The Gujarat government is currently working on a new urban housing policy that will introduce relaxed redevelopment rules and grant freehold status to housing board colonies. This policy, being revised after a decade, aims to be more liberal and will lay the foundation for promoting affordable housing through redevelopment of old housing board colonies, colonies built by local or state authorities, and old private societies.
Key Features of the Policy
The policy is being developed by the urban development and urban housing department and is expected to be notified soon. A source close to the development stated, "We have prepared a new draft policy based on primary consultations with stakeholders and are expected to announce the draft policy shortly for public consultation." The source added that under the policy, the government may notify all colonies built by the housing board or any authority as freehold to expedite the redevelopment process.
Freehold Status and Transfer Rights
Currently, all housing board colonies are on a 99-year lease period, which makes their sale or transfer restrictive. Once the government decides to make them freehold, property holders will be able to dispose of their properties easily, including for redevelopment purposes. The policy will also grant more transferable or sale rights to members of the housing board or authority.
Floor Space Index (FSI) and Developer Incentives
The government aims to offer a floor space index (FSI) of 3 or more to make redevelopment projects more attractive. Developers will get more land and the option to earn from selling additional apartments after allotments to original dwellers. Officials who wished not to be named said that the government may offer more open land to developers for commercial development to fund the housing projects.
Objectives and Impact
One of the main objectives behind the policy is to create room for cost-effective homes for new buyers in prime areas where property prices are comparatively high. Sources also indicated that development rules may be relaxed for all government-authority managed or private housing societies. This policy is expected to significantly boost affordable housing and streamline redevelopment in Gujarat.
