APRIL 2014 INR 1250 Real Canvass - informagerealty.com...APRIL 2014 INR 1250. PREFACE New Delhi which was traditionally known for its large Lutyen’s bungalows, South Delhi farm houses,

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A STUDY ON THE MARKET ANDPOLICIES IN THE CAPITAL

DELHI-NCT

APRIL 2014 INR 1250

PREFACE

New Delhi which was traditionally known for its large Lutyen’s bungalows, South Delhi farm houses, beautiful builder floors and DDA apartments is going through a drastic change. Apart from the booming new cities of NCR, Delhi-NCT itself is witnessing an outburst of new zones being developed by organized real estate majors. A New Delhi address may have seemed like a dream from afar, but with the introduction of extended boundaries and zones of this dynamic and fast paced region; a whole new city has come to life, with housing options for all.

In the year 2007 the Delhi Development Authority (DDA) introduced the Master Plan Delhi-2021. This extended the boundaries to new zones and added a total of 97,790.9 Ha. to the existing area of NCT- Delhi. Along with extension of the NCT boundaries, DDA introduced various innovative and revolutionary policies that will have a ground breaking impact on the overall market outlook.

R Ceal anvass: Delhi-NCT, is a detailed research report on these new zones and the government policies that affect them. The report also incorporates details on the urban context and demographics of Delhi (NCT) and National Capital Region (NCR). It explains the current housing scenario, infrastructure and the future outlook for both keeping in mind the MPD-21.

The report also details out the area of the newly introduced zones with their description, merits & demerits and the real estate market dynamics that influence them.

Finally, it gives an overview of the Delhi Land Pooling Policy, Industrial Conversion Policy and Delhi Farm House Policy and their impact on the NCT and NCR market.

Real anvassC

DELHI-NCT

I NATIONAL CAPITAL TERRIOTORY (NCT) NATIONAL CAPITAL TERRIOTORY (NCT)

NCT- URBAN CONTEXT

National Capital Territory (NCT) - Delhi with net

population of 16 million in 2011, is a part of world's 1second most populous urban agglomeration . NCT- Delhi

2 2covers an area of 1,484 km , of which 783 km is 2designated rural, and 700 km urban making it the largest

city in terms of area in the country.

Five National Highways i.e. NH1, NH2, NH10, NH8 and

NH24 pass through the National Capital Territory of Delhi,

connecting it to Panipat, Ludhiana and Meerut in the

north, Ghaziabad and Muradabad in the east, Noida,

Faridabad and Agra in the south, Jaipur and Rohtak in the

west contributing significantly to the character of Delhi as

a major trading and distribution center.

MAP 1- National Capital Region (NCR)

Source: National capital Planning Board Regional Plan 2021

1 United Nations World Urbanization Prospects report (2011 revision)

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Population trends in National Capital Territory of Delhi in

the last six decades indicate that the growth rate has

reduced from 53% during 1951-61 to 21.2% during

2001-11. A drastic reduction in Delhi's decadal growth

rate has also been witnessed from 47% (1991-2001) to

21.2% (2001-11). In absolute numbers also, growth of

population of Delhi declined from 44.3 lakhs (1991-2001)

to 29 lakhs in 2001-11.

NCT- DEMOGRAPHICS

It was observed that during 1991-2001, the in-

migration including inter-district migration to rest of

NCR was 24.55 lakh and to Delhi it was 22.22 lakh.

Number of out-migrants from Delhi increased from

2.82 lakh in the decade 1981-91 to 4.58 lakh in 1991-

2001.

According to the 2011 census of India, the population of

Delhi was 16,753,235. The corresponding population 2density was 11,297 persons per km , with a sex ratio of

866 women per 1000 men, and a literacy rate of 86.34%.

NCT- Delhi is expected to contribute to about 50% of the

total additional population in National Capital Region

(NCR) by 2021.

Uban Rural16

14

12

10

8

6

4

2

0

190119111921193119411951196119711981199120012011

CHART 1 -Urban- Rural Population trend in NCT

Source: MPD -2021

52% 53% 53% 51%

47%

21%

9.1514.07

21.54

32

44.3

29.03

05101520253035404550

0

10

20

30

40

50

60

Growth Rate(%) Population Increase (Lacs.)

1951-61

1961-71

1971-81

1981-91

1991-2001

2001-2011

6.34 6.52

13.05

17.64

45.0644.2

40.78

39.82

36

38

40

42

44

46

0

5

10

15

20

1961-71 1971-81

Net Migrants (In Lacs.)

% of net migrant in growth of Population

1981-91 1991-2001

CHART 2 - Trend of decadal growth rate and net population increase across NCT

CHART 3 - Trend of net migration and percentage share of migration in total population

Source: MPD-2021Source: MPD-2021

2

Pop

ula

tio

n in

mill

ion

s

Percentage share of net-migrants in the decadal

growth of population of NCT-Delhi also declined from

45.06% in 1961-1971 to 39.82% in 1991-2001.

CHART-3 depicts the trend of migration.

NCT- Delhi - Market and policy report

II NATIONAL CAPITAL REGION (NCR) NATIONAL CAPITAL REGION (NCR)

INTRODUCTION

The four major metropolitan cities in India, namely,

Mumbai, Kolkata, Chennai and Delhi together account for

15.4% of the total urban population of India. The NCR

accounts for 7.6% of India's urban population and 2.1% of

the total rural population of India. About 4.4 % of the

India's urban population resides in NCT Delhi alone.

Regional Plan-2021 proposed a six-tier settlement

system i.e., Metro Centre, Regional Centres, Sub-regional

Centres, Service Centres, Central Village and Basic

Villages.

The following map shows the urban complexes proposed

in the NCR regional Plan 2021 and their relation with the

NCT- Delhi. All these urban complexes are being

developed to ease out the increasing population and

urban development pressure on NCT- Delhi. The NCT-

Delhi within NCR acts as a nodal island surrounded by

various smaller urban complexes which have mutual

impact on the overall development of the region. Any

form of development or policy reform within the NCT-

Delhi impacts the overall market of the region.

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4

MAP 2- National Capital Region with major Urban Complexes

Source: National capital Planning Board Regional Plan 2021


NCT

NCT AREA AND POPULATION SHARE IN NCR

National Capital Territory of Delhi (1,483 sqkms). This accounts for 4.41% of the total area of NCR.

2 State/ Districts Area Km Area Net Population Density 2 Sub- Share Population Share Person/Km

Region NCT Delhi 1,483 4.41% 1,67,53,235 36.4 % 11,297

Haryana Faridabad, Gurgaon, Rohtak, 13,413 39.95% 1,10,37,548 24 % 822

Sonepat, Rewari, Jhajjar,

Mewat, Panipat, Jind,

Mahendergarh

Rajasthan Alwar 7,829 23.34% 36,71,999 8 % 438

Uttar Meerut, Ghaziabad, 10,853 32.32% 1,45,84,234 31.6 % 1,344

Pradesh Gautam Buddha Nagar,

Bulandshahr, Baghpat

URBANISATION

NCT-Delhi is highly urbanized with 97.5% of its

population living in urban areas as against the

national average of 31.2% in 2011

The percentage share of migration from NCR States

viz. Haryana, Rajasthan and Uttar Pradesh to NCT-

Delhi consistently declined in the last three decades.

