4 to 6 acres land in village Raghopur for farmhouse. Can be scaled further.
Abundant ground water
Excellent farhouse for sale in Kapashera Estate,
1700 Sq.yds, ideal for Mini Farmhouse,
500 mtr off NH-8, excellent location,
1 Acre approved Farmhouse in Pushpanjali. 4 Bedrooms, 3500 Sq.ft built-up
- Swimming pool
- Nice landscape garden
- Covered car parking for 3 cars
- Servant quarter
-Genset for Power backup
- Demand 65 Cr
There is no dearth of buyers for farmhouses even though prices jumped sharply after the extension of amnesty to those with unauthorised construction
Farmhouse owners in Delhi would have been overjoyed when the Parliament recently passed the National Capital of Delhi Laws (Special Provisions), Second Bill 2011, Provisions), Second Bill 2011, to make special provisions for the city for a further three years beginning January 1 this year. This extends the earlier act that was valid till last December. In simple terms, the new act extends by three years the amnesty provided by the previous one to farmhouse owners who faced action for unauthorised construction on their land and against acquisition of their farmhouses under any earlier notification.
According to a survey conducted by the Municipal Corporation of Delhi (MCD) a few years ago, there were 2800 farmhouses on about 7500 acres of land in the city. By last year, there were an estimated 3000-plus farmhouses spread over 10,000 acres of land. In the past two decades, the authorities notified about 5000 acres of land for acquisition in 13 villages. The farmhouses that were on the notified land stood to be affected.
The proposed acquisition matter was challenged in court. In 2009, the court held that the land could be acquired. There was much protest against the move for acquisition following which the government provided protection to the farmhouses with the rider that nothing was to change till the Delhi Development Authority (DDA) formulated a proper policy in consultation with the stakeholders. The deadline for this was December-end. The recent act extends this by three years.
Farmhouse owners were delighted last year when the government had tried to usher in a farmhouse policy that provided for regularisation of all farmhouses including those with unauthorised construction or those on notified land.
The then draft policy allowed farmhouses a built up area of 30% against the earlier 1% limitation. The greatest bounty that the draft provided was permission for farmhouses of specified sizes to have fitness centres, non-invasive health and naturopath clinics, amusement parks and resorts, among other things.
However, the draft was emphatically shot down by non-official members of the DDA comprising MLAs and municipal councilors from the Congress and the BJP. The members labelled and decried the draft as a shocking move for the benefit of farmhouse owners, many of whom are the rich and powerful.
As the draft was then seemingly shelved and a farmhouse policy is awaited, the government's extension of amnesty for another three years did spell relief to the farmhouse owners in as much as that at least no action would be taken against unauthorised construction and that no land will be acquired.
Not all the non-official members of the DDA though are impressed by the extension of the amnesty. One of the nonofficial members, BJP MLA Harsh Vardhan, who is also former BJP Delhi president, said that the government ought to have framed a clear policy. Why just postpone a decision and keep the sword hanging on those affected?
The government needs to factor in the requirements for implementing the Master Plan and pave the way to build necessary infrastructure even if it means acquiring land for roads and other public benefit projects, he said.
Another non-official member, Congress MLA Subhash Chopra, who is also former Delhi Pradesh Congress Committee president, said the basic priority are the poorer sections, so the authorities should formulate schemes that would benefit them. The government should not drag its feet in formulating policies, he said.
Meanwhile, the price of farmhouses and farmhouse land has risen to unexpected heights. This is especially so in the wake of the recently passed bill that extends the amnesty period. Farmhouse owners who faced the prospect of action against unauthorised construction in their properties or possible acquisition were the ones who most benefited.
Since this also lifted the cloud of uncertainity on the fate of such properties, the prices appreciated enormously. A real estate agent Sandeep Chaudhury of Sagar Properties says that the price of farmhouses and farmland has grown three times what it was even six months ago. In West End Green in Rajokri, a two-and-half acre farmhouse could cost around R100 crore, he cited an example.
Interestingly even though prices have sharply climbed, there are no dearth of buyers.
A factor that has added to the upswing in prices is the low availability of farmhouse properties on sale. Real estate agents attribute two reasons for this pattern. One, farmhouses are owned by the super rich who do not really need the money. Second, those farmhouse owners who want to make a profit by selling their properties are awaiting the implementation of the Master Plans's provision that permits a farmhouse on one acre of land. Till now farmhouses are only permissible on a minimum of two-and-half acres.
Once it becomes legal to have farmhouses on a smaller piece of land, many owners might want to carve out one-acre plots out of their farmhouse land and sell them separately and make much more money.
So, the farmhouses enjoy a charmed position in the list of the most prime real estate holdings.
