The need for greater coordination between the different development agencies

by Reuben Fri Jun 17, 2011 5:52 am

Today in any city in Kerala, the cost of land constitutes 50 percent of the total building cost. Consequently, access to land is a pre-condition to increasing the housing stock within the state; this can be achieved only by direct intervention of the government at the state level and the central level. Better coordination between the state agencies involved in housing development and the central institutions is the need of the hour.

In a long drawn out process, the state governments must identify suitable land and after acquiring and developing the land the same should be made available to the prospective house builders. If the supply and demand in land gets balanced, then the land price would definitely come down. Moreover, there should be a uniform land policy throughout the country.

As already mentioned earlier, the Central Government must take immediate steps to amend the Urban Land Ceiling and Regulation Act and its implementation should be backed up by efficient machinery so that the excess land acquired under this Act is released for housing. If the governments both at the center and the state take the initiative to provide Properties in Kerala at affordable prices then individual houses as well as group houses can be rapidly developed on the initiative of the private sector. This illustrates amply the responsibilities that lie with the public and the private sectors in housing development.

In cities like Kochi, the land values have already touched record highs. The highest value for properties in Kerala can be seen in Kochi and that too in the busy Marine Drive and the M.G.Road. Corporate Kerala has been rattled by the news of land transactions in this two localities having touched more than one crore rupees for a cent. Even an apartment in Marine Drive is now being offered at a price tag of more than one crore rupees per unit.

by harharmahadev Sun Jun 19, 2011 10:39 am

The biggest reason for high cost of land is excessive government intervention. You don't want to exacerbate the problem by asking for more government intervention. In fact, if you want property prices to drop, you should be demanding that the government get out of the way and let market forces determine land prices through the act of balancing supply and demand.

The Central Government must not amend ULCRA but get rid of it completely. There is absolutely no need for such draconian regulations in a free, democratic society. The Rent Control Act is another idiotic regulation. The govt should also get rid of all the regulations that prevent industrialization of agriculture and also prevent urban dwellers from owning farmland. All these stupid, thoughtless regulations are the root cause of the rot in India.

Basically, the govt should overhaul it's "Property Rights" outlook. Give more power to the owners and not the government.

by ashdoc Tue Jul 19, 2011 2:35 pm

where is harhar nowadays ??

by harharmahadev Thu Jul 21, 2011 9:57 pm

ashdoc wrote:where is harhar nowadays ??

Right here..u are the one who is missing.

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The need for greater coordination between the different development agencies

The need for greater coordination between the different development agencies

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