Total share of migrants from the above three states

declined from 70.65% in 1971-81, to 65.76% in 1981-

91 and further declined to 57.09% during 1991-2001

2000

4000

6000

8000

10000

12000

NCR NCT Delhi Haryana Rajasthan UP

Den

sity

(Pe

rso

ns/

sq. k

m

CHART 4 - State-wise population distribution in NCR

Source: Regional Plan NCR-2021

CHART 5 - State-wise share of area in NCR

CHART 6 - State-wise distribution of density across NCR

Source: Regional Plan NCR-2021CR-2021

Source: Regional Plan NCR-2021

UttarPradesh31.8%

UttarPradesh31.7%

Rajasthan8.0%

Haryana24.0%

NCT-Delhi36.4%

NCT-Delhi4.3%

Rajasthan24.5 %

Uttar Pradesh31.8%

Haryana39.3%

NCT Haryana SR Rajasthan SR

0

20

40

6080

100

120

140160

CHART 7 - Level of Urbanisation in Sub-Regions of NCR, 2011

Source: Census of India 2011 (Provisional)

UP SR

Sub- Region population-2011 Level of Urbanisation

1,348

11,297

8221,344

438

97.5%

43.1%

48.3%

17.8%

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III MASTER PLAN DELHI (MPD) – 2021 MASTER PLAN DELHI (MPD) – 2021

INTRODUCTION MPD-2021

The Delhi Master Plan -2021 was published in 2007 by the

Delhi development Authority (DDA) with a “vision to

make Delhi a global metropolis and a world-class city,

where all the people would be engaged in productive

work with a better quality of life, living in a sustainable

environment”.

The Master Plan incorporates several innovations for the

development of the National Capital.

A critical reform has been envisaged in the prevailing land

policy and facilitating public - private partnerships. Along

with planned development of new areas, a major focus

has been on incentivising the recycling of old, dilapidated

areas for their rejuvenation. The Plan contemplates a

mechanism for the restructuring of the city based on

mass transport.

6

2 Quotation: Delhi Master Plan - 2021


Key highlights pertaining to the housing and land policy as per the MPD-2021 are as follows:

Land policy: Public- private participation in land

assembly, development and housing through Delhi

Land Pooling Policy (DLPP-2012) and Low Density

Residential Area (LDRA) policy applicable in urban

extension zones and green belt respectively.

Redevelopment: Incentivised redevelopment with

additional FAR has been envisaged as a major

element of city development covering all the planned

and unplanned areas.

Unauthorised Colonies: Unauthorised colonies,

which are to be regularised as per government policy,

should be effectively incorporated in the mainstream

of urban development through provision of

infrastructure development, services and facilities

Source: Master Plan Delhi-2021

MAP 3 - Master Plan Delhi-2021

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IV HOUSING SCENARIO HOUSING SCENARIO

INTRODUCTION

The genesis of planned housing in Delhi can be dated

back to the pre-independence era, when the city was first

planned in 1912. After independence, the migration

increased the population of Delhi from 0.7 million to 1.7

million by 1951. Open spaces were occupied by migrants

and civic services virtually collapsed. In order to check the

rapid and haphazard growth in Delhi, the Delhi

Development Authority (DDA) was established in 1957

under the provisions of Delhi Development Act.

The development of housing projects by DDA

commenced in 1967 with construction of houses and

providing the basic amenities like electricity, water

supply, sewage disposal, and other infrastructure

facilities. The new projects undertaken were initiated

with recognition of project sites, public announcement

about the new DDA housing schemes in various

categories through newspapers and other media

advertisements, formal acceptance of the applications, a

transparent draw system for shortlisting of the applicants

and finally allotment of the property.

Some popular DDA Housing Schemes of the past include

New Pattern Registration Scheme that offers home

registration along with the property purchase, Janta

Housing Registration Scheme that offers house

registrations for the EWS (Economically Weaker Section)

category and Ambedkar Awas Yojana that alloted Janta,

LIG & MIG category flats to the SC/ ST registrants.

The Residential land is allotted to individual applicants,

the farmers whose land is acquired for development and

group housing societies through public auction.

8NCT- Delhi - Market and policy report

The population of NCT-Delhi can be broadly divided into

following housing ownership categories:

Planned Colonies

Walled City and extension (Old Delhi)

Urban Villages

Regularized and unauthorized colonies

Resettlement colonies

Jughi Jopri (JJ) clusters/ Slums

Homeless

25% of the total population resides in planned colonies

while 20% of population is concentrated in the walled city

and extension area, making walled city the most densely

populated area in entire NCT (Refer Chart 8). MPD-21

recognizes the walled city, extension zones and Karol-

bagh as “Special area”. The ownership status of

household has slightly improved since 2001 census.

68.2% of total households reside in owned

accommodation and 28% stay in rented accommodation.

The percentage of rented households has also increased.

The housing and real estate sector contributes about five

per cent to the overall GDP of Delhi.

Bridging the housing gap:

MPD-2021 projected construction of 24 Lac new dwelling

units in Delhi by 2021 taking into account the housing

shortage of 4 Lac units in 2001 and requirement of 20 Lac

new dwelling units for additional population based on 2projected population of 230 Lac by 2021. About 702 km

of area was estimated to have been built-up

accommodating about 138 Lac population in 2001 in

Delhi.

To accommodate the projected population of 230 lakh 2by 2021, it is estimated that 920 km will be urbanized

area in Delhi which means about 20-22,000 Ha. of land

will be required to be developed within the new urban

extension area.

Population of Delhi as per census 2011:

1,67,53,235 Decadal Growth Rate: 20.96% Population projected till 2017:

2,07,74,033 Housing deficit as of 2011: 5.6 lakhs 2 lakh low income migrants move into

Delhi each year 76% of people in Delhi live in

Substandard housing

Planned Colonies

Walled Cit and extension

Urban Villages

Regularized and unauthorized colonies

Resettlement colonies

JJ cluster

Homeless

"0 2000000 4000000 6000000

Population

Owned

Rented

Other

67.1

25.6

7.3

68.2

28.2

3.6

CHART 8 - Population distribution among different residential areas

Source : MPD-2021Source : MPD-2021

CHART 9 - Trend of ownership status of households

2001

2011

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The planned sectors and colonies are further segregated into different housing typologies depending on the development

format. In contradiction to its neighboring satellite townships of Gurgaon and Noida, Delhi witnesses a different and unique

housing character. Housing in Delhi can be broadly divided into the following prominent housing typologies.