Source: HT Estates
The L Zone could be an attractive investment hotspot, but putting in infrastructure could be a big challenge, says Vandana Ramnani<br><br>They see it as a gold mine. Investors and buyers desperate to buy plotted units in posh south Delhi localities, which come for about R15crore to R20crore per acre, are now looking for alternative and very attractive options in Zone L (in south west Delhi, close to Dwarka and New Gurgaon) after the policy on farmhouses/country homes was passed recently by the Delhi Development Authority (DDA). Yet to be notified, it allows for construction of country homes on a minimum plot area of one acre as against farmhouses, which can be built currently on 2.5 acres. As of now, land in this area, which is as close to south Delhi as you can get, costs about R1.25 crore to R5crore per acre. <br><br> While private developers active in Gurgaon have bought land parcels of around 100 acres in the urbanised areas, investors so far active in posh south Delhi localities have put in money in the green belt area, which will allow construction of country homes in the future.<br><br>But what remains to be seen is whether this unquenchable thirst to buy acres of land in the hope of making huge returns once the policy is notified makes for an intelligent investment. The point here is that the area may look attractive at face value, but everything will depend on how infrastructure eventually develops in the area. “Since the country homes policy is yet to be notified, one can safely assume that it will take at least three to five years for infrastructure to develop in the area,” say Ajay Dabas of Delhi Farms, an expert body on farmhouses in Delhi.<br><br>The L Zone comprises of the last peripheral villages abutting Delhi and Haryana. There are 21 villages in the green belt area and 37 villages in Zone R. This means that this is also the last area to get connected with infrastructure. This zone encompasses 21933 hectares, out of which the green belt covers 10322 hectares and 11611 hectares is available for urbanised development.<br><br>The R Zone comprises of about 50% to 55% of the total land available. Private developers active in Gurgaon area have so far acquired almost 5000 acres. “A developer needs to acquire at least 25 acres to develop a project in this area. Prices here range from around R3 crore to R6 crore per acre,” says Ram Avtar Tyagi of Shokeen Buildwell Farms (P) Ltd. Well known developers have acquired large land parcels in Paprawat, Pindawalan Kalan, Jhuljuli villages etc, he adds.<br><br>The residential zone has not witnessed much activity since last year, as the policy rollout is yet to take place.<br><br>Some parts of the L Zone are to be developed for public, semi public, services and other use zones as per the zonal development plans. Once the local plans are notified and the developers apply for conversion as residential or commercial as per zoning, units in this area can be sold for anything between R3000 and R5000 per sq ft. The L Zone is expected to contribute around five to six lakh dwelling units that will include both group housing and townhouses.<br><br>In the green belt area, some 20 to 80% land has already been acquired. Some areas have already seen 100% appreciation, claims Raghuraj Dayal, a land aggregator in the area. Many investors have bought land parcels, some as much as 200 acres, in Jhatikara, Dhansa, Ghumenhera, Kanganheri, Raghopur, Nanakher etc for R60 lakh per acre to R80 lakh per acre a year ago. The current price in these areas is anything between R1.3 crore to R5 crore.<br><br>There is huge advantage to be gained if you invest in Zone L. Many villages earmarked as green belt are close to Gurgaon’s sectors 104, 107, 108, 110 and 111 and are located left of the Najafgarh drain that runs along the green belt villages, says Pankaj Dayal of Tattva Infraprojects Pvt Ltd. The Delhi government is developing the Haritima Tourist Complex in Kanganheri for setting up an adventure sports complex and an eco park. DDA is coming up with a state-of-the-art 18-hole golf course spread over 173 acres in Dwarka, a second diplomatic enclave is to be developed as part of Dwarka Phase 2, the Indira Gandhi International Airport is close by, two roads UER1 and UER2 have been proposed to run along this zone.<br><br>A four-lane road from Dwarka to Dhansa-BadliJhajjar has been proposed. The project will cost R230 crore. This 43 km road will start from Jhajjar in Haryana, pass through Badli, the Dhansa regulator towards Najafgarh and Dwarka Mor. At present, this road is a 19 km, two-lane stretch from Jhajjar to Dhansa regulator and a 25 km single stretch from Dhansa regulator to Dwarka Mor. Both Delhi and Haryana governments have given approval to the project.<br><br>Under the zonal plan of Zone L, almost 900 acres have been earmarked for a water reservoir. Buyers desirous of buying land in the area ought to seek advice and make sure that the land they are planning to buy will not get acquired or submerged. They also need to keep in mind that about 15% of the area in this zone is earmarked for public and semi public facilities.<br><br>Also, the water in the area is brackish and the water table is around 80-150 ft deep. The zone is expected to accommodate two to five million people, something that may put enormous pressure on infrastructure in the future. The current population in the area is 7,50,000.<br><br><b><a href="/UltimateEditorInclude/UserFiles/New Folder/Zone of Opportunity- HT.pdf" target="_blank">Click here to read newspaper edition</a></b><br><br>Source: HT EstatesView More +
“Acquire illegal farmhouses for social infrastructure; use sick industrial plots for residential development”
The Delhi Development Authority on Monday completed a significant milestone in its ongoing review of the Delhi Master Plan-2021. Four technical committees engaged in reviewing four broad areas of the Master Plan came up with presentations on the work done so far and an audience of top public servants, town planners, urban designers and architects offered their views on the broad ideas that the improved Master Plan seeks to incorporate.
