THE REAL STATUS OF REAL ESTATE : "DDA to launch PPP Model for Development of Large Land Parcels and introduce new Regulations to Eliminate Limited Land Holding Rule "
The real estate market in Delhi is dynamic yet highly complex, fuelled by strong demand for both residential and commercial properties. However, challenges such as limited land availability, a rapidly growing population, high acquisition costs, and the complexities of navigating approvals, zoning regulations, and building codes make it difficult for developers and investors. These hurdles collectively create a challenging landscape for all stakeholders, including homebuyers.
CII has been actively collaborating with the Industry and the Government to address these issues and develop sustainable solutions to transform Delhi into a vibrant global city. Recently, CII organized a Real Estate Summit, Delhi, where industry leaders discussed their concerns directly with the Vice Chairman of DDA and the Chairman of RERA Delhi.
At the Summit, DDA Vice-Chairman Mr. Subhashish Panda shared key updates on Delhi’s redevelopment under the Master Plan 2041. He outlined a vision to position Delhi as a hub for the service industry, corporate headquarters, and commercial spaces. Mr. Panda announced that DDA is working on plan to develop land in a Public Private Partnership (PPP) with developers on annuity model etc., for which a detailed model plan will soon be released. He further added that DDA is also coming with new regulations to eliminate limited land holding rule in Delhi for collative development of land parcels. Along with this he called on for proposals from industry members for rehabilitation and redevelopment of slums while utilizing some fraction of land for profitable ventures. He further unveiled DDA is planning to come up with a proposal for redevelopment of societies based on Mumbai model in collaboration with developers and other stakeholders.
Mr. Panda concluded that huge Delhi has huge opportunity for development and shared that on the line of Aero City, DDA is already working on coming on new Industrial Zones for service sector. He further cited the example of Narela as the upcoming new educational cum Industrial hub-integrated freight corridor, logistic park etc.
RERA Delhi Chairman Anand Kumar highlighted the positive impact of the RERA Act 2016, enhancing transparency and trust in the real estate sector. He stressed the importance of property registration to curb illegal developments. He further highlighted that e-commerce in current times is the critical part of real estate sector and hence it will be coming up with a mandate for integration with RERA regulations. He added that it is unfortunate that authorities such as DMRC are using land for commercial purposes without any intimation to RERA. In this regard, he said that RERA will now soon be coming with regulations for all the relevant stakeholders to seek permission for using their premises for commercial establishments.
When discussing the holistic development of real estate, it’s important to note that not only building but also sustainably maintaining infrastructure is a major challenge. In this context, Infrastructure Facility Management (IFM) services play a vital role. While in developed markets, Facility Management (FM) services are seamlessly integrated with other real estate functions like rent collection and lease management, India’s FM sector has yet to fully evolve into comprehensive property management solutions. To address this, CII, in partnership with CBRE as a knowledge partner, organized an Infrastructure Management Conference aimed at strategically advancing the sector's growth in the country.
Thus, there is an urgent need of policy on facility management both for government organisations but also which is inclusive for developers and other stakeholders. The developers should be rested with responsibility of property management by laws with due checks to ensure holistic development and sustainable infrastructure in the country.
Mr. Jaideep Ahuja, Chairman of CII Delhi and Managing Director & CEO of Ahuja Residency Pvt Ltd, emphasized the evolving dynamics of Delhi’s real estate sector and its pivotal role in driving urban development and economic progress. While Mr. Harsh Vardhan Bansal, Convenor of the CII Delhi Panel on Infrastructure, Real Estate & Urban Development and Co-Founder of Unity Group, shared the key challenges faced by industry players, particularly the lack of regulatory clarity that has created obstacles for developers in Delhi. He stated that Delhi perhaps is the only capital in the world where the people from come to live in Delhi but work in neighbouring regions wherein, the world the case is opposite.
September 2024