The dispute between the Delhi Government and the DDA on certain rule amendments saw the policy go nowhere, while unscrupulous elements announced projects and collected monies from naïve buyers with the promise of a house in Delhi.
Research and Real Estate Intelligence Service, JLL India, "the policy still remains a novel idea aimed to solve the issues faced in acquiring land due to fragmented land holdings and higher compensation payable in the wake of increased land valuations".
Removing the final bottleneck in implementation of the land pooling policy, Delhi urban development minister Satyendar Jain said on Thursday that the Delhi government will, within days, notify the 89 villages - declared as urbanised on Tuesday - as "development areas".
Under the DDA Land Pooling Policy (LPP), residents of urban villages can pool their land and hand it over to the DDA for construction of basic infrastructure like roads.
"This policy is likely to result in residential development projects across the prime city, which has an acute shortage of housing and where most of the housing needs are fulfilled by the DDA".
The DDA has created two categories for land pooling - above 20 hectares and second for land between 2 and 20 hectares.
With the land-pooling policy for the 89 villages approved, the Delhi government will no longer need to buy land from the DDA for developing facilities such as electrical sub-stations, stadiums, industrial areas, old-age homes, hostels, schools, etc.
It will help the DDA's Master Plan Delhi (MPD) 2021, which proposes construction of 25 lakh housing units by 2021 requiring a large amount of land. He said, "It would fill up Delhi's infrastructural deficit that has led to cropping up of unauthorised colonies". The DDA will then return a percentage of land to the owner. "The notification comes due to direct cognisance taken by the Delhi L-G".
"The returned land would be used by the owners only for building multi-storeyed flats which would provide affordable housing to the people of Delhi".
With the help of better infrastructure and readily available public amenities, the land pooled by the owners sees a substantial increase in its price after a few years of development.
Officials explained that under the policy, DDA will return 60 per cent of land for the receipt of 50 acres of land, while for 5 acres of land DDA will return 48 per cent of the land.
According to Sharma, this policy has the potential to change the dynamics of the residential market in NCR by boosting the supply of affordably priced apartment units within the geography of Delhi.