Impact of Land Pooling Policy on Real Estate in Delhi NCR
The Delhi Development Authority (DDA) has given green signal to the Land Pooling Policy in Delhi and with this implementation the working of real estate market will change in Delhi/NCR. Delhi Development Authority plans to develop 20,000 hectares in Dwarka in southwest Delhi, Rohini and Narela in the northwest as smart cities equipped with uninterrupted power, water and wi-fi connectivity. But the absence of a clear definition of what a smart city is, this may not be an easy task to accomplish. Besides, these are pure greenfield developments – virgin land being developed with modern infrastructure cannot exist in isolation. The city needs to redevelop the unauthorized regularized colonies, equip them with basic facilities, say town planning experts. Another gradual impact will be that developers active in NCR will slow down construction activity in these towns and the number of new launches will come down. No apartments will be delivered under the policy before six years and, therefore, short-term impact looks unlikely. Also, to take the policy through to the operational level, the Centre, the state and DDA need to be on the same page. Since the policy involves surrendering of land, fresh allotment of land and only then can the developer go in for project approvals, buyers should be careful in committing any money to project announcements under this scheme by private development companies. No doubt that the land pooling policy to be implemented in Delhi is a fair deal for the builders and home buyers. This policy has the potential to change the dynamics of the residential market in NCR by boosting the supply of affordably priced apartment units within the geography of Delhi City.