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S. Shanker

Move likely to trigger development in far-flung areas

Mumbai May 2 The Maharashtra Government's decision to repeal the Urban Land Ceiling Act may usher in more companies into the Mumbai realty sector.

The scrapping of the Act is expected to throw up large tracts of land, which otherwise were locked up by the law. Conservative estimates reveals that about 25,000 acres would be available for development in metropolis alongside Thane and Navi Mumbai.

Realtors, however, feel that the impact would be felt more outside the State capital like Pune where land prices have shot up by over 300 per cent in the last one year.

Sobering Effect

Mr Mohan Deshmukh, President, Maharashtra Chamber of Housing Industry, feels that it could facilitate development more in tier-II cities than in Mumbai where land is scarce.

He also sees it as an opportunity for large corporates to step into the construction sector and to some extent bring about a tapering of prices, primarily due to more housing stocks being rolled out.

While up market locales such as Malabar, Bandra, Khar and Santacruz up to Lokhandwala have little vacant land, it can trigger development in far-flung areas in the suburbs and Thane. "Most of the available land in the city is with encumbrance and litigation. It could have a sobering effect in tier-II cities such as Pune, where the price of an acre in the periphery has spiralled from about Rs 10 lakh to Rs 40 lakh over the last one year," he said.

Realty Prices

Mr Shamsu Lalani, Director, Lalani Group, a Mumbai-based construction company which has several projects lined up in Thane and Pune, said the Government move may not impact realty prices to a very great extent, but would definitely improve land availability and consequently housing. He also feels that it would open the doors for more corporate entrants and township projects could get a fillip.

The ULC Act came into force in 1976 during the Emergency with a primarily focus on preventing land hoarding and to facilitate implementation of social and welfare projects.

While the Union Government scrapped it in 1999, States were required to follow suit and repeal the law as land came under their purview.

More Stories on : Real Estate & Construction | Maharashtra

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