Mumbai: The Union Government's decision to pay four times more
of a farm land under the new Land Acquisition Bill will escalate land prices.
It will result in a steep hike in housing prices, say real estate experts.
The much debated Land Acquisition Bill was recently approved by
the Union Cabinet. The new Act makes the consent of 80% of owners mandatory for
private projects and 70% for the public-private-partnership projects.
It is yet to be passed in the Lok Sabha and has been deferred
till the Budget Session.
“Property prices are primarily determined by the cost of land.
If the land cost is high, the developers will try to recover it by increasing
project prices,” said the general secretary of Maharashtra Chamber of HousingIndustry, Navi Mumbai. He said that houses in Mumbai and on its outskirts are
so high that people cannot afford it.
Instead of reducing prices by abolishing various taxes such as
stamp duty, service tax and VAT, the government’s policy will adversely affect
prices. It has been observed that the Bill, if approved, will badly affect the
low-cost housing sector. This is because more low-cost houses can be built only
if the price of land is low.
The land prices in Navi Mumbai has hiked flat prices because of
soaring prices of land which is sold by a local body in an open auction.
Even if the government gives developers land for cheap, they do
not construct affordable houses.
No comments:
Post a Comment