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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