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Slums and Urban Land Prices 6

Urbanization is, however, a development oriented sign of

economic prosperity in any country. The increased level of

urbanization is important for socio-economic development of the

people and is to be encouraged but we require more development

planning to do that. Due to the concentration of number of

industrial units and other service sector activities near the existing

cities, unplanned urbanization and unabated migration and

concentration of poor population from the depressed rural areas

to the urban settlements, numerous problems of complex nature

have emerged. It has created an imbalance situation in the urban

centers especially social and economic conditions. The migration

has strained infrastructure facilities in the cities to the breaking

point. The intermixing various land uses has created confusion

and chaotic conditions. There has been acute shortage of

housing in urban areas with the result that the cities face grim

situation with the fast increasing number of shanty dwellers,

squatters, pavement dwellers and slums in all the metropolitan

and other cities throughout the nation1.

Origin of Slums

Majority of the developed countries, developing countries

and less developed countries are facing this problem of slums

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and there is no panacea to eradicate the same from the surface of

the earth. Slums are universal in character and no country is able

to get rid of them. Unplanned urbanization with its attendant evils

of negating the fundamental purpose of human society- a secure,

rewarding and happy life- is no doubt a matter of great concern.

Infrastructure facilities like housing, safe drinking water supply,

transport, health care, educational institutions for children, parks,

etc,. have become woefully inadequate and will soon reach a

critical stage threatening the civilized existence itself. As per the

census of India 2001, more than one fourth of urban population

living in slums and squatters, settlements, the future can only be

one of still larger population living in such conditions if public

neglect continues. It is said every second there are two additional

mouths to feed. The overcrowding population, poverty, ignorance,

diseases, mal nutrition, etc, must be eliminated and the society

should seek improvement of living standards and quality of life of

the people.

In the present day world especially in developing countries,

the growth of slums is usually parallel to the growth of

urbanization. In India is no exception to urbanization. In India, one

important reason for the migration of the rural population to the

metropolitan cities, apart from the fact that urban areas offer

better job opportunities appears to be that the development of

rural areas has lagged far behind, with the result that the rural

Page | 176

population is attracted to the amenities and entertainment

facilities which are available in the cities.

Housing has, without exception, failed to keep pace with

staggering rate of migration in to the cities and inevitable result

has been unplanned growth of the cities and the consequent

growth of slums. A recent assessment of slums growth as

obtained by the Census of India indicates that more than 25 per

cent of the population of the urban areas is living in slums.

India, a land of colorful contrasts, had a population of about

120 millions at the time of Ashoka (22BC) and the population

remained almost static till the time of Akabar i.e. upto 17th century

AD (during 1901 Census India’s population was 236 million)2. In a

span of one century the population of India increased to 1210

millions in 2011. Planned urbanization is a necessary component

of the infrastructure of economic development as towns provide,

inter alia, a variety of centralized services for the surrounding

area.

Factors Responsible for Creation of Slums

Various factors influence the creation of slums in most of

the developing countries of the world. Some of the major

contributory factors responsible for the growth of slums especially

in Delhi during the early periods can be summarized as follows;

Page | 177

1. In the early phase of industrialization, there is large-

scale migration to the cities due to employment

opportunities and other community facilities and

advantages offered by the city, which are absent in

majority of the rural areas of developed countries of

the world.

2. The poverty which means an income level which is

inadequate to maintain a decent standards of living

as judged by the standards of the society and low

paying capacity of the migrants, force them to find

refuge either in low rental areas or to squat on the

unused land located near their work places.

3. There is a housing shortage in urban areas due to

low level of income among the economically weaker

sections of the society, underprivileged sections of

the society, etc,.

4. Proximity of their houses, close to the source of

employment for economic reasons especially due to

the low level of transportation cost.

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5. Due to the high and fast growth of migration

especially from all rural areas of Indian territory to

the urban centers mainly searching for livelihood,

there is great strain on the existing transport system

and there is absence of cheap and rapid transport,

existing roads are not good for smooth

transportation as per the latest scientific

development of the mechanized vehicles to the work

place.

6. There is often absence of comprehensive

development planning and if it is there, it may not

have taken in to consideration the existing socio

economic conditions and requirements of the ever

growing population belonging to the economically,

politically weaker sections of the society.

7. There is always inadequate and insufficient

municipal civic amenities which increase to the

problems of the slum squatters and cause many

other problems. In addition to the above mentioned

the available municipal civic facilities are not

properly maintained and not functioning at the

appropriate time.

