STATUS UPDATE - NILP to boost realty market
Experts are optimistic about the impact of the new set of pro-real estate policies. Rohan Sharma, associate director, JLL Research & REIS, says that the policy will steer clear of some of the obstacles that were earlier in place in the process of land acquisition in and around Gurgaon. He says, “The licencing mechanism of `first come, first serve' has led to inefficient utilisation of land. Out of a residential-use designated sector, only 20 per cent of the net planned area of the sector was allotted for group housing licences. This kept large lands within such areas underutilised.“
NILP 2015 also recognis es the pitfalls that exist in con solidating the minimum of 100 acres of land that are required for integrated residential town ships. Hence, the limit has been reduced to 25 acres. This will al low more developers to enter the market. It has become a lev el-playing field for smaller de velopers.
Sanjay Dutt, managing direc tor, India, Cushman & Wake field, says, “The New Integrated Licensing Policy (NILP), 2015 is expected to incentivise devel opment on smaller land parcels as it includes the provisions for bringing down of limit for plot ted colony from 100 acres to 25 acres. It is likely to result in the supply of smaller andor afford able projects in the region.“
Developers have also ex pressed satisfaction over the policy and hope the new move will boost realty sector, espe cially the affordable segment in and around Gurgaon. Amit Modi, director, ABA Corp and Vice President CREDAI West ern UP, says, “The New Inte grated Licensing Policy from Haryana Government is cer tainly going to benefit the farm ers and developers. This new policy will boost the confidence of all stakeholders as it offers several concessions to the realty sector, including reduction of area norms from 100 acres to 25 acres for plotted colonies, enhanced floor area ratio (FAR) and increase in the density of population to 250 people per area (PPA).“
Aman Nagar, director, Paras Buildtech, shares similar views, “Looking at a sizable number of infrastructure development projects that are stuck in and around Gurgaon only due to land acquisition issues, the NILP can prove to be a game changer. The revolutionary policy is likely to give a major boost to infrastructure projects in townships that are being developed under Gurgaon-Manesar master plan and Sohna urban development plan.“