The growth rate of the country’s population is prodigions. The Indian population grows at a every ten years rate
of more than ten per cent, naturally needs to find a corresponding number of
new homes over and above the existing number of residences of the previous
ten-year period. In addition to the above core need, at least ten per cent of
the existing number of houses require the need for reconstruction or
replacement, to stand up to the changing tastes of youth who inherit the elder
generation's homes. These two factors are considered to be favourable to the
growth and sustenance of Realty Sector and constitute the mainstay of Real Estate Business demand structure.
The second factor makes very little
demand for additional space. It creates only demand for construction activity.
Old buildings are extended within existing land area or demolished and built vertically with more space added through the means of enhanced FSI.
Obviously the need of the increased
population for housing units creates demand for new land for construction. But
the availability of land for new construction has been shrinking over the past
few decades, which forces the Governments to enhance the Floor Space Index for
construction in many major urban areas. To add to this unavoidable phenomenon,
Governments both at State and Central levels have been voraciously gobbling up
all available lands under the pretext of Economic Development and Industrialization.
In the fond desire of generating
sustainable employment State Industrial Development Corporations and others of
the kind have taken away vast tracts of land out of the market, for
preferential allotment to Industries. In spite of such supportive measures, an
unconscionably high number of industrial units are today lying sick, with the
land and other resources invested in them becoming unproductive. In addition, a
high percentage of the developed industrial plots are lying unsold with the
corporations. If the prescribed price of the plots for allotment of these
plots, one will be wondering why these plots are remaining unsold.
Even with a conservative estimation, it
could be said that thousands of hectares of developed industrial plots in most States are lying unsold, despite the fact of ridiculously low prices at which
these are proposed to be sold.
There is something that does not meet
the naked eye behind this queer phenomenon. There is a strong case for
moratorium on further acquisition of land for industrialization until all the
idle plots are allotted to deserving units.
Then we are witnessing there are the
lands acquired for Special Economic Zones and Port Development. The special
economic zones have run into a total failure. Everywhere there are erupting
agitations against new land acquisitions. Cumulatively, all these factors join
together effecting in the reduction of land available for the growth of new
construction on the housing sector. Some serious steps need to be taken to
address concerns of the citizens about land for their essential housing needs,
which remain one of the three basic requirements for any human being.
The practical measures as mentioned
above could well create a favourable situation of easing out the problem of land availability for new construction. The Policy makers while examining and
formulating policy options, should keep in their minds the interests of the
small dealers and facilitators. Adequate reserve land should be kept for the
expanding growth of housing units which has to match the increasing population.
This will forestall the future problems.
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