Page | 179

8. The high rents accompanied by the evil high rates of

commission (premium required to be paid to secure

possession) in Delhi, have encouraged occupiers or

owners even of average dwelling unit to part with

portion of their buildings. These sub divisions of

small dwelling units have further added to

overcrowding and congestion.

Home is the place where people in general carry out the

basic domestic and personal functions of family life. Physical and

mental health, working efficiently, emotional security and social

status are likely to be influenced by housing conditions. The

dwelling is the oldest branch of building, from man’s first crude

solutions of his most pressing problems, protection from the

elements, wild beasts and human enemies. Acquisition of suitable

home is though, vital to the modern family, but an average family

cannot do so merely on its own initiative. Thus, housing is of

direct significance to the community and the nation.

No country in the world, developed or developing or under

developed is able to provide cheap and adequate accommodation

to the man, which is very essential to eliminate the menace of

slums. However, it will be too simplistic to say that slums owe

their origin to the shortage of houses alone. They emerge,

continue and grow because of serious imbalances in the social

Page | 180

and economic set up. To control slums, we have to check these

imbalances otherwise nothing substantial is likely to be achieved.

Like poverty, it may be that slums will always be with us,

however energetic the local authorities may become in eliminating

these. But it must not be forgotten that even the slum landlord of

fiction has rights and owner of the slum or today is often a small

man or woman depending on few rents for a livelihood just above

social security level.

Thus, slums are not a new phenomenon with the

developed or developing or under developed countries. They

have existed, are existing and will remain with us perhaps for

quite a long time. The slums are the result of forces, events and

deficiencies in our socio economic structure. Industrialization and

urbanization especially in the development of secondary and

tertiary sectors during the last three decades in India are equally

responsible for the creation of slums.

Definition of Slums

The term slum is used in a loose sense to designate areas

which are overcrowded dilapidated, faultily laid out and generally

lacking in essential civic services. Slums have been defined as

poverty areas, run-down, overcrowded, inhabited by persons who

are not acceptable in other areas, characterized by unsanitary

Page | 181

surroundings, high death rate and high delinquency and crime

rate. As it is generally known, there is no exact definition of the

term slums available and even various writers on the subject differ

on its fundamentals. From the available sources, it can be seen

that a slum has got the characteristics like sub standard housing,

thickly populated squalid part of the city, and overcrowded

neighbourhood inhabited by the poorest people. The Webster

International Dictionary narrates slum as a thickly populated street

or alley, especially one marked by squalor, wretched living

conditions, or degradation of its inhabitants.

Slum problem is not only a problem of shelter; it is a

problem of health and hygiene. A number of widespread epidemic

diseases emanate from the slums. These slums are not only a

nuisance and danger to the slum dwellers but to the rest of the

population. A slum is usually understood to be an area of

overcrowded squalid, closely built and unhygienic housing. Urban

slums rose in great numbers during the growth of industrial cities

and towns in the 19th century.

Thus, slums it appears that they stand for the wretched

socio economic conditions of the city life of the people who are

living in the filthy blight areas. The combination of words of

SLUM appears to have unconsciously acquired the modified form

of existing conditions in the abbreviated form if we take S for

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Shell, L for Languishing, U for Urban and M for Masses. Thus

the word slum denotes Shell of Languishing Urban Masses.

This clearly narrates the natural condition prevalent in any slum

area of the nation irrespective of developed or developing or

under developed.

Characteristics of Slums

On the basis of observation from slums, we can outline its

major characteristics, which are given below:

1. Appearance:

This may be called a universal mark of the slum; its aspect

of neglect and disorder with respect to building, yards and streets.

The appearance is generally one of dilapidated and old structures

and a declining trend in respect of amenities.

2. Economic Status:

Generally, the people of the lowest income group inhabit a

slum; although there may be occasional buildings of equally run

down appearance inhabited by families that are not so poor.

However, in general, poor people inhabit the slum.

3. Over-crowding:

We may find that the cluster is overcrowded. Most of the

buildings / tenements are crowded with the people. If the slum is

retreating many buildings are unsafe for habitation, but there can

be overcrowding in the building occupied. Uninhabited spaces

are occupied by undesirable occupants and use it as junkyards.

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4. Population:

In a slum of a heterogeneous occupancy many of the

inhabitants are not welcome in other residential areas, or they

cannot afford to live elsewhere. Thus, it may be a refuge area of

the homeless, socially mal adjusted.

