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- This bill is a curse for RE sector... wait for some time... ppl will see its real impact...
This bill will make life tough for builders...As builders wont be able to get land very easily now..
here is DLF's KP Singh's views on this bill..
- This New Land Acquisition Bill will increase the flat cost a lot in NCR , 100% sure about it.CommentQuote0Flag
- Golden days are over for all builders in whole India..
They'll not get land cheap any more.. so they'll have to increase flat cost.. As recession already at the door.. who will afford costly flats..CommentQuote0Flag
- Originally Posted by saurabh2011This New Land Acquisition Bill will increase the flat cost a lot in NCR , 100% sure about it.
I agree that the cost of the flat would increase due to this in NCR, However it would not increase exponentially and rather quality & facilities would come down drastically.
2nd point, Govt. will acquire land only for basic infrastructure and would ask builder & corporates to buy land directly from farmers/people. This model is already being used by Harayana Govt.CommentQuote0Flag
- The People who have bought in projects where Farmers have NOT created any issues....YOU HAVE HIT THE JACKPOT....as probably you have bought at cheapest rates possible
For People who have bought in projects where FARMERS have not yet settled down...BE READY TO PAY MORE..
One thing is CERTAIN..Prices will ONLY HEAD NORTH...
I can assure you that Goverments will DEFINATELY INCREASE F.A.R....This is something which is in their hands..
I expect F.A.R To go higher...so densities of newer projects will GO UP
As number of flats per acre will increase..the BURDEN of higher rates will be shared by many...
So basically...Buyers will pay more for more dense projects.
Also..Builders will use this to increase prices EVERYWHERE...remember..Builders are more or less same...everywhere
NOIDA EXPRESSWAY...Expect prices to go upto Rs.5000-6000 psf ACTUAL Transaction rate within 2 years
GREATER NOIDA MAIN CITY.....Within 2 Years...Rates approx 3500-4500 psf
NOIDA EXTENSION...Within 2 years..rates approx...3000-3500 psfCommentQuote0Flag
- Originally Posted by IMAKGUPTAI agree that the cost of the flat would increase due to this in NCR, However it would not increase exponentially and rather quality & facilities would come down drastically.
2nd point, Govt. will acquire land only for basic infrastructure and would ask builder & corporates to buy land directly from farmers/people. This model is already being used by Harayana Govt.
In case builder will buy land directly from farmers.. .than cost of flat will be high as builder will pay market rate to farmers…other internal development will be very bad shape… you will see high building in center of farmland and 4 side “Sarso ke Khet”.. and one kacchaa road to your project.. this is what the situation in Gurgaon in some new sectorsCommentQuote0Flag
- Originally Posted by ashokyadavGolden days are over for all builders in whole India..
They'll not get land cheap any more.. so they'll have to increase flat cost.. As recession already at the door.. who will afford costly flats..
Affordable NCR areas even after increasing the cost will be clear cut Winner I think. After Costly Land it is must that flat cost will increase every where. In good location if at this time flat cost 45L and new affordable area 8-10 KM far from there if cost 30 Lac then after land cost increase that 45 Lac will become 60 Lac and that 30 Lac will become 40 Lac. and hence potential buyers have to shift towards affordable areas and hence affordable areas will be clear cut winner after increasing cost. RE only work on Demand & Supply. Buyers of costly segment of more than 70Lac+ is always on lower side and after increasing cost it will becomes more lower.CommentQuote0Flag
- Plus Expect Short cuts and cost cutting measures by Builders...
as one thing is 100% GUARANTEED
that Builder would want to INCREASE their profits...ALWAYS
and if Land becomes expensive..then they have 2 options:
1. Increase density and Loading
2. Cut costs on Construction and Finishing
And in this scenario...Plots are the BEST investment...as you get Land...which has become very expensive due to this BillCommentQuote0Flag
- Investment in plots is always a winner , par plots khareedne ke baad aalag tarah ki tension rahte hai, sabme utna kaleja nahe hota hai.CommentQuote0Flag
- Land Acquisition Bill: Experts weigh pros and cons
The cabinet has given its seal of approval for the Land Acquisition and Rehabilitation Bill . Confirming the same, rural development minister Jairam Ramesh said the Draft Land Bill will be placed in current parliament session.
The landmark bill proposes strict norms for compensation and rehabilitation and also restricts government's power to acquire land for private projects. So how is India Inc reading this bill? While, the bill brings some relief in the form of transparency, it leaves a major lot of corporates unhappy.
"The rehabilitation and resettlement (R&R) clause will lead to a 50% increase in market costs," says Pankaj Bajaj, president of the Confederation of Real Estate Developers' Associations of India (CREDAI). To which, B Muthuraman, president of the Confederation of Indian Industry (CII), adds that the total cost involved could turn out to be a big negative. The bill, according to him, has gone overboard on costs of rehabilitation and the industry will not be able to afford to buy land.
Calling the R&R clause almost like an extortion racket, Niranjan Hiranandani, managing director of Hiranandani Constructions said, "I think it is a nonsensical position to take. Ultimately, we need a balance wherein we satisfy all the stakeholders in this case. The government is trying to satisfy stakeholders, but at the cost of development. That is the problem."
