Home Masterbuilder Rise in land cost unavoidable says real estate developers

Rise in land cost unavoidable says real estate developers

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Land prices will escalate leading to rise in housing price if the Land Acquisition Bill is passed by Parliament, Confederation of Real Estate Developers’ Associations of India (CREDAI) National President Lalit Kumar Jain said. If the bill gets passed in Parliament developers will also hesitate to go for big projects, he added. Many real estate developers and property consultants have shared similar views on the Land Acquisition Bill. The Land Acquisition Bill was cleared by the union cabinet making the consent of 80 per cent of owners mandatory for private projects. While farmers’ compensation issue is taken care of, the government has not looked at the overall growth of the country, National Real Estate Development Council (NAREDCO) President Navin M Raheja said.  In the case of public-private-partnership (PPP) projects, the bill makes mandatory obtaining of consent of 70 per cent of the land owners. Besides consent, the bill proposes higher compensation and rehabilitation package to land owners. Mumbai-based Hiranandani Constructions Managing Director Niranjan Hiranandani said with higher compensation to farmers whether we will get land for affordable housing is a big question mark. DLF Group Executive Director Rajeev Talwar said that the feedback will be known only after the bill comes into effect. Leading consultant Jones Lang LaSalle India Chairman and Country Head Anuj Puri said demand of housing projects will be affected in future with passage of the bill in Parliament.

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