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1 1 of 5 22/04/ :18 Subscribe Advertise Search Home Bon Vivant Civic/Social Editorial Kid Corner Business Real Estate Pastimes Sport Global Archive G Scape Register here for your weekly dose of Friday A Capital Plan Abhishek Behl / FG India Apr 12, 2013 The real estate growth in the National Capital Region (NCR) has primarily been driven by and Noida with Delhi not contributing much, owing to the monopoly of the government in land acquisition and development. But all this is going to change in the next couple of years, with the current UPA government pushing for the Delhi Master Plan (DMP) 2021, which embraces the private sector with gusto. DMP 2021 calls for unlocking almost 60,000 hectares of land in rural, urban and unauthorised areas of the National Capital for development, to meet the rising demand for housing and infrastructure. Will this Plan and expansion in Delhi now have a major influence on the -Noida story? Experts are divided on the impact of the Delhi Master Plan both on the urban growth of Delhi, as well as its fallout on in particular. While they give full credit to the Delhi government for planning a comprehensive development of the City, they are not yet sold on the implementation and execution part of this massive project. A.K Jain, former Planning Commissioner DDA, says that the future of the City depends on the timely execution of this Plan and this is where the State has been largely found wanting. Real Estate developers and analysts, who are tracking the Delhi Master Plan, say that it offers a great opportunity for the housing sector in the entire NCR, as large chunks of land will be available for development. Such a large scale development, and further urbanistaion of Delhi is definitely going to influence the real estate sector in the Millennium City, believes Ramesh Menon, CEO of Certes Realty, a firm that has been tracking the MDP 2021 for a couple of years. According to him, the real estate prices in will rationalise and see correction, once the DMP projects become operational. The land prices in the proposed development areas in Delhi are less as compared to. Once the projects are launched, Delhi will have houses available at all price points, which will attract buyers from across the NCR, he says. A large number of buyers in being investors, will also flock to Delhi, as they look to earn more profits, predicts Menon. Real estate observers say that the market in has already slowed down in the last six months. Sam Chopra, CEO of Remax, also believes that the Delhi Master Plan will definitely effect the market in the Millennium City, as Delhi has a better brand value, infrastructure and amenities. Land consolidation is happening in Delhi, FSI norms have been liberalised, and land pooling has been allowed. The new farm house policy, that allows for smaller farm houses, will definitely impact the sale of luxury apartments in, believes Chopra. The greater availability of land for affordable housing, and the single window clearance system being mulled in the Delhi Master Plan, would also be great enablers for the builders. Presently, a builder has to get 19 clearances from different departments in, before launching a project; this not only increases costs, but delays construction as well. However, Menon and Chopra also believe that the success of the Master Plan will depend on its timely execution. Many believe that the Union government and the Delhi government have upped the ante for implementing the Master Plan as elections are on the anvil. Dr. P.S.N Rao, President of NAR, questions the sudden push being given to DMP The finalisation of the Plan, and the regularisation of unauthorised colonies, is being done to please the builders, as well as a huge populace living in these areas. Why was no action taken in the last four years? These are only ploys to impress the respective lobbies, and not a genuine push towards planned urbanisation, he believes. The builders, of course, have welcomed the Plan. S.K Sayal, Director & CEO of Alpha G Corp, a real estate company in having a pan-indian presence, says that DMP 2021 marks a radical departure from the existing system of government monopoly over land and housing, as it proposes private participation in development of housing in the capital. He believes the old system was suffering from inefficiency and corruption, leading to the growth of unauthorised colonies and illegal floors in planned colonies. In his opinion the new policy will pave the way for a real estate boom in Delhi. Involvement of private builders will ensure quality flats; but whether the prices of such flats will be within the reach of even the middle class will largely depend on how the government goes about implementing and monitoring the new Public-Private Partnership policy. The government will have to ensure a corruption-free public housing system, to counter any opportunistic pricing. The initiative to bring in private players is a good one, but the government has to now put in place a process that is clean and transparent. On the bright side, housing prices can come down in the long run if the government is able to ensure adequate supply, as this would help largely in bridging the current huge gap between demand and supply, says Sayal. Real Estate analysts believe that, unlike the model, where first the real estate development takes place and thereafter infrastructure is What's On In Coming Up-What's On In Friday Like 772 Visit Video & Photo Gallery Most Read Keeping Builders Honest Most Commented Setting The RWA Standard Make Your Own 'Shani' A Ray Of Sunshine A Capital Plan Latest Issue Poll Do you think government should reconsider its policy of promoting liquor vends in? Yes No Can't Say View Results

