Maharashtra, which is striving to keep its pre-eminent position due to competition from other states, predicts a speedier liberalisation of the housing sector due to the repeal of vexed Urban Land Ceiling Regulation Act (ULCRA). The state government, which has come under attack from the centre for delays in scrapping the act, has asserted that projects will come out at a faster pace, and developers will pass the benefits of speedier approvals on to the consumers.
According to the state government’s internal note, which assesses the impact of repeal of ULCRA, claimed that “State will not confront with issues like slums as a large amount of land will be freed mainly for the creation of housing stocks. This will benefit the poor, low income, middle group and high income group. The government may consider a proposal whereby it would be mandatory for land developer to construct in equal proportion housing units of 40 sq mt, 60 sq mt and 80 sq mt on freed lands. The government will amend the development control rules.” In Mumbai alone,the state-run Mumbai Housing & Area Development Authority (MHADA) would construct 2 lakh houses for people in the low-income and middle-income, the government claims.
Anuj Puri, chairman & country head, Jones Lang Lasalle Meghraj opined that Now that the Urban Land Ceiling Act is repealed, considerable portions of land will be released in central areas of cities. However, these are out of the reach of middle-income buyers to begin with, so they will not benefit. The land locked under the ULCRA and now being reverted to its owners has appreciated in tandem with market dynamics since the passing of the Act 22 years ago.
Niranjan Hiranandani, managing director of Hiranandani Constructions said that a huge land bank availability would be created specially in the peripheral of all cities and towns.