In the current NCR real estate scenario, Greater Noida (West) has emerged as a booming real estate market that is equipped with a sound infrastructure and many well-developed as well as proposed residential and commercial projects. Moreover, recent initiatives by the Government have made this area favourable amongst many prospective home buyers.
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.
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.