Proposed changes in area norms to address the issue of affordability and bring in much-needed liquidity into the real estate market.
There may now be more options for homebuyers looking for smaller houses in Haryana in the sub Rs 1 crore range. The Haryana government has proposed changes in the area norms for licenses granted under the Haryana Development and Regulation of Urban Areas Act 1975.
It has also proposed that the Deen Dayal Jan Awas Yojana be made applicable within Gurgaon- Manesar Urban Complex (GMUC).
The state government has proposed that minimum area norms for residential and industrial colonies be reduced. As per the revised norms, the minimum area proposed for developing a residential plotted colony is now 25 acres for hyper areas, 20 acres for high potential areas, 15 acres for medium and 10 acres for low potential zones.
It was earlier 100 acres for hyper and high, 15 acres for medium and 10 acres for low areas.
The state government has proposed the limit on the minimum area required to procure license for a residential group housing project be reduced from 10 acres to 5 acres and 4 acres for hyper and high. For medium areas it should now be two acres for medium and one acre for low potential zones.
For industrial plotted colonies, the area norms have been revised to 25 acres for hyper, 20 acres for high, 15 acres for medium and 10 acres for low. It was earlier 50 acres for hyper and high, 15 acres for medium and 10 acres for low areas.
The minimum area norms for low density eco-friendly colonies have also been revised to 25 acres from 100 acres.
It has also been decided to bring Gurugram under the ambit of Deen Dayal Jan Awas Yojana.
"With many of these area norms becoming impractical, resulting in very few license applications against these categories” it was necessary to introduce these changes, sources said adding that in the last five years only three licenses for development of independent plotted colonies have been granted one each in Faridabad, Panipat and Dharuhera. The last license for an independent plotted colony was issued in Gurugram in 2014.
They said that it was necessary to bring down the sizes of plots required for aggregation because "it is extremely difficult to aggregate 100 acres of contiguous land for development of plotted colonies".
With Gurugram being brought under the ambit of Deen Dayal Jan Awas Yojana, it would be possible to construct three floors on plot sizes ranging from 60 sq yards to 150 sq yards, Currently, floors cannot be constructed on a plot size below 180 sq yards, explains Anckur Srivasttava of GenReal Advisers, adding buyers would also be able to avail of benefits under the Pradhan Mantri Awas Yojana.
This would enable increased construction of houses in the range of Rs 50-60 lakh which would mean more options for buyers who would earlier be compelled to look at Noida and Greater Noida for stock in this price range. The move may also lead to revival of the mid-tier developer.
With the barrier of entry for group housing being reduced, liquidity situation may now become better, he says, adding unsold inventory in Gurugram will continue to be a challenge and recovery may not be fast.
According to Navin Raheja, CMD Raheja Developers, the move heralds revival of the realty market.
"Until now there was no budget housing in Gurugram except affordable housing but the number of units were limited. The issue of affordability is expected to be addressed through these changes. This is also a progressive step by the government to thwart illegal and unathorised housing. Liquidity in the market is bound to improve," he said.
These proposals are unlikely to lead to increased supply immediately. Approval of the Council of ministers and the Chief Minister is awaited.
Besides, it may take another three to five years before additional stock in these categories gets created in the market. Also, it is unlikely that builders who are already burdened with unsold stock will enter this segment. Just as in the case of affordable housing, a new stock of real estate developers may get into this segment of housing, said Mudassir Zaidi, Executive Director, North, Knight Frank India.Having said that, it is still sometime before the market revives. The move may help revive the real estate market but legacy issues of stuck projects, liquidity, homebuyers confidence need to be resolved first, he added.The Great Diwali Discount!
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