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In order to cater to the growing housing needs in Delhi region, the Delhi Development Authority chalked out land pooling policy under which various regions were to be redeveloped and provide for affordable housing. However, one of these regions which got matured way before its time was L-Zone. Sensing the price speculations, several developers acquired land and sold pre-launched projects. While the development plan of the area was still under-consideration, buyers and investors realized that they have been duped as the land pooling policy under which the area was to be developed was still facing bureaucratic hurdles. So has the situation changed in past six years? Not, so much.
What is the current status?
The Delhi Land Pooling Policy has got approval from the housing ministry and the Delhi Development Authority has launched an online portal for facilitating the process. According to the policy, the restricted floor area ratio (FAR) has limited the usable FAR to 200 as against 400 proposed earlier, due to water shortage. Also, Zone L with gross area of 11,690 hectare and vacant area of over 8,000 hectare presents the largest chunk of development opportunity. According to the policy, landowners can register through an online application process and a minimum of 70 per cent of land of the developable area of a particular sector, free of encumbrances is required to be pooled to make the sector eligible for development. Landowners will form a consortium and will retain 60 per cent of the pooled land and surrender rest 40 per cent to service providing agencies or DDA for building infrastructure and public facilities. Landowners can also become a separate developer entity and develop 60 per cent land as sub-project.
Moreover, Delhi’s Real Estate Regulatory Authority is now functional which means developers who had taken the payment from the buyers who booked land in L-zone have to provide title agreement copy to the owners.
Location and connectivity are advantages of L-Zone
Located in south-west Delhi, L-Zone is the largest among Delhi’s 15 zones. It is expected to fulfil a significant part of the housing demand in the region. It is close to IGI Airport and strategically positioned between Dwarka sub-city and Gurgaon’s Dwarka Expressway. “Many builders have acquired land in the upcoming L-Zone and are selling apartments in projects that will be delivered in the future,” says Ashish Anand, director of Gurgaon-based Neo Developers.
The L-Zone will be developed as Smart City and will include solar power stations, rainwater harvesting and CCTV surveillance. Some reports suggest that over 2,000 units have been launched in the region in two years. The maximum supply is in the Rs 40 lakhs – Rs 80 lakhs segment, followed by units priced below Rs 40 lakhs (affordable housing). Average property prices hover around Rs 3,454 per sq ft.
Tips for investing in L-zone area
1) Ensure the project is registered with RERA and has a registration number.
2) Any individual investor can buy land but one must ensure to do a recce of the area prior to investment.
3) The buyer must read and understand the land pooling policy
4) A home buyer must know that the land pooling policy has just been notified and is not yet operational.