Housing prices may increase by up to 50% in the National Capital Region (NCR) as land would become costlier once Parliament passes the proposed Land Acquisition Bill, an industry body study has said.
"Under the proposed Bill, the development authorities would be forced to hike the land rates substantially. As a result, the prices of janta flats, two, three and four bed room apartments in the NCR may increase by up to 50%," an Assocham study said.
The Bill was introduced in the Lok Sabha during monsoon session of Parliament and now it is under the consideration of the Standing Committee on Rural Development, which is expected to give its report in the winter session of Parliament.
Real estate developers have said the Bill passed by the Cabinet would make land costlier by up to 80% due to higher compensation offered to farmers, thus, adversely affecting the housing development in the country.
Under the proposed Act, developers would have to pay four times more than the market value to land owners in rural areas and two times in the urban areas.
This is only going to increase the cost of setting up the industrial establishments, infrastructural projects and townships, Assocham said.
"The policy would adversely affect the real estate development as additional burden of land cost will make housing expensive. Thus, there is a need to look into it rationally," Assocham Secretary General DS Rawat said.