The bill does come with a few positives too. "It combines both land acquisition and resettlement and rehabilitation, providing rehabilitation and resettlement package for land owners and for people who are landless. Also, the government continues to have a predominant position in terms of purchase," Muthuraman said.
FICCI welcomes the central feature of the bill, its secretary general, Rajiv Kumar said. "According to that the government will leave it largely to the private sector to acquire land directly and will not interfere. We still feel that some of weaknesses would be addressed when it is tabled in parliament," he pointed out.
However, to Arun Nanda executive director at Mahindra & Mahindra the bill is too populist in nature.
Below is the edited transcript of the interview. Also watch the accompanying videos.
Q: The cabinet has approved the Draft Land Rehabilitation and Acquisition Bill. Are you guys already pulling out the black flags, the black arm bands?
Bajaj: We have mixed feelings about this. On one hand, we are happy that there is going to be transparency, the antiquated Land Acquisition Act is going to be replaced. There is not going to be compulsory land acquisition. And if there is going to be, farmers are going to get good compensation for that.
At the same time, there is another side to this point, there is a dire need for affordable housing in large numbers in this country. And that cause is not being served at all. The resettlement and rehab has been brought under the ambit of even private market transactions. Our back-of-the-envelope calculations show that it’s going to lead to about 50% increase in the cost of a land. And that’s not a good news.
Q: We understand hat the revised draft bill was sent to the cabinet. There have been some crucial changes. A change has been made in terms of compensation. The earlier draft bill had suggested that in rural areas the compensation should be atleast six times the market price. That has been brought down to four times the market price in rural areas and twice the price in urban areas. Are you feeling better now that six has become four?
Hiranandani: Yes and no. The reason is very simple; unless one does not read the fine print, one does not know what has happened and how this thing is going to get implemented.
The issue is very simple. At the end of the day, land is the resource which is required for the purposes of development, whether it is for power projects, roads, highways etc. So, the question of compensation is not the only issue.
Are we going to be able to get speedy acquisitions and will this react favourably with the farmers and other community? That is also very important. if it satisfies them, atleast one angle is covered.
Second, it is disastrous. Even if a private developer acquires land on a compensation, on an open market basis, after taking into consideration everything then again he has to go for R&R, if it is beyond 100 acres. Now that R&R question can become almost like an extortion racket.
Q: We had industry actually opposing this particular issue of rehabilitation. We understand that the revised land bill, which is now being presented and this is no confirmation on whether this will go through as is, has infact said that reduce mandatory R&R limit to 50 acres versus 100 acres in urban areas. So, they have made it even harder for you.
Hiranandani: I think it is a nonsensical position to take. Ultimately, we need a balance wherein we satisfy all the stakeholders in this case. The government is trying to satisfy stakeholders, but at the cost of development. That is the problem.
- These are the features of the Bill:
1) Consent of 80 per cent of people mandatory except where land is acquired for public purpose.
2) Public purpose is defined as land use for strategic purposes, infrastructure and industry.
3) Consent not mandatory when land is acquired by the government t for its own use.
4) Urgency clause to be invoked in rarest of rare cases like national defence.
5) Different land acquisition norms for rural and urban areas.
6) States are free to have their own land acquisition laws.
So as per point 4/6... Where do we stand for Noida/G.Noida current case.??? Now UP Govt can have own land bills?CommentQuote0Flag
- If this Bill is implemented then housing in india will become much expensive than even developed countries.
Also this bill is going to encourage farmers and even the existing projects will be impacted badly.
Govt. is just worried about the vote bank and least bothered about tax paying janta...CommentQuote0Flag
- My take on the situation is that Congress politicians have cornered a lot of RE including land using money generated from 2G scam to CWG to everything else in last 7 years. Now they want to boost the RE prices even more before they cash out.
Master plan 2021 of Delhi came in feb 2007. Some well known Congress politicians have been buying land non-stop in outer Delhi area even before the Master Plan came out but nothing has been launched in that area so far. Clearly hoarding of land has been going on.
UP elections are a side issue here or is like killing two birds with a stone.
If the bill is passed, then middle class or service class people can pretty much forget about owning a home in Delhi NCR.CommentQuote0Flag
- politicians have acres and acres of land....Mulayam singh..who is actually just an MP is living in a Ministers Bunglaw in New Delhi....
Now with Communalism completely shrugged off by vote bank....the LATEST Manifest material is SCAM
Land issue is the vote bank mantra now.
Middle class Tax payers will be treated like stray dogs untill unless they themselves become VOTE BANKS..
The Day Service class Junta becomes a Prominent Vote Bank...Netas will think about them....
Untill then ....Forget about any benefits
This is what common man gets for NOT Voting...choosing to have a Nap or watch T.V on election day
The Bill if passed will definately be with the consent of Builders...an builders and govt. always go hand in hand....
Forget about the Land bill....the most imp. thing is totally ignored by all Netas...Yes you guessed it right.... A REGULATORCommentQuote0Flag
- New Bill, from HT.CommentQuote0Flag