5. Health and Sanitation:

For understandable reasons when compared with

other area of residence, the slum is characterized by low

standards of sanitation. The slum is often most neglected by the

public services for sanitation. For variety of reasons it may also

be an area of high sickness and death rates.

6. Morals:

The slums may be an area of delinquency, crime but this is

more likely to be true of the socially disorganized slum. While

such a slum may not be the habitat of successful criminals, it may

be the habitat of marginal types or the hiding place of fugitive

criminals.

7. Way of Life:

Slums differ widely with respect to the social organization

of their inhabitants. They range from the slums in which the

inhabitants are strangers to one another and wish to be, to the

family slum in which there is wide acquaintance between

inhabitants.

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8. Social Isolation:

Every residential area within the modern city tends to be

socially isolated from others, partly by choice and partly by

location, the slum is especially so. It is the area of lowest

status inhabited by slum dwellers.

Thus, the overcrowding in the cities, extensive slums,

broken homes, the frustration and despair of poverty, unfavorable

conditions in home and neighborhood, large number of

immigrants, high rate of unemployment, low socio economic

status and physical deterioration are the general characteristics of

the cities and all these have combined to create the situation in

the cities, in which a new inducement for crime and delinquency

have risen11. The common factors contributing to the creation of

slums are manifold like, low wages and poverty preventing people

from paying for decent dwellings; invasion of incompatible

business and commerce in to residential areas leading to neglect

of dwellings, unplanned growth of cities, lack of maintenance and

enforcement of building codes of failure to prosecute for housing

code violations; leniency towards the owners of dilapidated

property in tax assessment, and low standards in remodelling old

dwellings social or other restrictions limiting the location or quality

of housing available to certain group; non adoption and non

enforcement of regulations with respect to satisfaction and safety

by municipal governments and finally human apathy towards

Page | 185

menace of slums. Therefore, a slum is characterized by a place

where basic necessities of life i.e. proper shelter, employment,

health, sanitation, education facilities etc are absent. In north

India especially in Delhi slums are often called jhugis, which

usually consists of mud wall and thatched roof. In India majority

of the slum people exist in metro-cities.

Lack of sanitation and inadequate civic basic facilities in

the overcrowded slum areas in majority of our metropolitan cities

help the growth of flies, mosquitoes, bugs, pigs, mice, etc, which

cause scores of diseases such as cholera, typhoid, malaria,

tuberculosis, etc, to which infants and children are easy prey. In

the congested and overcrowded areas people are keeping

rubbing shoulders with each other causing mental tension, which

manifests in social tensions leading to riots and various other

communal problems3. We have been facing the problem of these

due to the existence of large level of slum people in our

metropolitan areas and are obeying and following the rules of high

rich and politically linked people in their surrounding areas4. The

urban population and slum population of India and Delhi during

the 2001 is presented in Table 6.1.

Page | 186

Table 6.1: Identified / Estimated & Slum Population in India and Delhi during 2001.

No Details Delhi India % of Delhi to

Total

1. Urban Population 12905780 286119689 4.51

2. Slum Population 2318635 75264040 3.08

3. Percentage of Slum to

Total Urban Population

17.97 26.31 --

Source: - Compendium of Environment Statistics, 2007.

It may be inferred from Table 6.1 that more than 3 per cent of

the urban population of India was staying in Delhi during 2001.

Nearly 18 per cent of the urban population in Delhi during 2001

was under the category of slum population. In India the same

percentage during the same period was at 26.31 per cent. In

India 4.51 per cent of the urban population was under the

category of slum population during the year 2001. Its percentage

in Delhi was less than that of the national level at 1.43 per cent

during the same period5. The estimated slum population in India

and Delhi during 2011 to 2017 ie during the last year 11th Five

year Plan and 12th Five Year Plan is presented in Table 6.2.

Table 6.2: Estimated Slum Population in India and Delhi from 2011 to 2017.

(Number)

No Years Delhi India % of Delhi to Total

1. 2011 3163430 93055983 3.40

2. 2012 3260984 94977993 3.43

3. 2013 3360874 96907923 3.47

4. 2014 3463999 98845216 3.50

5. 2015 3570716 100786594 3.54

6. 2016 3681745 102729415 3.58

7. 2017 3793313 104668340 3.62 Source: Report on the Committee on Slum Statistics, Planning Commission,

Government of India.