The group deliberating on urban form, heritage and development controls said the preparation and implementation of local area plans which was handed over to the MCD for execution had failed because of the civic bodies’ several limitations. They said the plan should be based on 3D mapping done in a time-bound manner involving professionals like architects.
The group also advocated mixed land-use which should be people-friendly and addressing the day-to-day concerns of the common man. They also called for vaguely framed definitions in the Master Plan needed to be re-worded to address ambiguities.
While the DDA had earlier mooted regularisation of farmhouses after levying penalties, the group was in support of acquisition of land for providing roads, green belts, etc. for which the farmhouse owners can provide 25 per cent of the land. They also advocated that Geographic Information Systems (GIS) maps of the city be made public to enable professionals for future design exercises.
The group on shelter focused on redevelopment of existing buildings and colonies especially in unauthorised colonies and jhuggi-jhonpri clusters. It said the recommendations on density as proposed in MPD 2021 for low-rise buildings with a high density be ratified. The fire safety implications of mixed land use need to be looked at very carefully. The group observed that a large number of houses in Delhi were lying vacant and these need to be put to immediate use.
While the MPD 2021 provides for floor area ratio (FAR) increase in inverse proportion to plot size, the experts group recommended that it should be the other way round and larger plot sizes should have higher FAR with reduced ground coverage.
They also requested the DDA not to forget urban villages where the extended ‘lal dora’ has substantial land available for development. It was recommended that specific guidelines should be framed for extended ‘lal dora’ development.
The group recommended that sites selected for Transit-Oriented Development (TOD) need to be declared well in advance even before the metro projects are fully operational to synergise works of various agencies.
A demand for using large parcels of land available with farmhouses to be used for housing projects was also mooted. Large plots owned by sick industrial plots should be permitted to be used for residential development and all Master Plan (MP) roads need to be declared mixed land-use, the group said. The group also advocated that pooling of land be permitted in both planned and un-planned areas for redevelopment.
The group on transport with focus on improved mobility said the TOD plans had to be area-specific and a generic plan was bound to fail. It also called for comprehensive multimodal planning and that road safety audits need to be done. While encouraging car-pooling, the group desired that the share of Public Transport should be increased to 60-70 per cent. It also called for traffic Management Plans to be prepared for all areas and expanding the Bus-Rapid Transit corridor. However, Joint Commissioner of Police (Traffic) Satyendra Garg complained that his department should also be consulted in the transport and traffic management plans.
The group on environment and physical infrastructure called for a comprehensive environmental plan for Delhi to be prepared including aspects like seismic zones, biodiversity and climate change. With particular reference to water, the group advocated circular metabolism instead of the current linear approach to encouraging treatment, recycling and reuse. Options of vertical greening and vertical farming should also be explored to enable the city to produce its own food, the group said. It also called for measures to protect the Delhi ridge, Yamuna floodplains and large open spaces for ensuring recharge of ground water.
Source: The Hindu
Investors should not assume that any and every farmhouse located in the green belt will be approved under the new farmhouse policy recently passed by the Delhi Development Authority, says
Investors should be warned that everything marked in green on the zonal map is not part of the green belt. They should also not make the mistake of assuming that any and every farmhouse located in the green belt will be approved under the new farmhouse policy, which was passed recently by the Delhi Development Authority (DDA).
Construction now of new country homes will be allowed on a minimum plot area of one acre as against 2.5 acres allowed for farmhouses earlier. “All existing farmhouses in the proposed urban extension area that had come up prior to February 7, 2007, and also those where sanctions had been sought prior to February 7, 2007, but accorded after the date by the regulatory authority, shall be regularised and redesignated as country homes,” the policy says. It is yet to be approved by the ministry of urban development.
According to Sachin Sandhir, managing director, RICS South Asia, the new policy by DDA with respect to the regularisation of farmhouses built prior to February 2007 in the Delhi NCR region will definitely bring some relief to property owners. With both sanctioned farmhouses, where structural construction exceeds the permissible limit of 1500 square metres on 10,000 square metres of land and also unsanctioned farmhouses now being regularised, the market is expected to witness increased transactions of such properties.
In fact, the notional value of farmhouses has already seen a rise, even though the policy is likely to come into effect next year, once the ministry of urban development provides the necessary approvals and also once the policy has been notified and included as part of the Master Plan 2021. However, in view of the rapidly changing markets where price fluctuations are extremely common, one must seriously consider the use of a professional and qualified ‘valuer’ to access the accurate value of a farmhouse property. A professional valuation will help buyers make an informed decision, while taking into account relevant future projections of the marketability and pricing of the farmhouse property, along with reasonably anticipated local market conditions.