The organically developed walled area, which is the oldest region in the city

Sprawling bunglows in New Delhi region popularly known as “Lutyens Delhi”, which is the least dense area

Planned plotted development in South Delhi comprising of low-rise builder floors

DDA colonies with low rise group houses and recently developed high-rise apartments dotted across the city in various

locations

Corporative group housing societies (CGHS) in Dwarka, Rohini and Narela sub cities

Unauthorised Colonies across the city along the urban villages, which form a major supply in secondary market of the

residential sector

Farm houses in South Delhi and North Delhi

Few recent high-rise developments by private developers, which form the primary market of residential sector

HOUSING TYPOLOGY

DDA Apartments:

DDA, from time to time, has been announcing schemes

through newspapers and advertisements for various

categories of flats. Till Jan 2013, DDA has allotted a total

of 3,94,738 flats (including the re-allotment of

surrendered and cancelled flats). About half the

allotments were made to the weaker sections of society

and to those belonging to mid and low income groups.

Flats allotted by the DDA are provided with essential

services like electricity, water and sewage disposal,

besides other infrastructural facilities required to make

them habitable.

The CAG report published in 2008 regarding construction

of houses by Delhi Development Authority highlighted

many loopholes in the allotment procedure and

escalation charges of 6.83 Cr per unit due to non-

availability of structural design and material delay. The

report clearly stated that DDA was falling short of

catering to increasing housing demand.

10

DDA Apartments in Jasola


Co-orporative Group Housing Societies (CGHS):

The Delhi Co-operative Societies Act, 2003 facilitates the development of housing schemes and group housing societies in

Delhi. The CGHS format holds the major share of supply in Delhi. Sub cities of Dwarka and Rohini have predominantly CGHS

apartments, which serve a better option for housing than DDA apartments. CGHS have better quality construction, efficient

floor plans and better amenities like parks and play areas.

Plotted development Delhi:

Plotted row housing is another prominent format of

residential development in Delhi. The locations with this

form of development are Greater Kailash, New Friends

Colony, Lajpat Nagar, Defence colony, Kalkaji, Pamposh

Enclave, Green Park, CR Park and a few sectors of Rohini.

Most of the plotted development colonies were leased

during the time of partition to check haphazard

development due to migration from Pakistan. The

colonies have well laid out plans and integrated open

spaces. Local private developers have built builder floors

as joint venture with the plot owner, where in the land

owner invests in land and local developer constructs a

low rise apartment building.

Bungalows in Lutyens Delhi:

Lutyens Bungalow Zone (LBZ) is the area spread over

2,800-hectare area with bungalows (houses) for

government officials and their administrative offices,

during the British Raj. The zone stretches up to Lodhi

Road in the south. The area is the least dense across the

entire Delhi City, with plot sizes ranging from

Typical CGHS in Dwarka

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500 - 1000 SY or more. Recently, Tata Housing has

announced a super luxury residential project in the heart

of national capital comprising 4-5 villas in a price range of

INR 130-170 Cr each.

Farm houses in South Delhi

In the late 80's till 2000, farmhouses gained a new recognition of being the first homes in South Delhi. This trend resulted in

firing up the land prices from mere lacs to crores. Built up areas were constantly increasing. The current estimates in most of

the dwelling units are approximately 5,000 to 30,000 SFT, where as only 1000 SFT was allowed to be constructed in 2.5 acre

plot, as per the old farmhouse policy. A few prominent locations with farm houses are Chattarpur, Satbari, Bijwasan,

Westend Greens and Sultanpur.

There are currently 2,283 farmhouses in Delhi, most of which are in Zone J. With the introduction of new Farmhouse policy

also known as Low Density Residential Area (LADR) Policy in green belt around the city, nearly 26200 acres would be

available for the farmhouses, thus increasing the supply by more than 11 times.

12

Farm houses in Chattarpur


V INFRASTRUCTUREINFRASTRUCTURE

PHYSICAL INFRASTRUCTURE

The infrastructure within the NCT-Delhi is well laid but

maintenance and increasing population has put huge

pressure on the existing road and rail network. The

NCRPB has recognised and reaffirmed that the solution of

the increasing transportation problem lies in

development of settlements outside the NCT-Delhi

metropolis at appropriate distance and providing

interconnection between Delhi and the settlements, thus

reducing the pressure on Delhi’s physical infrastructure.

ROAD NETWORK

Delhi, being the capital city, is the center of socio-

economic, cultural and political activities of the country.

The city also acts as a major center of trade and

commerce and is the nodal point for five national

highways and intercity rail corridors, carrying large

volumes of heterogeneous passenger and goods traffic.

The national highways and other major road network

carry intra city and intercity traffic traversing to and from

the different parts of the country. There has been a major

improvement in transport infrastructure in recent years

in terms of flyovers, road widening, new roads

development and development of metro rail corridors

along major routes of travel in the city. The following

maps illustrate the proposed road and rail network

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around Delhi within NCR. Some of the major under-

construction and proposed road network around Delhi

are, Urban Extension roads (UER I, II & III), Kundli-

Maneser- Palwal(KMP) Highway, Kundli-Ghaziabad-

Palwal Highway, Northern Perpheral Highway (NPR,

connecting Dwarka to Gurgaon), and Faridabad-Noida-

Ghaziabad (FNG) Highway. The government has

proposed widening of few existing roads and highways

along with many flyover projects in the pipe line. The

total road length in Delhi is 33,198 Km running across the

city according to 2012-13 socio- economic report .

RAIL NETWORK

3Survey at 43 railway stations in Delhi revealed that about

1.0 million trips were made by rail per day. Out of these

about 9% trips were intra-city while the rest 91% were

intercity trips. Thus rail network in Delhi caters as a transit

system to the intercity travelers.

METRO NETWORK

The Mass Rapid Transit System (MRTS) is an ambitious

project that aims at providing a non-polluting and

efficient rail-based transport system, properly integrated

with the road transport system. The Delhi metro is a

phased development to be integrated with other traffic

and transit systems in the city.

Metro Phase Length (Km) Estimated Cost

Phase I (2000-06) 65.1 INR 10,571 Cr.

Phase II (2006-11) 53.51 INR 8,500 Cr.

Phase III (2016) 41 INR 3,500 Cr.

Phase IV (2021) 100 -

MAP-4 Proposed transport network (Road) 2021

14

MAP-5 Proposed transport network (Rail) 2021

Source: Regional Plan 2021 Source: Regional Plan 2021

Source: Delhi Metro Rail Co-orporation(DMRC)


3 Source: City Development Plan Delhi

BALLABHGARH

FARIDABAD NEW TOWN

NOIDA SECTOR-62

NEW BUS STAND

SHIV VIHAR

LONI BORDER

NARELA

BAWANA

BAHADURGARH

NAJAFGARH

SOHNA ROAD

GURGAON SEC 56

DWARKA SEC 28

MAP-6 DMRC MRTS Master Plan- 2021

MAP-7 Power distribution network of Delhi Source: www.delhimetrorail.com

Source: www.bsesdelhi.in

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WATER NETWORK

River Yamuna, Western Jamuna Canal (a carrier of

Yamuna waters as also Bhakra waters) and the Upper

Ganga Canal, are surface water sources for Delhi. Around

446 tube wells drilled in Yamuna bed and areas within city

to meet the water requirement. Delhi's municipal water

supply is managed by the Delhi Jal Board (DJB). As of

2005-06, it supplied 650 million gallons per day (MGD),

whereas the estimated consumption requirement is 963

MGD. The shortfall is met by private and public tube wells

and hand pumps. At 240 MGD, the Bhakra storage is DJB's

largest water source, followed by the Yamuna and

Ganges rivers. Delhi's groundwater level is falling and its

population density is increasing, so residents often

encounter acute water shortage. Total Length of water

distribution line in Delhi is 11,500 km as on 2012-13. 4Delhi has an average water availability of 225 LPCD , the

distribution of the which is not uniform. Some areas get

24 hrs water supply, whereas some get hardly 1-2 hr

water supply in a day.

