The Gujarat government is working on a new urban housing policy that will introduce relaxed redevelopment rules and grant freehold status to housing board colonies, among other key provisions. The policy, which is being revised after a decade, is expected to be more liberal and aims to promote affordable housing through the redevelopment of old housing board colonies, colonies built by local or state authorities, and old private societies.
Key highlights 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, which restricts sale or transfer. Once the government decides to make them freehold, property holders will be able to dispose of their properties easily, facilitating redevelopment. The policy will also grant more transferable or sale rights to members of the housing board or authority.
Floor space index and commercial development
The government aims to offer a floor space index (FSI) of over 3 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 not wanting to be named said that the government may offer more open land to developers for commercial development to fund housing projects.
Objective and expected impact
One of the main objectives of the policy is to create cost-effective homes for new buyers in prime areas where property prices are relatively high. Sources indicated that there are discussions about relaxing development rules for all government-authority managed or private housing societies. The policy is expected to boost affordable housing and streamline redevelopment processes across the state.