2 2 of 5 22/04/ :18 developed. Delhi has plans to first develop the infrastructure. Some of the projects related to roads, power and water have already been initiated by the State government. Menon is of the opinion that will have to relook its infrastructure, develop an effective transportation system, and become self-reliant on power, to take on the challenge being presented by Delhi. I think the problem of potable water is also acute in, and unless things improve it will be a serious problem for the City, he adds. Another major issue for could be the fact that a large section of workers come to the City from Delhi; and if a number of large companies decide to migrate to Delhi, in view of better facilities for them and their employees then it could prove to be a dampener for. Delhi has always been a preferred choice, other things being equal. Also, presently corporations in spend a large amount of money on generating their own power and providing transport facilities, apart from paying premium rents. has become an expensive City. With Delhi planning to create large commercial and industrial estates also, as per the DMP, major employers in could relocate. The silver lining for may be that, with both cities having a similar set of major builders, not many of them would like to destabilise a performing market. Vineet Singh, Business Head, 99 acres dotcom, is also of the view that the overall impact of DMP on the real estate market will be gradual, as the implementation is a long way off. The Master Plan also has ambitious development plans, he says. should learn how to ensure effective Metro connectivity, from Delhi, he feels. He admits that the Delhi Master Plan will vastly improve the availability of houses; these are new proposals, like the commercialisation of roads leading to the Metros, and fresh stock of land in emerging colonies. This is bound to push up values. Yes, it is possible that investors in will shift their focus to Delhi, he agrees. Delhi currently lacks availability; however, if land becomes available at reasonable prices, then it is possible that the limited investors who are either investing in or Noida will realign their investments. If the same ticket size is available at similar rates in Delhi, they would prefer that, he says. As far as pricing is concerned, he is of the opinion that rates in the existing sectors in have reached a saturation point, and any changes will now be witnessed in the new sectors that will see competition from Delhi. Ashutosh Limaye, Research Head, JLL, is of the opinion that a large number of new housing units in Delhi will go a long way in catering to the demand for housing, while pricing will also be a factor. has already unlocked newer areas for development, under its Master Plan 2031; it would be wise to now focus on infrastructure capacity building. As far as prices are concerned, he says there would be some pressure in. Implementation and execution of the Plan, and the development of infrastructure as per DMP 2021, is thus being considered as the key to the transformation of Delhi. Similarly, would be wise to relook its infrastructure, develop transportation on the lines of Delhi, bring unauthorised colonies into the fold of development, and ensure that villages do not end up as urban nightmares. still has time to rediscover itself, believe experts like Sanjay Sharma of Qubrex. He opines that realty in Delhi will be controlled, and only allowed to grow in such a manner that it does not upset the real estate applecart in the National Capital Region. No doubt a Delhi address is prestigious, and people will be ready to pay a premium for it. The real estate in will be discounted, due to excess supply but it all depends on the time frame. We have to see how quickly the land is released to developers, and the quality of the implementation, he says. The Master Plan also clears the role of private developers in Delhi, and this will definitely accelerate the real estate development as DDA does not have the necessary resources and expertise today, he opines. The majority of the realtors and analysts believe that the success of DMP hinges on government action, and its readiness to timely implement the projects as planned. Prodipta Sen, Executive Director, Alpha G Corp, opines that the government so far has not even been able to enforce a basic measurement and price criteria for flats in Delhi. To make this real estate story a success, the Delhi government recently approved a Land Pooling Policy, whereby private owners can come together and pool their land, to develop housing projects. Former Planning Commissioner Jain says that the government has also introduced liberalised FAR norms, which will enable re-densification, and boost the vertical development of the City thus housing more people in a lesser area. The new farm house policy, and re-development of unauthorised areas, has also been designed to ensure that urban regeneration takes place at a fast pace, he adds. In comparison, the Millennium City does not have a proper policy on farm houses, and all forms of illegal means are being used to convert the Aravalli forest land into farm houses. The actions against encroachments are also token activities and encroachments are often regularised in the long run, avers an insider. When asked how could be effected by the proposed massive urbanisation in Delhi, Jain opines that the results of master planning are normally visible over a time frame of 15 to 20 years. I planned the Dwarka sub-city, and it has taken almost 20 years to come of age; as such, the new phase of development in Delhi is unlikely to affect in the near term, he says. His contention is strongly supported by Harsh Dutt, Director, Madhyam, a real estate firm that deals in both and Delhi properties. I don t believe that any bubble is going to burst in the short or long term, as investors today have realised that they have to stay in the market for at least an year and a half to make money. This has also stabilised the market. real estate has matured, and buyers are very aware of what they want, which address they prefer, and the kind of lifestyle they wish to adopt, he says. Dutt firmly says that buyers will never go to live in properties developed in areas like Najafgarh and beyond, as the population density will be too high also putting pressure on water, power and roads. I don t see any pressure on price points. Though there may be pressure due to global cues, the domestic demand is very high, and it will keep the market strong, he says. But Menon, who is a votary of the DMP, says that Delhi will be a power surplus state by next year, and the supply of potable water is also