ELECTRICITY

Following the privatization of Delhi's power sector and

unbundling of the Delhi Vidyut Board in July 2002, the

business of power distribution was transferred to BSES

Yamuna Power Limited (BYPL) and BSES Rajdhani Power

Limited (BRPL), along the TATA power distribution system

(NDPL) and MES. The city's electricity consumption is

about 1,265 kwh per capita, but actual demand is higher.

Refer MAP- 7 for electricity distribution network.

SEWERAGE NETWORK

About 65% population is covered by sewerage system

including on site treatment by septic tanks, and sewage

generated from the remaining population is going

through a number of surface drains into the river. At

present there are 17 Sewage Treatment Plants (STPs),

equipped to treat 512.4 MGD of sewage capacity varying

from 2.2 MGD to 140 MGD.

SOCIAL INFRASTRUCTURE

Along with the physical infrastructure, social

infrastructure plays an equal role in uplifting the socio-

economic status of the city. NCT- Delhi has some of the

most globally recognized hospitals, universities and

colleges, international schools, open greens parks and

entertainment zones. A quick glance at the major social

infrastructure facilities across the city is as follows:

Health: As per available statistics, there are 23 types of

health units (facilities) in Delhi. The total numbers of

health units are 1914 and the number of beds is 30,667.

The existing bed density per thousand population in Delhi

works out to only 2.2. The World Health Organization

(WHO) has recommended a norm of 5 beds per thousand

population. It is estimated that the total number of beds

required in the year 2021 will be about 1,15,000.

Education: At present there are 2416 primary schools,

755 middle schools, and 1576 secondary / senior

secondary schools. At the higher/ professional education

levels, there are 114 colleges for general education, 8

engineering colleges, 4 universities, 7 deemed

universities and one Open University.

16

4 LPCD - Litre per capita per day


VI URBAN ZONESURBAN ZONES

ZONES IN DELHI

The National Capital Territory of Delhi has been divided

into 15 Planning Zones/Divisions as per MPD-2021, out

of which 8 zones ('A' to 'H') are in the Urban area and 6

zones 'J' to 'P' (Except 'I') are in Urban Extension/Rural

Area, whereas Zone 'O' is designated for river

Yamuna/Yamuna Front. Zone A- H, K-II and Zone M are

urbanized and saturated for any form of new

development. Land availability in these zones is scarce

and development is only possible through

redevelopment of the existing areas. The new land and

development policies are related to the new zone or

Urban extension zones. The following section describes

in detail the scope of development in these zones along

with the merits and demerits of each zone.

MAP 8 - NCT Zone map with highlighted urban extension zones

Source : Informage Realty Research

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Urban Extension Zones

The MPD- 2021 has described the zones of J to L, N & P (I &

II) for Urban Extension. These zones will be developed as

low density zones with average population density of

250-300 PPH. But the land acquisition and planned

development has not kept pace with the increasing

demands of urbanisation during the last five decades.

Moreover, the process of acquisition is increasingly

challenged by land owners due to low compensation as

compared to the market value.

Zone J

Zone Name of Zone Area (Hac.)

A Old City 1159

B City Extension 2304

C Civil Lines 3959

D New Delhi 6855

E Trans Yamuna 8797

F South Delhi-I 11958

G West Delhi-I 11865

H North West Delhi- I 5677

J South Delhi- II 15178

K K-I West Delhi- II 5782

K-II Dwarka 6408

L West Delhi III 22840

M North West Delhi-IIRohini 5073

N North West Delhi-III 13975

O River Yamuna/ River Front 8070

P P-I Narela 9866

P-II North Delhi 8534

18

Total area of Zone J as per MPD-2021 is 15,178 Ha.,out of

this 6200 Ha. area is under Regional Park and 410 Ha

under Green Belt, 300 Ha under Asola Bird Sanctuary.

Remaining area available for urbanization is 8268 Ha. It is

expected that total 20,67,000 persons will be

accommodated in this zone. The area in the zone is

predominantly occupied by the farm houses. The

development of residential areas is expected to provide

dwellings for about 4.5 Lac families of all income groups.

Merits

The zone is sandwiched between the most effluent

zone of south Delhi and Gurgaon, thus the most

preferred location for investment with high expected

returns

The zone has farm houses of 2.5 acre and with the

latest farm house policy the land owners can build

farm houses on 1 acre plot, thus the supply of farm

houses in this zone will appreciate

The zone has a reserved green belt for Asola Wildlife

Sanctuary, thus will attract recreational activities

De-merits

Limited land is available for high density residential

area

Connectivity and internal roads are not laid properly

within the farmhouses, thus further expansion of

roads as per proposed road network can be a limiting

factor in the zone

The existing land prices are very high so developers

prefer purchasing land in other peripheral zones


Zone K is located along the Zone K-II/ Dwarka sub city. The

Zone 'K' is spread across 12,439 Ha. with two sub zones

K-I with an area of 6,515 Ha and K-II Dwarka with an area

of 5,924 Ha. About 2827 Ha of area of zone K-I is in the

form of built-up area/unauthorized colonies (Residential,

Commercial & Industrial). The existing population of the

zone K-1 as per 2001 census is about 5.0 Lac. This

population of zone K-I is inhabited in 180 un-authorized

colonies and 26 villages. The scope of new development

is towards the western edge of the zone. 677 Ha. of area is

available for new development of the total zone area.

Zone K-I

Merits

The zone is close to developed area of Dwarka sub-

city and thus can fetch benefits of infrastructure and

connectivity

The zone is closest to the developed areas of existing

urbanized areas of city as compared to the other

urban extension zones thus the land prices are higher

and appreciating at much higher pace

Zone L

The zone covers an area of 22,979 Ha. with approximately

46 villages. Najafgarh is one of the major urban

agglomerations. Other settlements like Tikri Kalan,

Dhansa, Jharoda Kalan, Jasfarpur Kalan etc. are major

rural settlements. Out of the total area of 22,979 Ha.,

556.5 Ha. of land is designated as Urban Extension as per

MPD-2001 and 112.10 Ha. is proposed residential land-

use in the urban extension zone. Zone-L, beyond

Najafgarh urban area, has agricultural land notified as

urban extension area and thus falls in the purview of

Delhi Land Pooling Policy. The industrial area is proposed

towards north of the zone, along the Delhi-Rohtak

Highway.

