Saturday, December 01, 2007

Land prices set to crash ??

Is this the pin which deflates the bubble ???

A total of 22,000 hectares (approximately 54,363 acres) will be released in the city with the State Legislative Assembly on Thursday passing a resolution to repeal the Urban Land Ceiling and Regulation Act of 1976. Of the 22,000 hectares, 9,500 hectares (23,475 acres) will be used for construction activity.

However, many city builders are still nurturing hopes that the cooling of heated up land rates will take up to two years to become a reality. President of the Promoters and Builders Association of Pune (PBAP) Lalitkumar Jain, while welcoming the decision said, "Mere repeal of the Act will not bring down the prices. The government has to address the demand and supply issue and a master plan will have to readied for the same. Infrastructure should be made available to support the desire to provide affordable housing," he said.

Municipal commissioner Praveensinh Pardeshi too welcomed the decision, but said that land prices will definitely come down in the "near future." This will help low cost housing for the poor and will also put a full stop to burgeoning slums, he said.

Another builder, Rohite Gera, vicepresident of PBAP, said the repeal of the Act and the ensuing price slump that could happen over 15 months would affect the "fly-by-night operators and not the regular real estate developers." Also, the government decision to levy a tax on vacant land will have to assessed to see how much it would benefit the end user, he said.

With the Act being repealed by the state, it will also throw open the blocked funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), a pre-condition put by the Centre.

Schemes for poor under the Development Control rules and the JNNURM will get more land for development, Pardeshi said.

1 comment:

Rajeev said...

its a bubble ...its going to burst soon