Land Acquisition Bill: Condemned Real Estate Unfriendly

Land Acquisition Bill was recently passed by the Union Cabinet. Though it ensures more rights to the farmers, Land Acquisition Bill will in fact cause the price hike, opine Real estate experts.

With the approval of Land Acquisition Bill, the consent of the land owners has become mandatory for all real estate projects. This bill seldom helps the real estate builders but it certainly helps the farmers. The farmers are empowered in a better way.

There was a fall in the price appreciation in 2012. This situation will be worsened with the implementation of Land Acquisition Bill. It cut short many rights of the real estate builders. It has been termed rightly as land owners friendly. Just by being a “land -owner –friendly”, how does it help the real estate sector? No clear cut answer in any way!

Many real estate experts opined that the arrival of Land Acquisition Bill will shoot up property prices.  Property prices will be rocketing. As per the new bill land owners have more rights on their land. Their consent has become mandatory. Though consent is limited to 80 % and not 100 %, there is no difference at all.

Many real estate builders have said that they purchase property with full consent. Niranjan Hiranandani, MD of Hiranandani Constructions said that they purchase the properties with cent per cent consent of the land owners. Yet he opined that Land Acquisition Bill would reduce the land owners’ resistance.

Lalit Kumar Jain, the National President of CREDAI, strongly criticizing the Land Acquisition Bill said that the bill was entirely against the real estate industry. How this bill benefits real estate builders when land owners are given an upper hand, he asked furiously.

He cautioned that the worst thing to hit the real estate market of the country is property price hike. This will be severe in the housing segment, he cautioned.

Land Acquisition Bill will make real estate developers reluctant to go forward with bigger projects. This bill also will dishearten the newcomers. With all these how this bill will become a real estate friendly one. Standing ton the shoes of land owners this bill is definitely a good one. Some real estate builders like DLF said that they will go forward with their future plans only after realizing the real impact of this new bill.

The officials of Hiranandani and DLF reported that they normally acquire land with full consent. Jones Lang LaSalle India’s Chairman and Country Chief, Mr. Anuj Puri, said that the bill will inversely affect the housing demand. The home buyers will be disheartened by the unaffordable prices. It will create lower demand.

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