New acquisition policy will hike property cost
Even as the Greater Noida authority is gearing up for fresh land acquisition in Shahberi, builders are sceptical about the viability of the plan in the long run.india Updated: Jul 08, 2011 22:19 IST
Even as the Greater Noida authority is gearing up for fresh land acquisition in Shahberi, builders are sceptical about the viability of the plan in the long run. They say farmers may benefit under the new land acquisition policy but buyers will have to shell out more for houses.
“The new policy says the authority will have to return 23% of the developed land to farmers plus cash compensation. The additional cost will certainly be added to the price of the remaining land. The authority will have no choice but to pass the burden on to developers. In such a situation we will have to up the house prices,” said a builder.
The other concern is that half of the land acquired will be lost in creating facilities such as roads, drains, parks and community areas. Only the remaining half can be sold to builders.
The authority is bound to increase rates as it will be also be paying a substantial amount by way of land development charges as well as cash compensation to farmers.