LANDLANDfor for Affordable Affordable HousingHousing

Prof.Dr.P.S.N.RaoProfessor of HousingSchool of Planning and Architecture ( SPA ) New Delhi, INDIA

Costs Involved in Costs Involved in HousingHousing

Cost Apportionment in Cost Apportionment in HousingHousing

Making Housing Making Housing AffordableAffordableWhile there are many cost components, any

attempt at making housing affordable needs to tackle ALL of the components.

Land being the major cost component, reductions in land costs make a big dent in the ultimate pricing of housing.

In an attempt to make housing affordable, fringe locations with low land costs are taken up for development. Invariably these outlying projects are not well connected by public transportation and take a long time to take off.

System of Housing System of Housing SupplySupply Housing Projects by Government

Agencies - state housing boards, development authorities, statutory housing corporations, etc.

Housing Projects as part of National / State Government Programmes – BSUP, RAY, Indiramma, Manyawar Kanshiram Aawas Yojana, etc.

Town Planning Schemes Housing Projects by Cooperative

Societies Housing Projects by Real Estate

Developers Illegal Land Subdivisions Squatting on Various Types

of Lands

Method of Land Procurement in Method of Land Procurement in Various Housing Supply Various Housing Supply Systems Systems

Housing Supply System

System of Land Procurement

Costs

Housing Projects by Government Agencies

-Land Acquisition-PPP

-As per LAA 1894 and State Policy-Market Rate

Housing Projects as part of National / State Programmes

-Land Acquisition-PPP

-As per LAA 1894 and State Policy-Market Rate

Town Planning Schemes

-Private Lands are Readjusted

-Small portions are acquired as per LAA 1894 and State Policy

Housing Projects by Cooperative Societies

-Allotment by Govt. Agencies-Market Purchase

-As per LAA 1894 and State Policy-Market Rate

Housing Projects by Real Estate Developers

-Allotment by Govt. Agencies-Market Purchase

-As per LAA 1894 and State Policy-Market Rate

Illegal Land Subdivisions

-Market Purchase -Market Rate

Squatting -Land Grab -Nil

Key Methods of Sourcing Key Methods of Sourcing LandLandLand Acquisition under LAA 1894

Pooling and Readjustment

Market Purchase

PPP and Other Methods

LAA 1894LAA 1894Land can be acquired only for ‘public purpose’

Compensation to be paid as per ‘market value’

Provision for appeal and enhanced compensation

Conflict of InterestsConflict of InterestsGovernment ( political ) perspectiveDeveloper perspectiveFarmer / land owner perspectiveFinancier’s perspectiveEnvironmentalist perspectiveCity Planner’s perspectivePoor and Houseless

also have a perspective

The DilemmaThe DilemmaGovernment has been acquiring

large parcels of land and giving to private companies ( SEZs, private industries, etc.) on the one hand while government housing agencies are citing many reasons for not acquiring lands for housing and instead encouraging private real estate developers – this obviously hurts the farmers when they see developers make huge profits.

While the government / government agencies acquire raw land at low rates from the farmers, they auction the developed land at high rates to the real estate developers.

This boosts up land prices as a whole and adds substantially to the housing costs.

Land acquisition often ends in protracted ligitation leading to delays.

The process is highly susceptible to political manipulation and consequent fallouts.

Governments have been acting much like private profit making entities !!

How can one expect affordable housing for the masses ?

Land at the Centre of Land at the Centre of LitigationLitigationAccording to a media report :“………….as many as 40 districts in 17 states in India have now been caught in land acquisition glitches. An estimated 3.69 lakh acres is involved”

Farmer AgitationsFarmer AgitationsUpjaoo Bhoomi Sanrakshan

Andolan Karnataka Rajya Raithu SanghaBharatiya Kisan Sangh

RAYRAYUnder the Government of India sponsored

Rajiv Awas Yojana ( RAY ), the government desires to grant property ownership rights to slum dwellers – in the case of Jaipur, it has been observed that most of the slums are on lands which are untenable or which belong to the Forest Department – obviously, the policy is easier said than implemented.

No Financing for LandNo Financing for LandHousing Finance Institutions in

India are averse to funding land procurement.

HUDCO used to have a scheme for the same but in the recent past, few cases are processed under this.

Poor Utilisation of LandPoor Utilisation of LandMost cities have poor utilisation

of lands for residential developments, often characterised by :

a) low densitiesb) low FAR / FSIc) height restrictiond) restrictive zoning

We need to completely change the present paradigm so that high intensity land utilisation occurs.

Some InnovationsSome Innovations12 ½ percent scheme in Navi MumbaiReasonable compensation on slab

system, plots, annuity and stamp duty exemption in Haryana

Land assembly by pooling by VUDA in Visakhapatnam

Innovations in RajasthanReservations in housing

projects in various statesFarmer Driven Real Estate

Development in PuneLand Banking

The Land Imperative for The Land Imperative for Affordable HousingAffordable HousingNeed for appropriate land laws for

acquisition for housingLand Records, Titling and Guarantee

System Modernisation of Offices of Registrars

of Land / Property RegistrationAppropriate Valuation RegimeFull Land Mapping with Ownership

DetailsAppropriate Land Taxation High Intensity Land UtilisationLow Transaction Costs ( Stamp Duty )Financing Land Procurement

eMAIL : drpsnrao@hotmail.com

Thank you.