The state’s new industrial policy, which has thrown in a huge supply of land in the market, is making realtors jittery. They fear that land prices will drop and, could even throw them out of business.
For you, as a buyer, it means houses will be available at cheap rates.
The industrial policy announced last week has opened up 35,000 acres of land worth Rs3.08 lakh crore in various cities. The land, earlier meant for special economic zones, will now be used for housing and commercial projects. Most of it is near cities like Navi Mumbai, Pune, Nashik and Nagpur.
The country’s biggest body of developers, Credai-MCHI, has opposed the states industrial policy. President of Credai, Lalit Kumar Jain, said that instead of allowing agriculture land to be converted into non-agricultural, the government should give higher floor space index in the city to construct more houses.
Floor space index refers to the ratio of constructed carpet area as against the size of a plot. An index of 2 on a plot of 100sq mt means one can construct 200sq mt.
“Floor space index below 5 is disastrous. A low index will only destroy the city’s greenery,” said Jain. “Only a few influential corporate groups will reap benefits of this policy.”
In Navi Mumbai, Mukesh Ambani and his aide, Anand Jain, own over 3,500 acres meant for special economic zones. A realty expert said that if they throw in 3,500 acres to construct houses at low rates, it will cause tremors in the market. “Also in Pune where Bharat Forge owns 11,500 acres...” said the expert.
Navi Mumbai resident, advocate Mahendra Sandhansiv, welcomed the new policy. “Presently, the property market is beyond the common man’s reach. And groups of small developers jack up rates without justification,” said Sandhansiv.
An office bearer of the Nationalist Congress Party, which has criticised the policy, said that the government should give 15% of developed land to farmers whose land was acquired for economic zones.