For the uninitiated, under the Master Plan Delhi 2021, the national capital territory of Delhi is divided into 15 zones. Of these, A to H, P,M and K1 are in urban Delhi and J, K2, L, N and P2 fall in urbanisable area or urban extension. The document stipulates that land up to the depth of one peripheral village revenue boundary along the border of National Capital Territory (NCT) would be maintained as green belt.
The policy on farmhouses/country homes passed by DDA has two components. One part deals with regularising the existing farmhouses. These farmhouses, generally of size 2.5 acres and above, are in the range of R15- 20 crore per acre. These are located in Zone J under the Master Plan 2021 that consists of areas such as Neb Sarai, Mehrauli, Satbari and Chattarpur — primarily land parcels located between NH8 and NH2, right from Rajokri to Badarpur. This zone has approximately 447 hectares or 5000 farmhouses. Farmhouses existing before February 7, 2007 will be legalised after payment of a
Many people are making the mistake and assuming that any farmhouse will be approved under this scheme. Also, there are also possibilities of some portion of the farmhouse land being used for road widening under this policy. If your farmhouse does not adhere to certain norms such as minimum road width of approximately 33 ft under the new norms, it might not be regularised, points of Ajay Dabas of Delhi Farms.com, an expert body on farmhouses in Delhi.
Also, irrespective of the physical presence of your land, if there is no approved construction on it, it is unlikely that a license will be granted if the land is not authorised or notified under the green belt of Delhi. Now, assuming that you bought land in 2009 in the green belt area and your neighbour did the same in 2005 — if he has constructed something on the land and you have not, chances are that your farmhouse is going to be approved. Since you did not build, you will not be granted a fresh licence. There is no automatic right.
The second part of the farmhouses policy has to do with new licenses that will be given in the green belt under the country homes policy. These will have a higher FAR of 20; will allow for built-up space of 8712 sq ft and will come up along approximately 11000 hectares. Delhi Farms estimates a potential for approximately 25000 dwelling units along this green belt that can range from 4000-8500 sq ft, depending on the location of the plot.
These parcels are located in zone N and zone L of the new Master Plan, primarily virgin land parcels. Zone N comprises of 19 villages out of which 10 are in the green belt spread over an area of 4305 hectares. These include areas such as Jounti, Nizampur and Qutubgarh. As many as 6000 to 7000 farmhouses can come up in this zone alone. The price of these parcels is around Rs 1 crore per acre. The area is likely to attract the trader community from West and North Delhi, say experts.
Zone L consists of 58 villages out of which 21 are under the green belt spread over an area of 10322 hectares. Some of the villages in this zone include Ghumenhera, Kanganheri and Jhatikara. The cost of these farmhouses ranges from Rs 2 crore to Rs 4 crore per acre. This area may prove to be an attractive investment destination for the spillover investor audience from South Delhi. Around 3000 to 4000 farmhouses can be accommodated in this area.
Source: HT Estates
Dated: 18th Aug 2012
The government today cleared the decks for construction of world-class exhibition-cum convention centre in the city at Dwarka by approving transfer of 89.72 hectares of land to the DIPP.
The decision to give special directions to the DDA (Delhi Development Authority) to transfer the land to the Department of Industrial Policy and Promotion (DIPP) for a nominal sum of Re 1 within six weeks was taken by the Union Cabinet chaired by Prime Minister Narendra Modi.
"The Cabinet has given its approval for transfer of land measuring 89.72 hectares in Sector 25, Dwarka, New Delhi, free from all encumbrances, to the DIPP for creation of a world class state-of-the-art exhibition-cum Convention centre," an official statement said.
"This is a special case so that directions can be granted to DDA under...The Delhi Development Act, 1957" for transfer of land, it said adding the project is expected to generate spending of over Rs 2 lakh crore per annum after commissioning of the second phase of the project and is estimated to generate over 5 lakh employment opportunities.
Commenting on the decision, Commerce and Industry Minister Nirmala Sitharaman said the efforts would be made to complete the project "at the earliest".
"The Cabinet has approved it. Land was the major issue but that has now come. Multi-use is being permitted. PPP model is also being allowed...So the permission obtained through the Cabinet today is to make sure that you have the flexibility to build it with one or the other method - PPP or completely government," Sitharaman told PTI.
Further, the statement said that a committee comprising secretaries from various ministries, including DIPP, Urban Development, Expenditure, DEA and Niti Aayog CEO would steer the project including project structuring and development options in a transparent, competitive manner.
The ownership of the said land will vest in and remain with the DIPP, it said adding the centre would comprise a host of independent facilities like exhibition halls, convention centres, banquet halls, auditoria, arena, financial centre, hotels, food & beverage outlets and retail services.