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It may be observed from Table 6.2 that the slum population

in India during 2017 estimated at 1.05 crore, of this, 3.79 lakh

from Delhi. The percentage of slum population in Delhi to the

national level has been increased from 3.4 per cent in 2011 to

3.62 per cent in 2017. The information regarding estimated slum

population in India and Delhi during 2011-17 is depicted in Figure

6.1.

Figure 6.1: Estimated Slum Population in India & Delhi-2011-17

Census of India published the information regarding the

slum population in Delhi during 1981, 1991 and 20016 and the

same is presented in Table 6.3.

Table 6.3: Slum Population in Delhi: 1981-2001

(lakh)

No Details 1981 1991 2001

1. Total Population 57.22 84.19 128.60

2. Slum Population 18.00 22.48 36.63

3. Percent of Slum to Total 31.45 26.70 28.48 Source: - Census of India, Various Issues.

Page | 188

It may be inferred from Table 6.3 that the slum population

in Delhi increased from 18 lakh in 1981 to 36.63 lakh in 2001

recorded an annual growth rate at 5.18 per cent. During the same

period the population growth rate outweighs the slum population

by 1.06 per cent per annum. Census of India also published the

information regarding zone-wise number slums in Delhi7 during

1991 and 2001 and the same is presented in Table 6.4.

Table 6.4: Zone-wise Distribution of Slums in Delhi:

1991&2001.

(Number)

No Zones 1991 2001

No % No %

1 East 123 13.24 212 16.29

2 Central 93 10.01 139 10.68

3. North 227 24.40 302 23.21

4. West 204 22.00 270 20.75

5. South 282 30.35 378 29.05

Total 929 100.00 1301 100.00 Source: - Census of India.

It may be inferred from Table 6.4 that the number of slums

in south zone was higher during 1991 & 2001. During the same

period number of slums in Delhi increased from 929 in 1991 to

1301 in 2001. The zone-wise number of slums in Delhi is depicted

in Figure 6.2.

Page | 189

Figure 6.2: Zone-wise Slums in Delhi: 1991 & 2001. (Number)

The role of elected municipal governments for providing

adequate basic amenities to their citizens is one of the main

duties that were clearly envisaged in the 74th Amendment of

1992. The other important duties of the local municipal

governments are improvement of slums, upgradation of the

existing slums, reduction of poverty, providing training facilities for

attaining employment opportunities to the young generation etc.

All these can be best handled by municipal level authorities

through requiring local knowledge active participation of local

communities, the functions redistribute in natural need support

from the union and state governments. As far as slum

improvement programmes, as well as up gradation of the existing

slums are concerned the role of central government is very

limited. The introduction of the 74th Amendment and considering

the deep deteriorative condition of the slums, the slum population

had increased in most of the states, it is considered appropriate

that government may introduce some new policies for the

Page | 190

development of slums. he main factors behind the high rate of

growth of slums in cities are low wage level, poverty, unplanned

city growth and its planning, lack of all basic facilities, lack of

maintenance of existing facilities at the appropriate time, misuse

of existing facilities by a limited group of persons etc. These in

turn will create number of problems such as environmental

problems, especially pollution in air and water, various social

disorders, unhygienic living conditions etc.

In 2008-09, 65th Round of National Sample Survey

Organization under the Ministry of Statistics and Programme

Implementation conducted a survey regarding urban slums in

Delhi. The survey estimated that the number of urban slums in

Delhi during 2008-09 was at 43908. The following table clearly

narrates the distribution of urban slums in Delhi during 2008-09.

Table 6.5: Distribution of Urban Slums by Area in Delhi:

2008-09 No Area (Hectare) No. of Slums Per cent

1 Less than 0.5 872 19.86

2. 0.5-1.0 1266 28.84

3. 1.0-2.0 2100 47.84

4. 2.0 or more 152 3.46

5. Total 4390 100.00 Source: - 65

th Round of National sample Survey, Ministry of Statistics and

Programme Implementation, Government of India2008-09.

It may be observed from Table 6.5 that near about one half

of the total urban slums area was in between one and two

hectares. While more than 28 per cent of the urban slums area in

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Delhi during 2008-09 was in the range of 0.5-1.0 hectare. The

distribution of slums on the basis area in Delhi during 2008-09 is

depicted in Figure 6.3.

Figure 6.3: Distribution of Urban Slums by Area in Delhi:

2008-09.

