Yeida to change group housing land payment plan
Officials said that move comes after Yeida’s realized that realtors have been hesitant to purchase land for realty projects under the current scheme
The Yamuna Expressway Industrial Development Authority (Yeida) is considering a significant change in its land payment scheme for realtors, officials aware of the matter said.
Under the proposed revision, developers may be allowed to pay housing land costs over a five-year period, in contrast to the previous scheme, which required payment within 90 days after land allotment.
Officials said that move comes after Yeida’s realized that realtors have been hesitant to purchase land for realty projects under the current scheme.
Under the existing scheme, developers are initially required to pay 30 per cent of the total land cost immediately upon allotment. Subsequently, within 90 days, Yeida requests the remaining 70 per cent of the land cost.
In contrast, the new scheme currently under development would require developers to make a 30 percent payment at the time of allotment, with the remaining 70 percent of the land cost spread over a five-year period.
The proposal for this change will be presented in the upcoming Yeida board meeting scheduled for September 13.
Arun Vir Singh, chief executive officer of Yeida, said, “We will present the proposal to the board for discussion. We will see what the board decides.”
Yeida has already allocated land for approximately 20 real estate projects since 2010, and it now intends to extend this to housing land in its new schemes designated for developers.
The land is currently allocated at a rate of approximately ₹32,000 per square metre. Following this board meeting, Yeida aims to introduce schemes for the allocation of group housing land, driven by increased demand due to the acceleration of the airport project work in Jewar.
“The change in the payment plan is necessary because entrepreneurs or young talented players with limited funds cannot acquire land in the ongoing scheme in the Yamuna area. Only large groups with substantial funds can participate in this scheme. The new scheme will promote entrepreneurship and provide opportunities to new players,” said Vivek Raman, a real estate expert and co-founder and managing director of the Regrob Group of Companies.