Curbing Speculation in Real estate

Vision : Curbing Speculation in Real estate

Mission : New land usage rules to be implemented

Guiding principles :

Currently there exists 60-70% speculation in RE and most plots are still not utilized but still new layouts are coming up.

For residential plots :

Plots within city corporation limits should be utilized with 3 years of purchase. Failing so,should attract atleast 5% of guidance value per year. If selling before 3 yrs, seller will have to pay 10% of guidance value during registration.

Industry plots ( SEZ ) :

If allocated land for specific project is not used as per the project plan within stipulated timeframe, land should be repossessed and allocated to other projects, also penalty to be imposed. Industries, shouldnot be allowed to use this as landbank investment.

New Land acquisition norms :

Compensation should be given to the real farmers, being displaced by a project. Real farmer should be determined based on longevity of ownership of the land.

A speculator buying a land just to sell at a higher price at a later stage should be given only the registered price of land and maybe bank interest for the holding period.

( 80% of land is owned by speculators around the airport and not the real farmers. Also most land purchased in and around bangalore / mysore is not cultivated for last 2-3 years, if this continous no doubt food prices will go up even higher )

Why we need this :

- To reduce Speculation from existing 70% to managable percent. It is known , more the speculation, more the volatiliy and more the cost of doing business for the real end user.

- Cost of infrastructure projects will come down , paving way for faster implementation.

- With increasing costs, any social program announced by the govt will not see the end.

With huge population , we cannot afford to have pure market driven economy. These days, even US is thinking of regulating speculators and for the a good reason.

- Cost of housing is reduced and is affordable to common man

- Especially with no controls on agri land, in long term cost of cultivating will increase and along with that food prices.