Delhi: Turning unaffordable, but hopes high
The National Capital Territory (NCT) is the second most populous metropolis in India after Mumbai. Delhi covers an area of 1,483 sq km and has a population of 16.8 million as per Census 2011, an increase from 13.9 million in Census 2001.
The city's growth rate has slowed considerably during this decade — 2.1 per cent per annum as compared to 4 per cent per annum between 1991-2001. Delhi has undergone major infrastructural changes during the last decade. There are new roads, bridges and a modern metro transport system, making the Capital one of the most attractive cities to live in.
Real estate in Delhi has seen a tremendous growth in prices in the past few years. As the private builder policy is yet to be announced, the active involvement of developers and development authorities is yet to happen. The current real estate development activities are largely concentrated towards the development of builder floors and farm houses. As per the Master Plan (MPD) 2021, regularisation of unauthorised colonies and farmhouses is on the anvil, which will boost the real estate activity in Delhi. Also there has been a lot of speculative buying of land since 2007 when MPD 2021 was announced. It is worth mentioning that 50 per cent of Delhi, i.e. 60,000 hectares of land, is still to be developed and this presents a huge opportunity for developers.
Looking at the current scenario, there are no affordable regions left in Delhi, due to which people are moving to peripheral areas of NCR such as Greater Noida West, Crossing Republic, Kundli, Sohna Road and Dwarka Expressway. In order to introduce new affordable housing stock in Delhi, development policy is critical.
Master Plan 2021 has an enabling provision of private participation for development. This includes areas in the green belt, existing unauthorised colonies and various farmhouse developments in South Delhi. If development policy is announced by the government, new supply can be expected at Rs 5,500 – 6,500 per sq ft in new development zones. Development policy is expected to comprise three new policies which are farmhouse / country homes policy, land pooling policy and increased floor area ratio (FAR) policy.