Demerits

Najafgarh Nala possess a physical barrier towards

development of the zone K-1 The zone is proliferated with unauthorised colonies

and urban villages which brings down the overall

aesthetic and character of the zone The zone lacks contiguous land parcels for land

pooling Laying of infrastructure can be one obstacle since the

zone has unauthorised colonies and unorganized

development

R Ceal anvass

Merits

The zone has maximum supply of contiguous land for

development as compared to other zones The zone has potential of planned development and

good infrastructure facility, since large parcels can be

acquired under land pooling for development The zone shares boundaries with Gurgaon district and

is closest to the Gurgaon city, thus is likely to attract

buyers and investors from Gurgaon Proximity to airport and Gurgaon is one of the key

potentials of the zone The Zone has one of the largest urban agglomeration

of Najafgarh, which will help in the absorption of new

developments Many renowned developers have already bought

huge parcels of land

Demerits

Land prices are nearly 4-5 Cr per acre and highest,

compared to other zones

Zone- L lacks industrial land-use, as compared to

neighbouring Zone N, thus prospects of economic

activity are less

Zone N

The zone is situated on the North West part of Delhi and

mainly constitutes of rural settlements and the industrial

area of Bawana. It is connected by railway line towards

Rohtak. Urban Extension Road I is passing through this

zone. The nearest developments to Zone-N include

Rohini, Bahadurgarh and Kundli. The population of this

zone as per the census 2001 is 3,50,000. The projected

population of this zone by 2021 is about 24,17,500. The

abadies of 29 villages and the census town of Bawana

falls within the zone area. Reserved forest of 72 Ha. of

area also exist in this zone. Area measuring about 989.90

Ha. has been proposed for industry, Bawana Industrial

Area (Udyog Vihar) measuring about 606.90 Ha. has been

developed by DSIDC. Another area measuring about 383

Ha. is proposed for allotment to DSIDC for industries.

Merits The upcoming infrastructure such as KMP, UER-I,

UER-II and UER-III will definitely improve the

connectivity of the region and enhance the overall

development The zone has contiguous land parcels thus the

possibility to receive even parcels of land after land

pooling is better The zone has huge industrial zones reserved which

will attract economic activity and thus create

residential demand within the zone The land prices are on lesser side when compared to

neighbouring Zone- L Proximity to existing Rohini sub- city will impact the

connectivity, since Rohini is well connected to rest of

the city

Demerits The zone is at a distance from the existing IGI airport

as compared to Zone L

According to the past development pattern and

growth direction in Delhi, North-west part of Delhi

has always been dormant and especially Zone- N lacks

any major urban activity or urban center

NCT- Delhi - Market and policy report 20

Zone P-I

The total area of the zone is 9866 Ha. of which

urbanisable area of the zone is 7365 Ha. The remaining

2501 Ha. is under Green Belt towards northern border of

NCTD as per the land use plan of MPD-2021. As per MPD-

2021, the urban extension areas are proposed to be

planned with an overall city level density of 250 PPH and

based on the area under consideration the proposed

population is 1.62 million including that of existing

settlements. The Zonal Plan for Zone P-I delineates the

guidelines for the third urban sub-city of Delhi by DDA i.e.

Narela Sub-city. 3165 ha. of land has been earmarked for

residential use to accommodate 12 lakh population. The

abadis of 16 villages and two census towns (Alipur and

Narela) fall in the zone.

Merits

A large number of farm houses exist in this area The total area of 477 ha. has been identified for

industrial use zone out of which 247 ha. has already

been developed by DSIDC and is operational Integrated Freight Complex (IFC) covering an area of

397.81 ha. is a major economic and employment

generation centre Construction of 100 m Urban Extension Road (UER)-

II, 80 m UER-I and 60 m UER- III ROW roads for

connectivity and opening of the area is proposed

Demerits

A number of unauthorised colonies and other

developments have also come up within the zone

after announcement of the Narela Sub city The zone faces immense pressure of migrant

population influx The zone lacks significant potential of private

development as per the Delhi Land Pooling Policy,

since most of the land has been reserved under

Narela sub-city plan or acquired by government

agencies for other development purposes

Zone P-II

As per Master Plan for Delhi – 2021, P-II zone covers an

area of 8534 Ha. This zone has heterogeneous character

having rural areas, unplanned areas and few planned

areas. This zone covers a green belt area of about 1,924

Ha. (approx). The zonal development plan proposes land-

use plan and sector plans in the Zone-P II as part of Narela

Sub-city. The sub-city has been proposed with overall

density of 250 PPH for urban extension thus proposed

population is to be 19 lakhs including that of the existing

settlements.

Zone P-II

R Ceal anvass

22

Demerits

The zone is dotted with existing unauthorised

colonies and farm houses. Many local land owners

have developed colonies and residents from other

states have invested in these colonies anticipating

development

A large portion of land falls along Yamuna flood

course and reserved Green belt

The zone again lacks significant potential of private

development as per the Delhi Land Pooling Policy

Merits

About 216 Ha. of land has been proposed for

industries use, Hi-Tech/Electronic Industry along NH-1

to provide city level specialized industry and to

enhance the visual quality on NH-1 entry corridor

807 Ha. of land has been proposed for recreational use

to create a 9 hole golf course and other facilities

River front development along the Yamuna River has

been proposed. Zone - P II, is being developed as a

major recreational and activity zone, thus the land

prices will enhance along these developments and

attract large commercial activities

Sectors falling along NH-1, connecting Delhi to

Sonepat and Panipat have huge potential of

commercial and industrial development


VII REAL ESTATE MARKET DYNAMICS REAL ESTATE MARKET DYNAMICS

The real-estate market in NCT- Delhi is predominantly a secondary sales market since DDA has been been the major

developer in the city. Most prominent format of development is low-rise builder floors in plotted colonies and

unauthorised colonies. High-rise apartments are available in CGHS or new DDA group housing colonies. A few developers

have also recently started developing high-rise apartment projects across various locations in the city The land acquired by

developers for the high-rise construction is either on lease of 99 years from other authorities like DMRC, Railway board etc

(Refer Section- Primary residential real estate developments ) or under slum rehabilitation projects.

A sample size of nearly 4000 properties from across the

city was used to conduct the analysis. A thorough

secondary survey was conducted to collect the data and

analyse.

The real estate residential market of Delhi can be divided

into various sub-micro markets depending on the

location and characteristics. The overall market dynamics

across various sub micro markets is as follows. Refer

MAP- 9 for the sub micro market locations.

MAP 9 - Sub micro markets in Delhi

SECONDARY RESIDENTIAL REAL ESTATE MARKET

Source : Informage Realty Research

R Ceal anvass

Supply TrendThe resale market is flooded with 3BHK units , 45% of

total market supply, followed by an equal share of 2BHK

and 4BHK units. It was observed that the 3BHK unit

format is available in DDA colonies and CGHS colonies.

1BHK and 2BHK apartments are available in unauthorized

colonies and urban villages.

