With the Union government
planning to redevelop existing properties prime
locations in the two metros
Mumbai and Delhi, the real estate firms here are set to experience another
boom.
In partnership with private
realty firms, the centre proposes to overcome shortage in office and residential
spaces in these metros.It plans to demolish the existing single or two-storey
buildings.In commercial and residential areas to build multistorey structures
and optimize the use of prime real estate in its possession. Real estate firms will gain from residential flats or commercial space in the redeveloped
properties. They may also gain, from annuities, rental payments being
considered by the government in lieu of undertaking construction, financing and
risks involved with these projects.
The move will address to a
great extent the problem of steep property prices in the urban centers.The
problems of unaffordable housing prices can be effectively addressed by public-private
partnership.With this, the government would be able to add one crore sq ft
office space and 61,000 houses or flats in Mumbai. Another 43,000 flats would be made available for the Mumbai police. Similarly, 25 lakh sq ft office space
and 34,000 houses would be developed in New Delhi to overcome shortage of
residential space for the government officials, ever expanding list of former
ministers, members of parliament and retired government personnel. Another
20,000 houses required for the Delhi Police would be constructed on the
existing real estate held by the government agencies. The postal department
also needs residential space.
The planning panel and
ministries of urban development, railways, defense and finance are being
consulted on this initiative. The ministries of defense and railways may not be
part of the move to redevelop government properties. Though the three services
army, air force and navy are in need of residential and office spaces, the ministry
will execute its own plans, Excess land in cantonments would be utilized for
this purpose.
Once the policy to
redevelop the government properties is finalized, a biding process will be put
in place to select the partners for the projects. A model concession agreement would set the normal and commercial terms under which the real estate majors
will participate in these projects. The government will extend the
re-development of its property in Chennai, Bangalore, Hyderabad, Kolkata, Ahmadabad
and Pune.
For more details,
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