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Land development and its side effects

, May 30, 2018, 0 Comments

land-development-india-marketexpress-inLand development is a process of transforming less profitable land to the one which will give maximum returns. This process helps in reducing the concentration of the population in one particular area. This process is helpful, however the way this takes place is the concerned issue.

In India, lands are mostly acquired by businessmen or builders. Being businessmen, they focus on their own development strategy. The selling starts even before anything happens on the ground or before the completion, this is one of the drawbacks, as due clearance required for occupancy might be delayed due to various reasons which the developer is well aware of, but still keeps selling the units.  But thanks to RERA, selling half-baked cookie won’t happen for the new real estate projects.

Along with several drawbacks, the strategy to keep holding the constructed units is a failing strategy.  In India, there will be lakhs of houses which are not being occupied even though more than one third population of India is homeless. When there so many houses constructed, a few things to ponder on; why people are not interested in moving to these places, why they are filling the pockets of other people if they can have their own place.

We can say there are two scenarios:

Customers buy these newly constructed buildings

These customers who buy houses are either the ones who are from the upper class or upper middle class. They are independent and purchase houses, mostly for investment or some even move to them. They are financially independent, the crucial factor.

The ones who try to understand the future of that location/area


Customers feel that they can time the real estate market and understand the future happenings very well. These are the customers from lower middle class and form the largest segment of the India’s working class economy.

Another reason one can hear is that people always keep saying there are no homes.

Government keep coming up with new programs promising that particular program will reduce the cost of buying homes, there will be a reduction in homeless population, however many of these end up good on paper and most of them do not reach to end customers at all.

The bank provides loans by coming up with new offers, another chunk of people take up the loans and do not occupy the house, purchased by them. They keep waiting for others to fill that location even though they won’t be staying, but move to a new place. There are some who are forced to shift to new place even when they don’t have to, since they have no other option.

Why people don’t want to move to this new place?

Child population: No or less proper schools/colleges
Young population: No or fewer employment opportunities, less scope for business
Elderly population: Less scope to socialize
Common problems: There will no playground, sports club, entertainment places, transport, hospitals, police station for assurance of safety

Moving to a new place also creates some side effects. It gives rise to demand of automobiles, which in turn increases pollution, the market is affected by it – as it leads to demand in automobiles, petrol, and diesel. It increases monopoly – there is exploitation of consumers, as there are less options for transport, groceries, daily products, etc.

In a developing area, lesser the population, higher is the risk of safety. Along with that, environmental Issues are also a byproduct in the process of the shifting the people to new places; Trees are being cut, however they are not being replaced. Too much of construction at a time gives rise to pollution, leads to various health issues for resident of the developing place.

Recommendations: Government should pass a law which would state clearly, If there is an area coming under the scope of development then first roads and railways should be extended, post this there should be government / private hospitals, schools, shops for daily needs, and then permission for constructing a residential building should be given. It may sound to be a utopian policy, but worth implementing in a cluster manner so that we can all live in harmony with nature and in good health.