The sub micro market wise unit size variation is as follows:

CHART 11- Unit Size variation in High-rise apartments

CentralDelhi

DwarkaDelhi

EastDelhi

NorthDelhi

SouthDelhi

WestDelhi

1BHK 2BHK 3BHK 4BHK

0

500

1000

1500

2000

2500

3000

0

500

1000

1500

2000

2500

3000

CentralDelhi

DwarkaDelhi

EastDelhi

NorthDelhi

SouthDelhi

WestDelhi

1BHK 2BHK 3BHK 4BHK

CHART 12 - Unit Size variation in Builder Floors

3500

The variation in unit size clearly indicated that Dwarka

has the largest unit sizes available in high-rise

development since many CGHS have larger saleable area

as compared to DDA apartments and builder floors.

In terms of builder floors South Delhi has the maximum

average saleable area followed by West Delhi. Dwarka

has very less supply of builder floors as compared to

other zones.

Central Delhi is known for its luxurious villas and bungalows in Lutyens Delhi while South Delhi is known for its sprawling

farmhouses in locations like Chattarpur and Sultanpur. Average Unit Size of farm houses ranges from 4000 SFT to 9300 SFT.

CHART 13 - Average unit size of Villas

10000

8000

6000

4000

2000

0

Central Delhi East Delhi North Delhi South Delhi West Delhi

3% 5%

24%

45%

23%1BHK

2BHK

3BHK

4BHK

5BHK and more

24

CHART 10 - Unit type split across high-rise apartments and builder floors

Source: Informage Realty Research

Source: Informage Realty ResearchSource: Informage Realty Research



Price and rental trends:

Central Delhi is the costliest location in Delhi with average sale price of INR 33,613 PSF followed by South Delhi and North

Delhi respectively. Dwarka is the most affordable location although it has good infrastructure and connectivity, primarily

due to the absence of builder floors and the CGHS scam.

The average rent in North Delhi and East Delhi is parallel at INR 24 PSFPM for a 1800 SFT typical 3BHK apartment or builder

floor in a decent location. The rent in central Delhi is the highest at INR 43 PSFPM followed by South Delhi at INR 29 PSFPM.

The rent in south Delhi is on a higher side as compared to other locations due to housing demand of the young students and

working population. South Delhi enjoys presence of JNU, IIT Delhi and proximity to the newly developed city of Gurgaon.

CHART 14 - Zone wise secondary sale price vs rent for a typical 1800 sq ft 3BHK apartment

Central Delhi East Delhi North DelhiSouth Delhi West Delhi Dwarka

33613 18858 18661 14680 10593 7953

43 20 29 21 26 14

Average Price(PSF)

Rent (PSFPM)

0

5000

10000

15000

20000

25000

30000

35000

40000

CHART 15 - Unite type wise Average Price

Central Delhi Dwarka East Delhi South DelhiNorth Delhi West Delhi

34,227 7,927 21,664 15,808 20,122 10,285

31,614 7,991 16,373 7,943 12,943 11,283

1,28,362 49,955 29,577 58,679 39,090

Building floor

Highrise

Villas

Farm house

0

20000

30000

40000

50000

60000

70000

10000

Central Delhi:

Central Delhi is the prime location and has been ranked

world's 8th costliest location in terms of property prices

per SFT. Central Delhi constitutes of areas like Connaught

place, Karol Bagh, Chanakyapuri, Pusa Road, Rajendra

Place and Paharganj. Central Delhi includes India's most

prime and luxurious properties in the Lutyens Delhi.

Avg. Price PSF Avg. Rent PSFPM

01020

30

4050

60

70

8090

0

10000

20000

30000

40000

50000

60000

Chanak

yapuri

Connaugh

t Pla

ce

Pusa R

oadRaj

endra

Pla

ce

Karo

l Bag

h

Pahar

ganj



- - -- - --11,260

-

CHART 16 - Average resale price vs average rent in Central Delhi


R Ceal anvass

Avg

. Pri

ce P

SF

Avg

. Ren

t P

SFP

M

Avg

. Pri

ce P

SF

0

5

25

30

10

15

20

0

5000

10000

15000

20000

25000

0

5

25

30

10

15

20

35

40

0

10000

20000

30000

40000

50000

60000

70000

80000

East Delhi:

Also referred to as 'Yamuna Par' or 'Trans Yamuna' by

localites, East Delhi has been divided into three

subdivisions Gandhi Nagar, Preet Vihar, and Vivek

Vihar. East Delhi is dotted with many unauthorized

colonies, Urban Villages and few DDA colonies.

North Delhi

North Delhi constitutes of old Delhi region of walled city,

civil lines, Kashmere Gate, Sarai Rohilla and new zones P- I

and P- II. DDA has acquired land for proposed Narela Sub

city in the region.

South Delhi

South Delhi is considered to be the most affluent of all residential districts of Delhi. South Delhi is the most preferred

location in terms of property deals in Delhi. It constitutes of many prime residential colonies such as Greater Kailash, Lajpat

Nagar, Hauz Khas, Green park, Saket, Malviya Nagar, Kalkaji. Most of these colonies were developed during the time of

partition and migration from Pakistan. The colonies have well laid out plans and integrated open spaces. Local private

developers are building builder floors as joint venture with the plot owners, where in the land owner invests land and local

developer constructs the G+2 structure. South Delhi Is also known for its luxurious farm houses in Chattarpur ,Sultanpur,

Asola etc.

5000

10000

15000

20000

25000

0

30000

35000

40000

10

20

0

30

40

50

60

26

New A

shok N

agar

Dilshad

Gar

den


CHART 17 - Average resale price vs average rent in East Delhi



CHART 18 - Average resale price vs average rent in North Delhi

Chandni C

howk

Kashm

ere G

ate

Rana P

rata

p Bag

h



CHART 19 - Average resale price vs average rent in South Delhi



Avg

. Pri

ce P

SF

Avg

. Ren

t P

SFP

M

Avg

. Pri

ce P

SF

Avg

. Ren

t P

SFP

M

Avg

. Pri

ce P

SF

Avg

. Ren

t P

SFP

M

West Delhi

West Delhi constitutes of new areas under Zone–N, Zone–L and Rohini sub city. West Delhi has witnessed slow development

owing to development in other parts of Delhi and other development of satellite towns of Gurgaon, Noida and Faridabad.

With the latest Delhi Land Acquisition policy, also known as Delhi Land Pooling Policy, many new zones have been released

for development by the DDA in PPP mode. A sudden shift in the market has been witnessed in transactions of land in these

new zones and lead to property price appreciation by many folds. Detailed analysis of the Delhi Land Pooling Policy has been

done in the later sections of the report. The ratio of sale price and rent is very high as compared to other parts of the city.

2000

4000

6000

8000

10000

0

12000

14000

16000

18000

5

10

0

15

20

30

25

Dwarka

Dwarka is the sub-city developed by DDA in Zone K-1. The sub-city provides housing for about 500,000 families. Many of

these families have not yet been able to move into their flats because of impending court orders which have so far failed to

give relief to the thousands of people who are still stranded as a result of a C.G.H.S scam. The city has well laid roads

network, metro connectivity, nearness to airport and close to the Gurgaon city. Dwarka has many high-end CGHS and DDA

colonies.

