Year 2008 has some excellent news in store for private developers and middle-income home buyers. For, minister of state for urban development Ajay Maken has freshly started the procedure of providing ground to private developers in Delhi with 40% floor space index (FSI) for developing low-cost housing.
“With this move, private developers can use surplus land for developing low-cost housing for every middle-class individual who previously wanted to buy a home but could not do so due to the lesser affordability factor. We would look at progressively applying similar such initiatives in different other metros as,” Maken told FE.
In today’s real estate scenario, it becomes significant to apply a “model Bill” rather a “model Act” which can encourage clearness from a level of a private developer to a level of an end-consumer. We are working towards this and would soon set up a regulatory body. This however, will not have any impact on the dealing prices or land prices,” he added.
There is the much-touted insufficiency of availability of surplus land for development of residential projects but the number of malls are coming up (or rather land without difficulty cleared for mall development) is a lot faster.
To this, Maken said, “This entirely depends on the developers: whether they should develop a residential property or a mall. In fact, given the situation, private developers should themselves come forward to develop low-cost housing projects in Delhi followed with other metroes as well.”
“This fashion should continue so that while on one hand the investments will keep driving, private developers will see themselves getting engaged in low-cost housing for the middle-class as well with 40% FSI which we would be executing across cities in the near future.”