The distribution of slums in Delhi on the basis of ownership

of land is presented in Table 6.6.

Table 6.6: Distribution of Slums in Delhi by Ownership of Land

No Ownership Number of Slums Per cent

1 Private 412 9.38

2. Local Bodies 2378 54.17

3. Railway 593 13.51

4. Others 464 10.57

5. Unknown 543 12.37

6. Total 4390 100.00 Source: - 65

th Round of National sample Survey, Ministry of Statistics and

Programme Implementation, Government of India2008-09.

The survey also narrates the distribution of slums by type

of structure. The information regarding the same is presented in

Table 6.7.

Page | 192

Table 6.7: Distribution of Slums in Delhi by Type of Structure.

No Type of Structure Number of Slums Per cent

1 Pucca 2184 49.75

2. Semi Pucca 1834 41.78

3. Serviceable Kutcha 372 8.47

4 Total 4390 100.00 Source- 65

th Round of National sample Survey, Ministry of Statistics and

Programme Implementation, Government of India2008-09.

The survey also mentioned that the basic facilities in the

urban households covering, safe drinking water, latrine facility,

electricity, etc. the information regarding the basic amenities

available to the urban slums in Delhi during 2008-09 is presented

in Table 5.8.

Delhi is one of the fast growing urbanized states in the

Indian union. The concentration of economic activities especially

in service sector attract the people from different parts of the

nation to the urbanized areas for employment, livelihood etc.

Delhi Urban Shelter Improvement Board is earmarked for the

development of slums and its activities in Delhi.

Delhi Urban Shelter Improvement Board (DUSIB) has

come in existence under Delhi Urban Shelter Improvement Board

Act, 2010 which has been passed by the Legislative Assembly of

the National Capital Territory of Delhi on the 01st April, 2010 and

has come in force by the orders of Hon'ble Lt. Governor of Delhi

on 1st July, 2010.

Page | 193

Table 6.8: Basic Amenities Available in Urban Slums of Delhi.

No Details Number of Slums Per cent

1. Safe Drinking Water

a. Tap 3847 87.63

b. Hand Pump/ Tube Well 391 8.91

c. Others 152 3.46

d. Total 4390 100.00

2.

Latrine Facility

a. Owned 344 7.84

i. Septic Tank 344 7.84

b. Shared 270 6.15

i. Septic Tank 121 2.76

ii. Pit 74 1.68

iii. Service 75 1.71

c. Public/ Community 2901 66.08

i. Septic Tank 2294 52.26

ii. Pit 32 0.73

iii. Service 575 13.10

d. No Latrine 875 19.93

e. Total 4390 100.00

3. Electricity

a. Street Light & Household Use 2093 47.68

b. Household Use only 1284 29.25

c. Street Light Only 866 19.73

d. No Electricity 147 3.35

e. Total 4390 100.00 Source: - 65

th Round of National sample Survey, Ministry of Statistics and

Programme Implementation, Government of India2008-09.

DUSIB is primarily responsible for the qualitative

improvement of slum settlements and providing various kinds of

services for slum dwellers in the city9. It also undertakes works

relating to provision of shelters to the urban poor / slum dwellers

under the policy for relocation of slum and JJ dwellers, including

the provisions of built up flats under exceptional circumstances,

when the properties / katras become dangerous / unfit for human

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habitation. The main thrust is to provide minimal civic

infrastructural facilities like toilets, bathrooms and Basti Vikas

Kendras (Community Centres) in JJ Clusters.

The broad activities of DUSIB are as follows;

Construction, Management and Maintenance of Night Shelters.

Construction of low cost Housing under EWS for Slum dwellers under Jawahar Lal Nehru National Urban Renewal Mission(JNNURM)

Relocation of squatters.

In-situ up-gradation.

Environmental Improvement in Urban Slums.

Construction of Pay and Use Jansuvidha (Toilet) Complexes.

Construction of Basti Vikas Kendras / Community Halls.

Structural Improvement and Rehabilitation of Katras.

Containing the size of Jhuggi Clusters and Development of Shishu Vatikas.

Study and Preparation of Perspective Plans for Delhi Slums

Government of Delhi started a Plan Scheme in 1997-98 for

providing minimum civic services i.e construction of road,

roadside drain and filling up of low lying area so as to maintain

hygienic conditions in slum areas. Government of NCT of Delhi

has established a special fund for development of unauthorized

colonies with an outlay of Rs. 2800 crore10 for the Eleventh Five

Year Plan Period (2007-12) to meet the expense on provision of

water supply, sewerage, roads, drains, sanitation, street lighting

and electrification etc,.

