Realising the demand-supply mismatch for middle and low-income housing, the government?s second fiscal stimulus package announced on Friday stated its intention to work with state governments to encourage them to release land for low and middle income housing schemes.
But good intentions aren?t always easy to actualize. Translating the proposal to ground reality could prove to a substantial challenge, feel property experts. ?Theoretically it is a great initiative, but there will be practical issues like the extent of land being released and ownership of the development work,? says Ganesh Raj, industry leader and partner, Ernst and Young.
?Working with State governments will require huge effort and the implementation will take significant amount of time. The state governments will not have the machinery to execute the proposal and private developers will have to be roped in,? said Kolkata-based Abhijit Das, regional director, Jones Lang La Salle India.
Apprehensions abound about state governments? willingness to reciprocate the Centre?s enthusiasm. ?The state should give cheaper land rates to the developers and monitor that the land is not misused. The contract for the same should be awarded to those developers only who has the credibility and capacity to deliver and who quotes the lowest price for the same technical specifications,? said Navin Raheja, managing director, Raheja Developers.