Property rates to rise with new land acquisition bill
Bangalore- With the approval of proposed land acquisition bill, the property prices in India are likely to increase, estimate real estate experts.
The land prices and house rates are expected to increase and this is not a good progress for the real estate sector, alleged Lalit Kumar Jain, National President of Confederation of Real Estate Developers’ Associations of India (CREDAI).
Developers may find it difficult to come up with luxury projects, said Jain. The proposed bill makes it mandatory to get 80 percent consent of owners for private projects and 70 percent consent for for public-private-partnership (PPP) projects. It also stresses on hefty compensation and rehabilitation package to the landowners.
The bill which has got clearance by the Union Cabinet is not industry-friendly. It considers farmers’ compensation issue meanwhile the overall growth of the country is neglected, observes Navin M Raheja, President of National Real Estate Development Council (NAREDCO).
The land acquisition issues are estimated to reduce as a result of compensating the farmers well but the land prices would abruptly rise. Developers would not be able to find land for affordable housing projects.
Based on the consumers reaction after the land acquisition bill comes into effect, a debate in Parliament can be done before giving final approval. Knowing the response to the bill in future is very important in taking any kind of decision, said Rajeev Talwar, Executive Director, DLF Group.
Anuj Puri, Chairman and Country Head of Jones Lang LaSalle India, expects that the bill would alter the existing demand for housing projects. Land rates will be hiked and consequently, developers will pass on the additional burden to buyers. This will in turn affect the demand for residential projects.
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