The national capital does not have a large world-class convention centre to host global conferences. At present, there are two such centres at Vigyan Bhavan and Pragati Maidan that hold global conferences.
Project structuring, initial expenses of non-PPP trunk infrastructure costs will be borne by the government. This may be central government's contribution by way of equity in the project, the statement said.
The project will be developed in Public-Private Partnership (PPP) mode.
"Permission is also granted to DIPP to lease/sub-lease the land and grant concession to the private entities for development and operation of various facilities. Permission for mixed land use in the project site will be accorded by DDA/ MoUD expeditiously," it said.
The official statement said it is estimated that the proposed exhibition-cum convention centre (ECC) will infuse a demand for more than 100 international and local exhibition events annually.
India currently lacks an integrated world-class facility which can meet the requirements of global exhibition-cum- convention operators in terms of space, project facilities and transportation linkages.
Only a few centres in terms of organised space are available in the country. Pragati Maidan has been the only organised large space for years which too is facing severe capacity and traffic constraints leading to great inconvenience to citizens and visitors to the centre in particular.
Further, the huge constant demand for exhibitions and related activities puts immense pressure on the existing facilities resulting in lesser time available for maintenance to hold large-sized events and maintain international standards.
In order to capitalise on this vast market and to drive India's industry, commerce, trade and tourism, the DIPP has taken the initiative to develop an exhibition-cum-convention centre at Delhi, the statement added.
The development of the facility and supporting components is expected to help increase the share of Asia in terms of number of events to around 15 per cent by 2021.
Development of the ECC and support facilities is estimated to contribute more than one million international delegates based (non-leisure) Meetings, Incentives, Conferences, Exhibitions (MICE) tourism per annum, it said.
It has been estimated that the global MICE market, which supports 400,000 conferences and exhibitions worldwide, is of the size of USD 280 billion and is a significant economic driver for a large number of nations.
The total size of the Asian MICE market accounts for USD 60 billion having demonstrated a growth of 38 per cent since 2006.
"In the absence of world-class exhibition and conference facilities, India has not benefited from the potential benefits of this development," it said.
Further, it added that the job creation shall not be limited to core ECC facilities but would also entail opportunities for regular formal employment in supporting ECC land uses like retail, office and hospitality.
Press Trust of India | New Delhi March 23, 2016
There never existed a policy for the organised development of the Farmhouses in Delhi. Most existing farmhouses mushroomed over the past four decades. There is a policy now, which not just recognises Farmhouses as a separate product category, but also offers a framework for organised development.
In the 1960s, Delhi was still a largely agrarian society, and land wasn’t at a premium. The government was focused on setting up DDA, to create middle class housing stock to cater to the influx of people into Delhi. Land in villages was used for farming, and the landowners were permitted to build a dwelling unit on the agricultural land, to facilitate them to stay overnight, to tend to their agricultural produce. It was never intended to be a first home.
With incremental affluence in the 1980s & 90s, land under some villages in South Delhi changed hands from villagers to the HNI segment. Farm house colonies were created by the private sector developers, as well as consortiums of individuals. The government too ignored this segment as these private individuals were providing for themselves, both infrastructure & amenities. There were no written down building bylaws on Farmhouses.
In the course of time, the land owners built ‘large mansions’, in most cases exceeding the laid down norms for FAR, height & land coverage.
By the turn of this century, there were multiple farmhouse colonies in Delhi. The Municipal corporation estimated that there were more than more than 7000 dwelling units, of which, the MCD itself had accorded legal sanction to 70%. These farmhouses were neither ‘Legally illegal’, nor ‘Illegally legal.’
Over the past decade & half, umpteen efforts were made to legalise these structures, and put in place guidelines, not just for the regularisation of the existing farmhouses, but also create fresh stock of high end Farmhouse residential areas.
Under the Delhi master plan 2021, provisions were made towards the same. During the review of the same through 2012-14, the government felt the need for a rank new pragmatic policy.
The Low Density Residential policy (LDRP) was notified 2013.
In 2015, the Delhi Urban Arts commission (DUAC) revisited the building bylaws and amended them.
Your investment today into Farmhouses in Delhi, would most probably be the best investment decision, tomorrow.
By Ramesh Menon
Farm house owners in Delhi can now construct separate buildings within their farm house plots and also build staff quarters, thanks to new provisions approved by the Delhi Development Authority (DDA) on Wednesday.
These decisions were part of the proposals for amendments to existing Low Density Residential Plots (LDRP) Provisions of the Master Plan for Delhi 2021 and regulations for regularisation of existing farm houses under the Delhi Development Act. 1957. The proposals, among others, were taken up in the meeting of the authority chaired by Delhi L-G Nujeeb Jung on Wednesday.
Existing farm houses in Delhi were regularised through notifications dated May 10, 2013 and June 18, 2013 as a modification to the MPD-2021. After notification of the policy, the process of regularisation of farm houses and sanction of new low density residential plots was undertaken by the Municipal Corporations of Delhi. There were, however, during the implementation process certain issues which were referred by the corporations to the DDA, which required clarifications in the notified LDRP policy/regulations, a DDA spokesperson said.
