Gujarat Govt May Give Land At Half Price For Development Causes
Heard of property at a discount? The Gujarat government may be offering land to institutions that serve a cause at 50 per cent discount. Institutions and trusts that work for social, religious, health or educational development can make use of this offer.
Sounds interesting? Here’s more.
Why is the change made?
According to reports, this is an incentive for institutions to come and invest in the state. This was necessary given that land rates had gone up. Prior to this, the state government used to give land to such institutions and in return only took a token annual rent of Re 1. However, for long this had stopped and special cases were required to be approved by the Cabinet.
The provision was held back for a while because of certain irregularities. There had been issues such as change in use of land after the sale. This time, the state government is keen on providing land at concessional rates than on the annual rent scheme. Such land would be evaluated by the district committee and the government will decide the right market value to shortlisted beneficiaries.
The scheme has not been announced formally yet as it is still under consideration, confirmed Deputy Chief Minister, Nitin Patel. The scheme is not entirely new but was put on the back burner for long given the rush of private entities to make use of a viable and affordable scheme.
Impact on real estate
Infrastructurally sound and developing peripheries can give a boost to residential market’s growth. With schools, hospitals, religious centres are an attraction for homebuyers and speak of the convenience quotient. For example, Surat Urban Development Authority (SUDA) has been planning to develop 985 sq km of land that comprises of 135 villages, talukas and three nagarpalikas. Villages such as Choriyasi, Palsana and Kamrej are included within the development plan. Usually, land sold by the state government is in areas such as these and hence land at concessional rates in these areas would work well for residential and commercial real estate.