some stage.

Yes, Land-Pooling is the answer we had been waiting for to meet the growing housing and infrastructural needs, and to turn the capital into the city of the future.

What is Land Pooling?

DDA’s land pooling policy envisages public-private partnership in land assembly and development in Delhi. Delhi’s Land-Pooling is a concept where small chunks of land, owned by group of owners, will be assembled for the development of infrastructure and smart sub-cities, as per the provisions of the Delhi Development Act 1957. After the development of land, DDA will redistribute the land after deducting some portion as compensation towards infrastructure costs.

Land owners, let they be farmers, societies, or builder groups, will be considered as Developer Entity (DE) by DDA. DE having 50 acres (20 Ha) or more land will get 60% land back while others having over 5 acres but less than 50 acres of land will get around 48% of land back from DDA. The remaining land would be used by DDA for infrastructure development per MPD 2021.

DDA in association with the govt will act as a facilitator with minimum intervention and will catalyze speedy, integrated planned development. Govt/DDA will have regulations in place for building standards , delivery time etc, but, will otherwise give a free hand to the Developer Entities on pricing etc.

Through this policy DDA will be able to develop the urban extension area, measuring roughly 24 thousand hectares. These areas will be self contained with all facilities and infrastructure.

Delhi Vs NCR: The most preferred choice for home seekers in and around Delhi.

Posted on: October 10, 2016 at 5:11 pm, in

Prospective buyers in and around Delhi have been struggling since a while with a very important question of whether they should invest in the NCR region or should wait for the Delhi’s Land Pooling policy to become operational. It has been all about the most preferred choice for home seekers in and around Delhi.

Since last few years, things have not been rosy for people who have somehow managed to pull in enough resources to buy some property in Delhi/NCR region. NCR region has been in a state of correction after witnessing India’s largest real-estate boom in the residential market. Builders are staring at a piled up inventory of unsold homes and that has led to dipping sales.

Economic slowdown has had an impact on all industries including real-estate sector. Then there had been other factors, such as delays which took a toll on the end user’s confidence. Per a survey done last year, construction for over 4 lakh flats was running over 2 years behind schedule. This has led Investors to go on their back foot causing a further setback and has acted as a roadblock in the pace of construction.

During the explosive early period when real-estate market in NCR was bullish, many builders passed reserves from one project into newer ones eyeing an exponential growth. This too led to the current financial crunch.

After witnessing the up’s and downs of the NCR real-estate market, Delhi is all set to join the bandwagon and should convincingly grab the spot for the most preferred/prominent real estate hub in North-India.

In the current offerings, sellers are refusing to lower their prices, and buyers are refusing to meet the asking prices for property. This has resulted in a standstill in the property transactions since the buyers are willing to wait further for the prices to become more affordable. Delhi’s Land Pooling Policy is for sure an answer to this deadlock which has all the ingredients for dwelling a true smart (sub) city right within the heart of the country and will offer smart homes to the smart buyers at affordable prices.

Though, the DDA’s ambitious land pooling policy for the capital has been in doldrums since its inception and has recently became victim of state-center apathy because of political-technical differences, will get to rise beyond expectations once it’s been through the current phase.

Stay in-tune for further updates on the Land Pooling policy which should soon step out of the paper on the real ground.

Demonstration held near Jantar Mantar to expedite Land Pooling.

Posted on: October 3, 2016 at 11:26 am, in

This Friday, on 30th September, Federation of Housing Societies and Developers under the banner of Delhi Dehat Vikas Munch, staged yet another demonstration, this time on Parliament Street, near Jantar Mantar to urge DDA, LG, State and Central government to find an early resolution to the stalled Land Pooling Policy.

The policy was notified in Sep, 2013; and the guidelines for operationalisation of it were approved by the Urban Development Ministry on May 26, 2015 with five amendments. Following which, the then DDA Vice-Chairman, Balvinder Kumar, had said, “The ball is in the Delhi government’s court”.

The actual implementation of the policy hinges on the state government’s decision on declaring 95 villages as development areas and 89 of them as urban villages. The housing authority had earlier requested to it to issue a notification in this regard.

Delhi govt had demanded 12-15% from the pooled land for carrying out development projects. DDA, on the other hand, after considering the Delhi govt’s demand, had found it infeasible to be met.

No visible signs of negotiations on this from either side forced farmers and other stakeholders to hold a protest. They tried to bring attention of all agencies and common man towards the bright side of the policy and how is it going to have a very positive impact on everyone’s life. Stating that, they urged all to have a look at the issue with a sense of urgency.

Land Pooling Policy is based on public-private partnership model and seeks to make landowners partners in the development of zones. It is divided into two categories: (I) for land measuring 50 acres and above; and (II) for 5 acres to less than 50 acres. In the first category, the developer entity will have around 60 percent share, while DDA will retain 40 percent. In the second category, DDA will retain 52 per cent while rest will go to developer entity.