Parsvnath Paramount by Parsvnath Developers

The project is located in Subash Nagar New Delhi, it is an under construction property presently trading at a resale price of

INR 12,500 PSF and offering 140 units of 3BHK and 4BHK ranging from 1690 SFT to 3965 SFT. Parsvnath is developing this

project on a 5 acre site which was auctioned by DMRC.

Construction Image Perspective


CHART 20 - Average resale price vs average rent in West Delhi

PRIMARY RESIDENTIAL REAL ESTATE MARKET


R Ceal anvass

Avg

. Pri

ce P

SF

Avg

. Ren

t P

SFP

M

Winter Hills by Umang Developers

It is an under construction property by Umang Developer located in Dwarka Morh. A total of 384 units of 2BHK, 3BHK and

4BHK, with area ranging from 1153 sqft to 2047 sqft are being constructed. All the units available with the developer have

been absorbed and the project is currently available at resale price of INR 7500 SFT. The site has been acquired on 99 years

lease from the DMRC .

Capital Greens – I,II and III by DLF

DLF is developing this project and it is almost ready for possession, the project is on 38 acres of land which was purchased

from DCM MILL and Swatantra Bharat Mills at a price of INR 1600 Cr in 2007. Project was launched in 3 phases, and is

presently available at a resale price of INR 12000 PSF. The third phase of the project was launched in 2009 with 152 units of

4BHK ranging from 2885 SFT to 3015 SFT.

La Tropicana by Parsvnath Developers

The project is located in Civil Lines, New Delhi and is currently trading at a resale price of INR 14000 PSF and offering 507

units of 3BHK, 4BHK and 5BHK ranging from 2530 SFT to 4835 SFT. Parsvnath is developing this project on a 16.8 acre site

taken on 99 years lease from DMRC.

Perspective


NCT- Delhi - Market and policy report 28


M2K Victoria Gardens

M2K Victoria Gardens, located in Model Town New Delhi, is a

residential project by M2K. Victoria Gardens comprises of

approximately 456 units with unit size ranging from 1950 SFT

to 3485 SFT. The project was launched in March 2008 at a pre-

launch price of INR 11000 PSF and currently is available at

developer BSP of INR 14300 PSF onwards. The project was

completed in Sep’13.

King's Court by DLF

DLF King's Court, located in Greater Kailash-II, is a residential project in the luxury segment. DLF King's Court comprises of

4BHK and 5BHK units ranging from 5422 SFT to 7251 SFT on a 2.46 acre site. The project was launched in July'11 and is

completely absorbed, currently trading at resale price of more than INR 40000 PSF. King's Court is offering amenities such as

a playground, gardens, gym, swimming pool, 3 tier security, power back-up, CCTV surveillance, parking etc..

Queen's Court by DLF

DLF Queen's Court, located in Greater Kailash-II, is a residential project in the luxury segment. The project is being

developed on 1.15 acre site and comprises of 4BHK and 5BHK units ranging from 5513 SFT to 8500 SFT. The project is

currently trading at resale price of INR 35000 PSF. Queen's Court is offering amenities such as Piped Natural Gas

connection, gym, 3 tier security, power back-up, CCTV surveillance, reading lounge, parking etc.

Navin Minar by Raheja developers

The project is located in Kathputli Colony promoted by Raheja developers . This project is the first-of-its-kind, being

developed as an in-situ Slum Re-development Project at Kathputli Colony spread over 5.22 Ha., near Shadipur Depot by

Delhi Development Authority. The project proposes construction of 2800 EWS units for the squatter families of Kathputli

Colony. Besides redevelopment of this colony, a high-end residential complex with an area of 3 Lac SFT saleable area and

2.80 Lac SFT of commercial complex are also proposed. The project is in soft launch stage and is expected to be launched by

October 2014.


Perspective


R Ceal anvass

VIII POLICY OVERVIEWPOLICY OVERVIEW

DELHI LAND POOLING POLICY

The land pooling policy is the latest development in the

policy landscape of Delhi. The Land Pooling Policy is an

extension of Town Planning (TP) schemes on a much

larger scale, where land owners transfer the land to

Centralized Land Pooling Agency, which later transfers

ownership of part land back to the owner for self-

development. The land retained by the Pooling Agency is

used for providing the infrastructure in the region. The

policy emphasizes to carry out development in urban

extension areas by involving private parties.

The policy is applicable in the extension zones only with

minimum pool of 2 Ha. land parcel.

This policy is the final chance to own a land parcel within

the Delhi state limits and has been debated since long. In

anticipation the builders have already started to acquire

huge land banks in the possible areas of NCT. This policy

will thus lead to rapid unlocking of huge land bank and

release the pressure of urbanization from Central and

South Delhi towards the peripheral regions . The private

developers have welcomed the move as they are now

allowed to develop residential units within NCT region.


The key features of policy are:

I. The two categories of land pooling are Category 1 for 20 Ha and above and Category II for 3 Ha to less than 20 Ha.

II. The land returned to Developer Entity (DE) in Category I (20 Ha and above) will be 60% and 40% of the land

retained by DDA

III. The land returned to Developed Entity (DE) in Category II ( 2 Ha to less than 20 Ha) will be 48% and land retained

by DDA will be remaining 52%

IV. The distribution of land returned to DE (60%) in terms of land use in Category I will be 53% Gross residential, 2%

city level Public /Semi-Public and 5% city level commercial. The distribution of land retuned to DE (48%) in terms

of land use in Category II will be 43% as gross residential, 2% for PSP and 3% for commercial

V. The FAR norms for the land developed in the purview of this policy have been revised. Under this policy a

maximum of 400 FAR for Group Housing to be applicable on net residential land which is exclusive of the 15% FAR

reserved for EWS Housing

VI. Net residential land to be a maximum of 55% of gross Residential land

VII. FAR for City level PSP to be 250 with maximum ground coverage of 40% for both residential and commercial

development

VIII. Density of 15% FAR for EWS population shall be considered over and above the permissible Gross Residential

Density of 800-1000 pph

Advantages of land pooling

Promotes efficient, equitable and sustainable land development in the urban fringes

Provides opportunity for a planned development of the land and infrastructure network

Profitable to land-owners as the 40-60% of the developed land is handed back to them

Category

of land

Assembly

(Ha)

Land

Returned

to DE

Land

Retained

by DDA

Land Returned to Developer Entity Total

BUA

Max

PopulationGross Residential

City Level

CommercialCity Level PSP

Land

(Net

Land)

Built up Area*

(Ha)Land

BUA

(Ha.)Land

BUA

(Ha.)

% HaResi.

BUA

Facilities

BUA% Ha Ha % Ha Ha

20 Ha &

above.

12 Ha

(60%)

8 Ha (40%)53

10.6

(5.83)26.8 4.65*** 5 1.0 2.5 2 0.4 1.0 34.95 15518**

2-under

20 Ha

0.96 Ha

(48%)

1.02 Ha

(52%)43

0.86

(0.473)2.17 0.37*** 3 0.06 0.15 2 0.04 0.1 2.79 1256**

- *Land pooled for the illustrative example is assumed at 20Ha for Category 1 and 2Ha for Category II.

- *Residential BUA included 15% of BUA for EWS housing.

- **Calculated on maximum density of 1000 persons per hectare of gross residential land.