3 3 of 5 22/04/ :18 being assured. He adds that there is no match between the big brother, and the pretender to the throne. S.K Sayal of Alpha G Corp is of the opinion that any correction in would be only on a short-term basis. One of the aims of DMP 2021 is to stabilise the prices of real estate for the middle classes and the urban poor but the increasing population creates a situation that supply never meets the demand, and such thus targets are difficult to meet, he adds. Experts further opine that before making any prediction on the impact of DMP, one needs to see sufficient marketing and launch activity in the newer regions under the Plan. Ashutosh Limaye of JLL says that pricing and developmental activity, as well as the participation of private developers, will be crucial with respect to the timing and effect on the suburban residential and commercial markets. He however feels that commercial space is more established in the suburbs of Delhi, and as such there is likely to be little impact on the commercial real estate in due to the developments under DMP. Developers like Sayal believe that affordable housing is the key to real estate growth in the near future; it does not require a major push, but only certain key policy measures from the government. Both developers and analysts agree that ultimately it is the end users in both Delhi and who will benefit, if large scale urbanisation takes place, with an effective regulatory mechanism in place. Unlocking Delhi Master Plan The Delhi Master Plan aims to urbanise almost 60,000 hectares of land in the 15 Zones created. These Zones will provide 15 lakh dwelling units, that will house a further 1 crore population in the Metropolis; the current population is 1.36 crores. Zones A,B, C,D, E, F, G, H, P,M,K1 fall in the Urban phase, while Zones J,K2, L, N, P2 are part of the Urban Extension. A major boost to the new real estate development will be given by the planned urban infrastructure such as the two Urban Express Roads (UER1 and UER2), that will give these areas quality connectivity. A.K Jain says that the Metro rail, and new roads, will play a crucial role in assimilation of such a large populace in the City. UER1 will connect NH1 and NH8, whereas UER2 will connect NH1 and NH2 passing through the other national highways; the work on them has already been initiated. The 5 New Sub-cities: Zone L: Zone L is located in South-West Delhi, between and Najafgarh, including surrounding villages. It is proposed that almost 20 lakhs people will be housed in this Zone. This Zone is likely to contribute around 5 lakhs houses, and the major attraction will be the country homes on 1 acre plots as per the new farm policy. The price of land has increased in the last one year. The current rates are between Rs. 3 to 6 crores per acre. Dwarka sub-city is close to Zone L, and so is the international airport, along with a proposed Diplomatic Enclave. Two urban relief roads, a 4-lane road from Dwarka to Jhajjar, and the Expressway will provide great connectivity. Zone N: It is located close to Rohini sub-city, and this Zone is projected to provide 5 to 6 lakhs houses. There is no restriction on height in this Zone, as it does not fall in the air corridor thus allowing for higher FAR. This Zone will see maximum housing for the Low Income Group and EWS. Well known NCR developers have bought land in Madanpur, Bawana, Kanjhawala and nearby villages. A knowledge based Industrial Park is proposed to be built in Bawana. It is well connected by the Metro at Rithala and Mundka; and the Metro will further be taken to industrial areas. A large bus stand is also being developed in Kanjhawalla. This Zone is expected to accommodate 15 lakhs people, and provide jobs to almost one lakh. Zone J: This Zone is in South Delhi, and includes Chattarpur, Mehrauli and Satbari. The lack of land, and the Supreme Court order on land acquisition in some villages in this area, has put a question mark on the process of urbanisation. A large plot owned by a government PSU is likely to witness group housing near Ghitorni. There are also plans to develop the 7 kilometre long Metro corridor, for redensification and commercial activity, so that people need not travel long distances. Around 1,500 metres area, around the Metro station, will be commercialised, and more residential complexes will be allowed. The cost of land in this area is very high, and the presence of several monuments also restricts development. Zones K: Dwarka sub-city is situated in the South-West of Delhi, and forms part of Zone K, having an area of 12,056 hectares. There are around 350 unauthorised colonies, and DMP proposes Special Economic Zones in these areas. The current population is 20 lakhs, and the area is projected to hold double the number. The government is planning to set up a Gem and Jewellery SEZ at Baprola, whereas an IT SEZ is expected to come up at Kanhjawalla; a Manufacturing SEZ is to come up in Mundka and Ranikhera. Zones P1 and P2: P1 comprises the Narela sub-city, and covers 7,365 hectares of land that can be urbanised. It is expected that 20,000 housing units can be created by the government here. It is a hub of unauthorised colonies, with almost 500 such colonies. It has a large number of industrial units, and an area of 477 hectares will be developed here. An Integrated Freight Complex is being developed here. The Plan also projects a work force of 6 lakhs for Narela sub-city, whereas 7 lakhs workers are projected for P2 Zone. The projected population is almost 20 lakhs.