The DDA has now proposed to fix the floor area ratio at 3,000 square meters for farm house plots larger than one hectare, to prevent the construction of ‘palatial’ structures.
The DDA has also introduced a new provision for allowing a housing unit for Economically Weaker Sections (EWS) of 30 square meter size on one acre LDR plot, which will help build staff quarters.
Hands over parking lots to MCDs
In a move that would help the cash starved Municipal Corporations of Delhi, the DDA is going to transfer its parking sites in commercial centres to the concerned corporations.
The DDA feels that this move will boost the revenue stream of the MCDs and also ensure proper management, operation and maintenance of market complexes and efficient delivery of parking services to the public. A DDA spokesperson said that the respective corporation will be responsible to ensure maintenance of the parking sites and take action against encroachment or misuse.
The DDA has decided to simplify the procedure of levying misuse charges for DDA plots to make it less cumbersome and more people friendly.
These charges are levied for using a DDA plot for purposes other than those mentioned in the lease deed. The authority has decided that an affidavit can be now accepted in lieu of inspection by the DDA officials, with recent photographs and certification by way of affidavit from two witnesses or registered RWA certifying that there is no misuse of the respective property.
Source: The Hindu
Dated: 28th April 2016
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Following a protest by farmhouse owners and objections by municipal corporations, Delhi Development Authority (DDA) has simplified the provisions for low density residential plots (LDRP) in notified villages.
The decision was taken in DDA's monthly meeting on Wednesday. Though the policy was notified in 2013, the corporations were not able to clear new low density residential area (LDRA) projects or regularise existing farmhouses due to the clause. According to the clause, the minimum setback requirements in case of LDRP was 10 metres on front side abutting the approach road and 5 metres on other three sides. "In case of farmhouses prior to February 7, 2007, the existing buildings were not falling within the prescribed setbacks. So, it has been decided to amend the clause. Now, minimum setback on two sides shall be applicable for regularisation (i.e 10 metres on front side and 5 metres on any other side)," said a senior DDA official.
Sources said this will help thousands of farmhouse owners who have been running from pillar to post to get their property regularized.
In a major shift from its previous stand, the land-owning agency has included areas falling outside demarcated LDRA. "We have redefined LDRP. It now includes existing farmhouses in urban extension, both within and outside LDRA villages, which had come up prior to February 7, 2007. These farmhouses can be regularized as per the policy," said an official.
On South Corporation's advice, DDA has also tightened clauses related to the floor-area ratio, especially for bigger plots. Sources said the town planning department of South Corporation raised the issue after it got proposals from big plot owners for construction of "palatial" houses.
Source: Times of India
Dated:28th April 2016
The new policy on farmhouses will enable construction up to 3,000 sq meters
The Delhi Development Authority (DDA) may come up with its new policy on farmhouses by end of this month. The policy providing for enhanced built-up area is awaiting approval of the Union Urban Development Ministry which is likely to be given soon, sources said.
Once approved, notification in this regard will be issued by the Arvind Kejriwal-led Delhi government while it will be the responsibility of the concerned municipal corporations to implement the same.
HOW WILL THE NEW POLICY CHANGE THE STATUS QUO?
"At present, farmhouses which are between 2.5 acres and 5 acres can have constructions only up to 300 sq meters which is very less as compared to the plot size. But the new policy will enable construction up to 3,000 sq meters. As per the policy, once it is notified, the MCD's will be monitoring the implementation," said Subhash Arya, Leader of the House in South MCD.
The one-acre farmhouses that come under the Low Density Residential Area can construct three residential units measuring up to 1,200 sq meters.
At present, these plot owners can only construct up to 100 sq meters.
EASE FOR FARMHOUSES UNDER CONSTRUCTION
As per the amendments in policy, farmhouses in which some construction has already taken place and want to construct beyond the available limit will still be able to regularise their property by paying the penalty per sq meter of area beyond the permissible limit.
It would be easy to get the farmhouse construction plan passed by the municipal corporation.
An official explained that if a farmhouse has construction up to 3,000 sq meters and the owner wants to extend it to another 600 sq meters, they will have to pay the penalty to regularise the constructed portion after registering it.
If the farmhouse owners during construction extended till the road, the road would fall under the jurisdiction of the south MCD.
INSTRUCTIONS FOR THE OWNERS OF THE FARMHOUSE
Owners will have to widen the roads as per the policy. The farmhouse will be divided and considered under different floor area ratio. South MCD has passed the plans of 3,000 farmhouses.
Dated: 16th June 2016
Most housing units being constructed by public sector agencies will be sold at market price and allotted through a draw of lots.