- ***Calculated as per MPD 2012 norms of 3 sq m per person for facilities.

R Ceal anvass

Challenges and opportunities with Delhi Land Pooling Policy

Implementation of Public Private Partnership module in

land acquisition:

The DLPP talks about the Pubic Private Partnership in

developing the new sub cities in and around present

urban Delhi. But as we have witnessed earlier the

government agencies are involved only until approval

states and later implementation and execution for such

PPP schemes is dealt by private bodies or companies.

However, the Delhi Development Authority has been a

very pro active department and is expected to equally

participate along with private developers towards the

holistic development of the zones.

Bigger role for Local Urban bodies:

The political will and promptness of the governing bodies

is equally important to achieve the goals set forth in the

Delhi Land Pooling Policy. The land pooling policy

requires the farmers and land owners to pool in land

parcels for overall development of the region. It is

important for political leaders to encourage and motivate

the land owners to come together and pool their land,

thus cutting down the agitations and delays. Also the

political leaders need to ensure that the land owners

receive the due market price against the land parcels

acquired by authorities and developers.

Timely delivery of external support infrastructure:

The provision of external infrastructure like roads,

electricity, water supply, schools, hospitals, etc. fall in the

purview of Delhi Development Authority. The success of

the DLPP is dependent on the pace with which the

authority manages to provide the infrastructure. The

developers may receive the land back for development

after pooling but until and unless the external

infrastructure is in place, the projects may not succeed in

the market.

Fragmented land:

The agricultural land in the new zones is fragmented and

it is difficult to get contiguous land parcels. Also the

willingness of the land owners to surrender their land is

another precarious subject. It is important to also

determine what policies would be followed if the

surrendered land parcels are less than 2 Ha.

The influence of LARR Bill:

The zonal development plans have earmarked various

Land-uses within the new zones, but it is still unclear

whether the land parcels falling under reserved

infrastructure will be acquired under the Land

Acquisition Rehabilitation and Resettlement (LARR) bill, if

not pooled as per DLPP. Also the procedure for acquiring

the land under LARR is in itself a debatable aspect as it has

been cleared at the central government level but requires

state level clearance. Thus delays are likely if the land

needs to be acquired as per the LARR act and put further

financial burden on the development authority.

Judicial allotment of Land after pooling, beneficial for

all:

The policy states that the land owners will be given back

land parcels within the radius of 5 km from the original

parcel. However, the key question remains unanswered

whether the land owner will get the reallocated land with

the same level of connectivity and development

potential. The DLPP also talks about TDR but whether the

TDR generated in a particular zone can be utilized in that

zone only or in some other zone is also not clear.


The NCR real estate market comprises of various sub-

markets of Delhi, Gurgaon, Noida, Greater Noida,

Faridabad and Ghaziabad. Among these, Delhi has the

least supply in terms of private development, owing to

the development norms that prevent any private

development within the NCT-Delhi. But with the

introduction of DLPP, huge land parcels will be available

for private developers and land owners to construct

projects. This will have a direct impact on the prevailing

NCR market. Gurgaon Market is expected to be less

effected, since it in itself is a huge and unique market

which caters to all formats of real estate. It is also

sprawling towards South which has sufficient influx of

people working in Manesar, Bhiwadi and Dharuhera.

Noida market is likely to witness direct impact as it is

close to Delhi and suffering huge inventory overhang.

Similarly Ghaziabad market might suffer negative impact

Impact of DLPP on the overall NCR market

once the policy is implemented and development gains

momentum.

The smaller markets like Kundli, Bahadurgarh, Najafgarh,

Faridabad etc. might also witness a slowdown in sales as

these were acting as a cushion till date, absorbing the slip

over demand of Delhi.

The challenge lies with government agencies to

understand the supply-demand dynamics of the market

and check haphazard development. Authorities have

witnessed successful land development schemes in past,

like Town Planning Schemes in other states of Gujarat and

Andhra Pradesh, but this is the first time that any

government agency will exercise land pooling on such a

massive scale.

DELHI FARM HOUSE POLICY/LDRA POLICY

The Delhi Master Plan 2021 also referred as MPD -2021

defines that the land up-to the depth of one peripheral

village revenue boundary along the border of NCTD,

wherever available, would be maintained as Green Belt.

This Green Belt will have certain activities like farm

houses, permitted and will be developed as a Low

Density Zone. This policy permitts development of farm

houses on plot size of 0.4 to 1 acre per farm house and

FAR of 0.20 of land area and additional 0.10 on payment

of additional charges. One Dwelling unit along an EWS

unit of minimum 60 sq mt built-up is allowed per farm

house.

23 villages have been declared as the Low Density

Residential Area (LDRA) in Urban Extension by the

Ministry of Urban Development; vide S.O.No. – 1744(E),

on 18th June, 2013.

MAP 10 -Delhi master Plan map highlighting green reserved zones

Source : MPD- 2021

R Ceal anvass

MAP 11- Industrial areas of NCT- Delhi

In the present day market scenario the land prices in

Green belt range from INR 3 to 5 Cr per acre. After

notification of reserved green belt the land prices have

increased many folds. The number of transactions has

also increased between land owners and investors as well

as developers. Individuals and developers have shown

equal interest in land for either self-use or development

of a farm house community/low density plotted

development.

There are currently 2,283 farmhouses in Delhi, most of

which are in Zone J. With the introduction of new

Farmhouse policy also known as Low Density Residential

Area (LADR) Policy in green belt around the city, nearly

26200 acres would be available for the farmhouses, thus

increasing the supply by more than 11 times.

At present the locations of Chattarpur, Sultanpur and

Asola have farm houses with approach road less than 10

feet at places. These farm houses were notified as

unauthorised and any form of transaction or

construction was prohibited. But the new farm house

policy states norms for regularization of existing farm

houses of South Delhi.

INDUSTRIAL LAND CONVERSION POLICY

According to the government notification on 13th May

2013 , the norms for development on industrial land were

issued.

A minimum plot area of 3000 sq m abutting a 24 m ROW

or above shall be eligible for residential use (Group

housing) within development control norms of group

housing along with incentive 1.5 times, over and above

the existing FAR of 2 for Group housing subject to

payment of conversion charges, as prescribed by the

authority from time to time. 15% of the permissible FAR

can be utilized for required commercial and PSP activity

for the residing population. Sub-division of larger plots

and amalgamation of smaller plots to achieve the

required plot size is also allowed.

Industrial areas such as the ones in Okhla, Patparganj,

Mayapuri and Naraina are surrounded by residential

areas preferred by house hunters. The demand has

pushed property prices up. A 2BHK flat, for instance, sells

for anything between INR 60 lakh and INR 1 Cr in these

areas. If industrial plots were to be unlocked, prices might

see a slight dip or stagnation.

The policy paves way for development of service and

studio apartments. The development is restricted to

average 2BHK unit size. This policy will bring in residential

supply in the Delhi market to ease out the increasing

demand to certain extent. Service sector industries such

as IT would benefit if employees could live and work at

the same place instead of traveling great distances


Source : MPD - 2021

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