More land for Housing development, Delhi`s New Master Plan 2021

The 60,000 hectares to be unlocked in Delhi under the new Master Plan could help lakhs realize their dreams of owning homes in the Capital

Sabina Saluja moved from South Delhi to Gurgaon in the late ’90s. Thanks to the Master Plan 2021 that envisages creation of five new sub- cities within Delhi, bigger than Dwarka and Rohini, her 15-year-old son can think of moving back to the Capital ten years from now. With almost 60,000 hectares to be unlocked for development/ redevelopment under the new Master Plan, reverse exodus could be a reality in the not-so-distant future.

The Gurgaon-Noida story was based on the premise of lack of availability of land in Delhi. It was the absolute dearth of land in Delhi that forced people to look for options in the periphery. The new Master Plan is likely to change all that. What one knows the NCR (National Capital Region) could soon be redefined as the NCT (National Capital Territory).
If the eight-lakh applications for 4500 DDA flats in 2008 are anything to go by, the interest likely to be generated in dwellings that may come up in these new zones of opportunity could be anybody’s guess.

For the uninitiated, the National Capital Territory of Delhi is divided into 15 zones as per the new Master Plan. Out of these A to H, P,M and K1 are in urban Delhi and J, K2, L, N and P2 fall in what is known as urban extension. Also, with the population expected to rise to 230 lakh by the end of this decade and the pro- jected housing demand pegged at more than two mil- lion homes, which means two lakh dwelling units a year (a requirement that government authorities may not be able to fulfill), the new Plan seeks to focus on public-pri- vate partnerships and has a provision that provides for entry of private developers in the acquisition and develop- ment of `new’ Delhi land.

“We require 15 lakh dwelling units by 2020. The government does not have the capacity or the where- withal to accomplish this task. Hence, the need for the private sector to step in,“ points out A K Jain, former Delhi Development Authority (DDA) Planning Commissioner.

Interestingly, several leading private developers have already begun acquiring land in some of these new zones.
Private equity funds are also eying these new opportunities being made available in Delhi.

“Delhi is where the end- user demand lies. Once the government agencies are free of the responsibilities from Commonwealth Games, the entire machinery would get focused on the implementation of the Delhi Master Plan 2021,“ says Ajay irector, Certes Dabas, director, Certes Realty, adding this city will attract much more investment that any other city in India, perhaps in the next 10- 15 years. If implemented well, this could turn out to be the biggest real estate opportunity of recent times.

However, the challenge here is how soon the government “facilitates the participation of the private sector through clearances and level-playing fields,“ he says. Real estate experts are of the view that the new residential opportunities that the new Master Plan is likely to lead to rationalisation of residential prices in the surrounding areas.

Delhi will throw up the largest supply of housing in the Rs 18 lakh and Rs 36 lakh price band due to the advan- tage associated with buying land cheap. Developers and investors who buy land now can afford to profitably pro- vide supply in this price band.

Delhi will compete with areas such as Gurgaon and Noida. “The largest demand lies in the mid- and affordable housing segment.

This is because of favourable land pricing. The surrounding markets are creating low-cost/affordable housing projects almost 60-80 kms away from the CBD areas of Delhi, with low infrastructure and transportation connect. The Delhi opportunity would bring back quality of life, affordability through the MPD vision of integrated sub cities,“ says Dabas.

If one were to analyse the current real estate market scenario, one will find that while Gurgaon’s residential prices have shot up and Noida prices are under check due to fresh supply in the market, the huge land supply in Delhi may see projects being launched at Rs 4,500 to Rs 5,500 per sq ft in some of these new zones due to tough competition, says Anckur Srivasttava, chairman, GenReal Property Advisers Private Limited.

Also, a 100 m urban expressway road that will originate at NH1 and cut through NH10, NH8 and go up to NH2, will be the lifeline of all these new zones. It would be what the Noida-Greater Noida Expressway is for the eastern suburbs.

A final word of caution though  the cost of approvals and infrastructure develop- ment charges will determine the final price of the residen- tial units even though raw land is cheaper than Gurgaon, adds Amit Kaicker, head of Land and Industrial Agency for North India at internation- al consultants Jones Lang LaSalle Meghraj.

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