Delhi Development Authority’s (DDA) housing schemes have all along been a big draw for people wanting to buy property at affordable rates in the Capital. This week, there were reports of Delhi Metro Rail Corporation (DMRC) planning to throw open a similar scheme for the general public.
Another public sector undertaking, The National Buildings Construction Corporation (India) Ltd, is currently working on projects in Karkardooma and Sanjay Jheel for DDA and has launched two projects in Gurgaon. Earlier this month, the Cabinet approved the redevelopment of seven General Pool Residential Accommodation (GPRA) colonies of which NBCC will redevelop Sarojini Nagar, Netaji Nagar and Nauroji Nagar.
Now the question is, will these agencies on their own be able to achieve the targets set in the Housing for All by 2022 Mission or will the private sector have to create stock? The requirement of 16 lakh units for Delhi, as per Delhi’s Master Plan 2021 seems to be quite a task given the fact that DDA has just created around five lakh units in the 49 years since its inception. In such a scenario the only solution to the housing shortage can be offered by fast tracking the languishing land pooling policy and the huge redevelopment potential that exists within the Capital.
The agency has identified two plots near the Metro stations in Okhla and Janakpuri, where it plans to construct 93 and 350 units, respectively. The 2BHK and 3BHK units will be sold at the market price of Rs 80 lakh to Rs1 crore and will be allotted through a draw of lots. DMRC has earlier constructed residential apartments in Dwarka, Yamuna Bank, Saket and Shastri Park for its employees. “DMRC intends to develop a plot of 11,280 sqm at Janakpuri (West) under Transit Oriented Development (TOD) norms. The concept plan for this plot is ready. It will have approximately 300 flats of different sizes in addition to mandatory EWS. DMRC will also construct about 5,000 sq m of commercial area on this plot. A scheme will be launched to sell these flats directly to the public/government organisations/government PSUs by inviting applications,” DMRC sources say.
Another plot near the Okhla Metro station is being developed under TOD norms where DMRC intends constructing 93 flats and developing a commercial area. These flats and commercial areas will be directly sold by the DMRC, the sources say.
NBCC (India) Ltd had earlier launched two real estate projects and constructed around 1,500 units in Gurgaon’s Sector 37 and Sector 89. Possession in the first project will be given in September this year and the company is awaiting the completion certificate for the second. It also plans to construct 166 units in Faridabad’s Sector 41 and three projects in Ghaziabad – one in Govindpuram with 152 units and two in Koyal Enclave, with about 200 units.
The public sector agency is currently constructing 6,252 units in Delhi NCR and 28,965 units are in various stages of planning. The NBCC model of housing is redevelopment as is the case with the government housing project being constructed in East Kidwai Nagar. Revenues generated by selling commercial space in the Netaji Nagar, Sarojini Nagar and Nauroji Nagar redevelopment project will be utilised for construction.
“We will sell the built-up properties. It means we will construct offices and residential units and part of the offices will be sold in the market to generate the money. The money collected from the sale will be used for the construction,” says Anoop Kumar Mittal, CMD, NBCC.
The agency is also developing a greenfield project for DDA in Karkardooma (75 acres) and in Sanjay Jheel, where it has been given the mandate to develop 25 acres. “For these projects, architects have been appointed and the engineering work is being finalised. Designs will be ready in another three months after which they will be sent to DDA for its approval and then submitted to the local bodies. I expect work to begin by the end of this financial year, says Mittal.
As many as 8,600 units are expected to come up in Karkardooma and around 3,000 in Sanjay Jheel.
While most urban planners and real estate experts have welcomed the initiatives being undertaken by public sector bodies, some are sceptical. They fear that these agencies lack the bandwith or the track record to generate housing supply of as much as 16 lakh units as envisaged by Master Plan of Delhi 2021.
A K Jain, former commissioner (planning) DDA, is confident that 4 to 5 million units can be created within Delhi on existing land banks. “We have to optimise the potential of existing brown field areas. The fact that multiple agencies are looking at residential development in the city is good and this ‘competition’ should be encouraged,” he says.
Ramesh Menon of Certes Realty and a Master Plan expert is of the view that public sector undertakings do not have the bandwith to meet housing supply targets. “DMRC may at best be able to construct 1,000 units but that is primarily to monetise its land assets. Constructing dwelling units is not their core business, infrastructure creation is their mainstay. If they have now decided to construct housing stock and open it to the public they are doing so only to monetise surplus land. The housing stock expected to come up is only a drop in the ocean,” he says.
DDA has so far been able to deliver only about four lakh units since its inception, NBCC can deliver over a 1,000 units and DMRC perhaps the same number. What is required is a supply surge of affordable housing stock and that can come only in a free market. Dependence on government agencies for creation of housing supply to meet the supply-demand gap is not the solution. The land pooling policy has to be fast tracked, Menon says.
About 15,000 acres in the capital are held by various government departments on which almost one lakh units can come up but that again will not be able to meet the shortfall of 4 lakh dwelling units.
