With the new government having announced the Housing for All Scheme, all eyes are trained on acquiring land to meet the demand for property. NCR, being a fast-growing region economically, has a high influx of people, making it essential that economic housing is provided.
Land acquisition is key if the government wishes to see its Housing for All scheme through. Lack of sufficient supply was the biggest drawback of all previous housing schemes that the government needs to rectify this time around. Massive plans are on to have 2 crore houses ready by 2022. While this is a challenging task, mobilization of resources has already begun.
Target Areas to Acquire Land for Housing
Unlocking land is important if this scheme is to work. Land in both, rural and urban areas is necessary for this housing project. As urban areas will cost more for land acquisition, the government needs to provide sufficient funds for the same. Each state and local body needs to allow and pass sanctions and approvals, so land is available for construction.
Introducing credit-linked subsidy has been discussed, while providing subsidy for individual construction via a beneficiary was also considered. Venkaiah Naidu, the Minister of Housing and Urban Poverty Alleviation has stated that a whooping INR 3 lakh crore would be required to meet the shortage of land for affordable housing.
NCR Emerging as Economically Viable
NCR is on a growth spurt and real estate prices are also rising. This makes the need for affordable housing even more imperative. Gurgaon and Jhajjar are forerunners as economical hubs. According to CommonFloor.com, a property in Sector 56 of Gurgaon experiences an estimated sale price appreciation of 6.7 percent.Jhajjar is also being touted as the next big logistics hub. With this rate of development, increase in job opportunities and migration of people, housing will have to be catered to.
The government is also taking up the challenge of identifying uncontrolled zones and using it for infrastructure development. Clearances will also have to be streamlined for new housing construction projects to begin. Land acquisition will not only help create housing in urban areas but will also target rural areas and serve to raise their economic standard.
What Separates this New Initiative from the Rest?
Compared to such initiatives in the past, the government plans to allow each state to pass their own land acquisition bills, making it easier for them to identify key strengths and weaknesses, and create a bill accordingly. This plan will quicken the process of constructing affordable homes for lower income groups and the urban poor.
The major factors that they will be looking into include redevelopment of slums and partnering with public and private sector organizations. When it comes to redeveloping or relocating slums, acquiring land is essential. Plans are also being implemented to have lenient norms for FDI that will bring foreign capital into the country. The government also seeks to assist local bodies to release municipal bonds that will provide financial assistance to low-income groups.
Another important change is that the amount that an individual can get as a home loan has been raised. This will give people more spending power, again, leading to requirement of land for residential projects.
Property development cannot be furthered if the growing demand for land is not met. With each state now drafting its own acquisition bills, the future looks bright for this housing scheme. With areas like Gurgaon, Bawal, and Dharuhera fast gaining traction, land acquisition is bound to speed up in NCR to meet the increasing demand. With several detractors already questioning if this scheme is viable or not, quicker measures need to be taken in order to achieve this goal.