For the first time in the city's history, Delhi will unlock 27,000 hectares (over 270 sq km) of land for private developers to acquire for building residential apartments. In another first, the pricing of these apartments will be determined by a real estate regulator.
These are the key proposals in the city's yet-to-be notified masterplan that breaks Delhi Development Authority's monopoly over acquisition of new land for development.
The land, which accounts for roughly 18 per cent of Delhi's area, is mainly in the north-west and south-west areas of the city, at places like Najafgarh, Dwarka and Alipur. The masterplan has been approved by a Group of Ministers and awaits the Union Cabinet's nod.
An official said developers would be allowed to acquire a minimum of 10 contiguous acres of land to develop apartments. "The developers will also be responsible for building roads and providing social infrastructure like schools and hospitals," he said.
It will also be mandatory for private developers to reserve 35 per cent of new dwelling units, or 15 per cent of the floor area ratio, whichever is higher, for low income families.
To determine pricing, the Ministry for Urban Development will appoint an autonomous regulator that will decide profit margins for developers. The appointment of a regulator for Delhi is a part of the Real Estate Bill that will be tabled in the next Parliament session.
"Taking all the costs together -- like that of acquiring land, providing infrastructure and housing to the economically weaker sections -- if the cost of an apartment is hypothetically Rs 1 crore, we do not want the builder charging Rs 5 crore for it," said the official.
The move is aimed at tackling the national capital's population boom, which has raised demand for housing. Freeing up 27,000 hectares for private development will provide housing to nearly 40 per cent of the growing population of Delhi, which is expected to reach 2.2 crore by 2021. (Rediff, Business Standard)