Will the change in Delhi’s Land Pooling Policy affect NCR’s realty market?

For starters, let’s understand what does Land Pooling Policy mean?

How does it impact property buying and selling?

Should you invest in a property or in a pooled land?

And, most important, what is the current policy status?

These queries are likely to be raised by investors interested in buying a property in Delhi’s National Capital Territory.

Land Pooling comes into effect when small chunks of land are owned by group of owners who assemble for the development of infrastructure as per the provisions of the Delhi Development Act 1957.

After the development work is complete, the Land Pooling agency redistributes the land among the title holders (land owners) after deducting the cost of the infrastructure development. This is done to attract and infuse private capital into the under-developed housing sector in a city’s outskirts, and reduce the pressure on the land that is already saturated.

Will Delhi's Land Pooling Policy change NCR's Realty

Will Delhi’s Land Pooling Policy change NCR’s Realty

What’s in it for the buyers?

Under the law, while land owners offering between 2 and 20 hectare of land for development are entitled to receive at least 40 percent of their land back, after the development work is complete, those who give up the maximum (20 hectare) stand to gain 60 percent of their pooled land back once the work on the infrastructure (roads, drainage system, electricity poles etc.) development is complete. The remaining is claimed by the Delhi Development Authority (DDA) and subsumed under the Master Plan 2021. The changes clearly spell out the new land use policy – about 55 per cent for residential construction, five percent for commercial/industrial and 20 percent for open, green areas, and the rest would be reserved for common public facilities, such as educational institutes, hospitals, police and fire stations etc.

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Why is this a good time to buy property in Delhi

Why is this a good time to buy property in DelhiThere is no doubt that buying a property is a single most important investment venture for salaried people and that is why it usually involves a lot of planning and determination.

When it comes to buying a house in Delhi or NCR, this might be the best time to buy a house, this is what the real estate experts feel, keeping in mind the current market scenario in the Delhi region.

As per the market reports, there are a number of pockets in and around the Delhi region where real estate price points have fallen down by over 20 per cent year-on-year, according to the National Housing Bank’s Residex index, which tracks residential property price points spread across 26 cities in India. [Read more…]