The 25% vacancy rate in existing colonies is also a problem because the units are not affordable.“The only way to pair demand and supply will be to allow the private sector to create five times the average supply generated by DDA and other agencies through the process of land pooling, incentivised redevelopment and participation of government agencies through monetisation of land assets (for example, railways alone has around 700 acres),” says Menon.
The gross land under land pooling is around 57,000 hectares, which is around 1,40, 850 acres. Master Plan 2021 has envisaged a requirement of 16 lakh units for Delhi alone. What this means is that around 10 lakh units will be created under land pooling. The balance is expected to be generated through the redevelopment opportunity.
As for affordability, over and above housing to be constructed by private developers, they would also have to hand over 15% EWS stock to DDA. These would typically be 400 sq ft to 1,100 s q ft units priced at Rs 10 lakh to Rs 25 lakh.
“As many as two to three lakh affordable units can be constructed under the land pooling scheme. Public sector agencies can at best meet a fraction of this total demand. DDA should become a regulator facilitating this development and track the private sector’s delivery record,” Menon adds.
Source: Hindustan Times
Dated: 16th July 2016
High net worth individuals are now likely to shy away from agricultural land deals and this might help soften market prices in the long term.
Will the ban on Rs 500 and Rs 1000 notes impact the lucrative farmhouse market in Delhi NCR?
It is no secret that the cash component in transactions for such properties range from anything between 25% and 60% with the largest investor segment comprising high net worth individuals. They are now likely to shy away from agricultural land deals and this might help soften market prices in the long term.
Funding for developers is not permissible under RBI rules. Developers are not allowed to borrow money from the banking system for land acquisition under RBI guidelines. Financing, however, is permissible through NBFCs (non banking financial companies) and real estate funds. Transparency in the market will be welcome and would mean greater control over cash flows. This would be a positive signal for institutional investors to come in, giving banks more confidence to lend for land.
Going forward, private equity funds and NBFCs could be encouraged to invest in this market due to the clampdown on black money and because of the low density residential plot policy (LDRP) of the Delhi government. This policy allows development of one-acre plots into three large high-end farmhouse residential units sold at ‘reasonably’ affordable prices of Rs 3 crore to Rs 8 crore.
As of now, the Delhi government and the municipal corporation of Delhi have yet to formalise and operationalise the process of building approvals. About 70 villages come under LDRP and 95 villages under the land pooling policy (LPP). Villages under LDRP include 23 in south Delhi and 47 in southwest and northwest Delhi. The Capital’s Zone J/green belt comprises 7,000 hectares and the remaining 47 villages are spread across 15,000 hectares. Altogether, this comes to around 22,000 hectares. In the short term, institutional funding opportunity for this asset class is worth Rs 2,000 crore, say experts.
The move to cleanse the system of black money can also encourage top-end developers of international brands to enter this segment. Currently, the minimum acreage required for an approved farmhouse is 2.5 acres for one approved dwelling unit. Under the new policy, the minimum land required will be 1 acre with three dwelling units. Hence, approved farmhouses would be available for anything between Rs 5 crore to Rs 10 crore as against the current value of Rs 10 crore to Rs 30 crore. Units too will be smaller (around 15,000 sq ft). “Going forward, it will be easy to get farmhouse dwelling units at the price of high-end apartments and we are hoping that they will eventually get funded by banks or other financial institutions. High net worth individuals, especially CEOs of companies, may be encouraged to invest in this segment going forward,” says Ramesh Menon of Certes Realty.
Experts say that transactions may dry up immediately and prices may soften but policy triggers in the long run will help build the market and bring back investor confidence.
Banks had since 2006 been debarred from lending money to developers to purchase land. Funding for agricultural land was also not permissible under RBI guidelines. Until now transactions are taking place as joint ventures, joint development or facilitating corporate divestments. But the demonetisation drive is expected to encourage institutional funding in this segment.
Money that NBFC has for land acquisition could be used for transactions earlier funded by HNIs who are now disappearing from the market. Also, with RERA regulations getting implemented, there will be increased transparency in the market, which will encourage institutional capital to chase these markets, say experts.
Ramesh Nair, COO – business and international director, JLL India, has a contrarian view. Going forward, there will be less aggregation in land because of the confusion in the sector and that could have an impact on the supply. “Reduction in supply will actually force prices to go up. Landlords who bought land at historical prices may actually want to hold on,” he says.
Though land is out of the ambit of institutional lending as of now, demonetisation may encourage institutional investors to come in, says Samantak Das, chief economist and national director – research, Knight Frank (India) Pvt Ltd. “Confusion may prevail for the next three to six months but going forward transactions will be more transparent and that’s when banks may consider reviewing this asset class.”
A leading investment banker says that they are watching the situation and the space with an intent to participate in the opportunity in the future.
Source: HT Estate
Dated: 19th November 2016