4 4 of 5 22/04/ :18 Change in Land Use (CLU) Norms: The Delhi Master Plan allows mixed land use in many areas of Delhi, to ensure that people can engage in commercial activities near their residences, to reduce the need for commuting. But this can happen only if the authorities manage the excess pressure on civic facilities, as well as the increased traffic in residential areas. DMP allows commercial activity in urban areas on notified streets, in residential areas declared commercial in the 1962 Master Plan, and in areas where commercial activity took place prior to However, mixed use of land in new residential areas will be allowed only on plots that are on an 18 metre wide road. The Plan also allows for the concept of Small Office Home Office (SOHO), to help professionals working from their homes. It also allows IT parks in industrial areas, and has increased the Floor Area Ratio (FAR) from 120 to 150. Not many in Delhi are happy with the decision to allow mixed use of land on certain streets, as the infrastructure is very poor. The Housing Sector: Under the proposed redevelopment and land pooling scheme, house owners and private builders will be given additional FAR, to ensure more people can be accommodated in a smaller area. Jain says that private developers will be given 15 per cent additional FAR, to incentivise them to develop EWS housing. The EWS/LIG/BPL housing will be 55 per cent of the total housing, and comprise 40 sq m houses, which will be allotted by the government. All the shopping centres will have 10 per cent land earmarked for vendors. There is also a provision for group housing for the JJ clusters, that have been identified in 1,000 pockets of the City. For individual house owners, the DMP gives an option to add one more floor, for those houses which were restricted to ground plus two floors earlier. The height norms have been relaxed to 15 metres. Owners can also come together and pool land, which should not be less than 3,000 sq metres in an urban area, and 2,000 sq metres in rural areas and convert the same into apartments, with additional FAR. Space for Green Belt and Parking will have to be made available, as per norms. For such land pooling schemes, the FAR would be 1.5 times the existing limit. Government colonies will also be brought under the ambit of re-development, says the Plan. Greenfield Projects: The Master Plan will bring in almost 20,000 hectares under fresh urbanisation, but allows only group housing in these areas. The plan is to go for high-rise development. In areas close to the Metro hubs, almost 40 per cent of housing will have to be developed for the EWS category. Internal development in these areas will be done by the developers, while the master network is the responsibility of government agencies, says Jain. DMP and Unauthorised areas: The Delhi Master Plan will bring the unauthorized colonies in Delhi under its fold, by allowing almost 1639 such colonies to make layout plans, pay fees, and get regularised. This will allow a large population to get municipal services in a legal manner, and they would be able to now take advantage of planned development. Farm Houses: Delhi has a large number of farmhouses, particularly in South and West Delhi, which are likely to benefit from the new farm policy which plans to allow group housing and smaller ticket sizes for such farms. As per the Plan, farm houses which have been existing since 1990, and have minimum area of 1 acre, will be recognised. No new farm houses will be allowed in these areas; but on the outskirts of the City, new farm houses, with a minimum area of 2.5 acres, will be allowed. Read More... Dens, Not Vends A Will To Survive...And Thrive Goodness Goddess She! Master Plan For Delhi-2021 Govt Still Doesn't Net It! The Last Ride Still A PPP Dream Amicable Takeover Bride and Prejudice Rally Around Anna Choose Your Power Plan Post Comments e-paper News from Communities Sep 10, 2011 Expansion Plans for

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