land prices in Noida and Gurgaon may fall in coming years as Delhi market is likely to get 70000 acres of land after the announcement of DDA new land pooling policy, according to property consultant CBRE.
“The land pooling policy will prove to be positive for the National Capital Region (NCR) in the long-term, since land prices in the suburban markets of Gurgaon and Noida would eventually rationalise with fresh supply coming into the Delhi market,” said CBRE South Asia Chairman and Managing Director Anshuman Magazine. The consultant highlighted that DDA has identified about 200 villages along the outskirts of Delhi for this scheme. It intends to convert around 90 villages into ‘development areas’ and about another 90 into ‘urban villages’.
“All such identified village areas are together likely to free up more than 70,000 acres of developable land in the NCR,” said CBRE. Magazine also noted that certain peripheral locations of Delhi with large land parcels have been witnessing price rises to the tune of two to three times over the course of about six quarters. These locations are land parcel along the NH-1, North Delhi (Akbarpur, Mazra), North-West Delhi (Rohini, Narela), West Delhi (Najafgarh, Dwarka) and areas of South Delhi (Masoodpur, Kishangarh, Chhatarpur etc.)
Similarly Experts said that “Once there is more supply in Delhi, market prices will fall in neighbouring regions because Delhi address has premium attached to it.” According to the Delhi Development Authority’s (DDA’s) recently passed land pooling policy, private developers may directly acquire land from farmers/landowners willing to participate in the land pooling scheme (lPS), where they will get back 40-60 per cent of the developed land, instead of any compensation
However, Supertech CMD RK Arora has another point of view “Demand of property in NCR markets like Noida, Greater Noida and Gurgaon is mainly on account of the employment potentials and affordability in these cities and not due to scarcity in Delhi.” “land cost in Delhi is very high and will remain high as compared to Noida and other NCR markets. The demand in Noida, Greater Noida and Gurgaon would to remain intact in the days to come and it has no relation with the demand-supply position in Delhi,” he added .
Similarly Gaursons MD Manoj Gaur told The Pioneer “The land pooling policy in Delhi concerns those areas where there is lack of infrastructure like schools, hospitals and metro connectivity and these developments are already available in places like Noida, Greater Noida, Yamuna Expressway & Gurgaon. So even if land pooling creates more supply in the form of new townships, demand of Noida, Greater Noida & Gurgaon will not be affected.”