If you plan to buy property in the twin cities of Noida-Greater Noida, do not delay. It is the best time to invest as the new land acquisition policy announced by the UP government recently, promises an investor’s dream being realized. The property rates in the twin cities could again skyrocket, thanks to the hefty compensation package announced for farmers.
Under the new policy, undoubtedly, authorities will have to face an extra burden, as developing authorities will be forced to hike the existing rate. It is believed that the district administration is also planning to revise the circle rates (as a projected 25-30% hike in existing rates). Such a projected property hike will make both Gurgaon and Faridabad comparatively cheaper to live in. However, in terms of infrastructure like the roads, sewers, water and connectivity, Noida-Greater Noida will always be the best.
In the new acquisition policy, developers can acquire land directly from farmers and acquisitions can only happen with the mutual consent of 70% of the farmers in a given area. In case of disagreement, the project would be reviewed. In the affected villages where land has been acquired, the developer would have to construct a Kisan Bhavan as well as a model school.
Rakesh Yadav, managing director of Antriksh Group says: “The new policy has been framed to safeguard the interest of farmers. Terming the new policy a historic step, effort would be made to get it implemented at the national level as the Union government has also planned to bring a land acquisition bill very soon. The landacquisition policy of UP is even better than the ones being implemented in Congress-ruled states like Haryana as it covers both farmers and developers interest.”
Anil Sharma, CMD of Amrapali Group says: “The whole idea of a majority of villagers endorsing acquisition may act as a non-starter for acquisition due to differing political and social agendas. Even in cases where the government may actually need land to develop some public utility structure or industrial estate, this law may impede their progress. Instead, farmers should be given more generous compensation and should they choose to forgo their right to ask for higher compensation in court, they should be immediately given developed plots in developed sectors allowing them to profit from the development around them.”
Naveen Raheja, managing director of the Raheja Group, says: “The land acquisition policy that sprang up in UP after the agitation by farmers has shown some hope but the fact remains that for big developers, UP only means Ghaziabad, Noida and Greater Noida. Apart from this, UP has to improve its image linked to poor law and order situation. This stigma gives it a negative perception in comparison to other states. Not only the land policy, there are so many other problems that UP has to resolve.”
Rahul Gaur, the CMD of Brys Group, says: “Planned implementation and fast progress is synonymous with UP. It is believed in the real estate circuit that under the prevailing circumstances, implementation of all the mega plans for UP would see light of day in the next few years. It is clear that those areas where land has already been acquired and compensation distributed to farmers will be out of the ambit of new land acquisition policy.”
Harmit Chawla, the managing director of H Corp Realty Pvt Ltd, says: “The MNCs/TNCs have not shifted their base anywhere in UP as can be seen in the case of Gurgaon. ITeS/BPOs have also coldshouldered UP when compared to other upcoming cities. The circle rates are more generous in Gurgaon leading to a better realization for the farmer. A farmer can actually buy more tracts of land using that money if he chooses. Also, the opportunity to ask for a higher compensation from court remains with him even after accepting a compensation cheque. In UP, the circle rates should be brought more in line with the actual transaction values to get it reflected in compensation cheques.”
“It is good that this policy has sought time-linked completion of projects. This is the most important thing for real estate development anywhere. All plans under implementation ought to be time-linked or time-bound with penalty-linked deadlines. A few things that need urgent attention are law and order to meet security needs, removal of bureaucratic delays, dismantling of development authorities which regulate the industry and delay progress, public-private partnership, single-window clearances for the real estate and construction industry, power, water and sewerage to be developed to meet the future demands,” Manoj Gaur, of JP Group, says.
Prashant Tiwari, the managing director of Prateek Group, says: “UP has been definitely trying to compete in the last couple of years by bringing in development schemes through integrated townships and high-tech cities. But UP’s urban development policies should be more favourable to the developers. They should be more stable and well defined. Cities like Moradabad, Lucknow, Meerut, Kanpur, Varanasi, Allahabad, etc, have good potential for real estate development.”