National capital New Delhi has witnessed a rapid growth in urbanization. The pressure on land and infrastructure has led land regulating agency - Delhi Development Authority (DDA) to unlock land for urbanization in a controlled manner through the various master plans.
As per the Master Plan Delhi-2021 (MPD-2021), around 66,000 hectares (Ha) of land has been earmarked for the purpose of urbanization.
According to real estate market research firm Cushman and Wakefield, a White Paper has been prepared to provide an insight into the key provisions of MPD-2021 and the potential challenges that will need to be considered by the various stakeholders involved in the real estate domain.
MPD-2021 brings about a crucial change wherein the developer entity's role has been considered in the process of and acquisition and development in Delhi.
This long overdue change has been implemented by including the policy of Public-Private Partnership within the new land policy framework.
The last and the largest chunk of land being unlocked by the DDA is part of its planned strategy to ensure controlled and sustainable development, to meet the demands of estimated increase in urban population by 2021.
The DDA has liberalized its land acquisition policy to enable developer entity to directly acquire land from farmers or landowners.
The White Paper also discusses intricacies involved across various policy changes brought about by the new master plan in comparison to the older master plans.
Land unlocked through MPD 2021 is the largest share of land unlocked for urbanization till now, and thus, will present a very good opportunity for market constituents to participate in the supply of property within Delhi.
A substantial 4,357 million square feet of development across residential, commercial and public and semi-public segments is estimated through private participation. There is an opportunity to develop approximately 1.45 million new dwelling units in Delhi over the next decade, apart from commercial development.
The possibility to achieve this by 2021 has been analyzed considering historical occurrences and
development pattern witnessed in the realty market.
The White Paper presents a zone wise analysis of land unlocked for urbanization, the respite offered to various stakeholders and the riders for private participation.
According to the White Paper, 33 percent of this unlocked land is planned under residential land use; 26 percent is planned under green belts; and another three percent is planned under commercial land use.
The zones planned for development include Dwarka and Narela. The rest of the zones are yet to witness development. These zones can be expected to provide potential source of business for developers, funds and financial institutions, contractors, landlords (including farmers) and other market constituents.
At the same time, development in these zones would provide housing solution to individual buyers,
investors and occupiers.
As per Cushman and Wakefield's assessment of the MPD-2021 White Paper, Delhi will grow to almost twice its existing size from 82,300 hectares to 148,300 hectares.
The key provisions of the White Paper are as follows:
.Optimum utilization of available resources
.Both Public and Private land assembly, development and housing (role of developer entity)
.Policy to define the path for development of the newly unlocked land
.Public participation through Decentralized Local Area Planning (LAP)
.Plan implementation and monitoring through Performance Oriented Planning and Development
.Marked as a low density zone
.Development options in the zone include farmhouses and country homes
.Incentivised redevelopment with additional FAR
.Policy aimed at regularizing unauthorized colonies
The planning of Delhi came into force in 1962 with the notification of the first Master plan for Delhi. Since then, the Master Plan - Delhi (MPD) has been updated and revised in 1981 and 2001.
A key reason for the lack of fresh supply within Delhi, has been widely accepted to be the large-scale acquisition policy of the DDA as per the earlier version of Master Plan (1962) - which failed to keep pace with rapid urbanization of Delhi.
Accordingly the land pooling policy has been adopted to target the huge gap for residential units
Cushman and Wakefield is the world's largest privately-held commercial real estate services firm. The
company advises and represents clients on all aspects of property occupancy and investment, and has
established a preeminent position in the world's major markets.
Founded in 1917 it has 253 offices in 60 countries and more than 15,000 employees. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal.
The firm has over four billion dollars in assets under management.
Cushman and Wakefield established operations in India in 1997 and was the first international real estate service provider to be granted permission by the Government of India to operate as a wholly owned subsidiary. There are over 1,500 employees, operating across New Delhi, Gurgaon, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.
In addition, it services over 40 other cities such as Ahmedabad, Nagpur, Cochin, Mysore, Mohali, Chandigarh, Goa, Ludhiana, Jaipur and Coimbatore amongst others.