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Delhi Government has provided plan funds of Rs 185.00

crore during 2010-11 under this plan scheme and an amount of

Rs. 128.77 crore have been spent up to March 2011. These

colonies now proposed to be regularized and a Board for

Unauthorized Colonies has been constituted under the

chairmanship of Hon’ble Chief Minister of Delhi, which will advise

Government of NCT of Delhi on the process of regularization of

these unauthorized colonies. A total 1639 applications were

received and provisional regularization certificates have been

issued to 1218 unauthorized colonies in, 2008.

Government of India recently announced a new scheme

called Rajiv Awas Yojana (RAY)11 under JNNURM for the slum

dwellers and the urban poor people envisages a ‘Slum-free city’

through the active participation of States/Union Territories to

tackle the problem of slums in cities. An amount of Rs.9.78 crore

has been received from the Government of India. The main

objectives are;

Bringing existing slums within the formal system and

enabling them to avail of the same level of basic

amenities as the rest of the town.

Redressing the failures of the formal system that lie

behind the creation of slums and

Tackling the shortages of urban land and housing that

keep shelter out of reach of the urban poor and force

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them to resort to extra-legal solutions in a bid to retain

their sources of livelihood and employment.

Under this scheme States/Union Territories have to

undertake preparatory activities of conducting slum survey,

mapping of slums, developing slum information system,

undertaking community mobilization, preparation of Slum-free

City/State Slum-free Plans before seeking support under Rajiv

Awas Yojana. The Government of NCT of Delhi has already

submitted a detailed proposal to the Government of India for

under taking slum survey, mapping of slums, developing slum

information system, undertaking community mobilization etc.,

The inception of slums or jhuggi jhopri clusters started with

the development of cities. In Delhi the formation of slums

observed even before Independence. The main reason behind

the formation of slum clusters was due to various factors such as

flow of migrants from neighboring states for livelihood and

employment. The condition was manageable before 1970 and

most of slums were resettled. After 1970, the high pace of

development of Delhi and slow development in other cities in

northern India automatically speeding up the flow of migration of

Delhi with a massive increase in slum clusters.

Page | 197

The exact number of JJ Clusters was enumerated in a

survey conducted by Government of Delhi in 199012. The survey

report mentioned that there were 929 slum clusters and around

2.59 lakh households in Delhi. Delhi Urban Shelter Improvement

Board estimated the number of jhuggi jhopri clusters and slum

population of Delhi. The same was mentioned that around 643

slum clusters with 4 lakh households having a population of 20

lakh in Delhi. The Census 2001 also indicated about 20 lakh

persons residing in JJ Clusters of Delhi.

The Sub Mission II of the Jawaharlal Nehru National Urban

Renewal Mission (JNNURM) involves Basic Services to the Urban

Poor (BSUP) including the integrated housing and slum

development programme. The basic objectives are;

Focused attention to integrated development of

Basic Services to the Urban Poor in cities covered

under the mission.

Provision of Basic Services to Urban Poor including

security of tenure at affordable prices, improved

housing, water supply, sanitation and ensuring

delivery through convergence of other already

existing universal services of the Government for

education, health and social security. Care will be

Page | 198

taken to see that the urban poor are provided

housing near their place of occupation.

Secure effective linkages between asset creation

and asset management so that the Basic Services

to the Urban Poor created in the cities are not only

maintained efficiently but also become self-

sustaining over time.

Ensure adequate investment of funds to fulfil

deficiencies in the Basic Services to the urban poor.

Scale up delivery of civic amenities and provision of

utilities with emphasis on universal access to urban

poor.

Under Sub Mission-II Basic Services to the Urban Poor

(BSUIP) of JNNURM, Government of India has so far approved

15 Projects in Delhi (10 Projects of DSIIDC, 1 Project of DDA and

4 Projects of Slum Wing of MCD) with an estimated cost of

Rs.1814.51 crore. Till 31st March 2011, 13528 flats have been

completed and 35768 flats are under construction stage. The

Delhi Urban Shelter Improvement Board has been established

and nominated as nodal agency for the implementation of scheme

of relocation/rehabilitation of jhuggi jhopri clusters in Delhi like

improvement of environment, relocation and in-situ development

of slums in Delhi. The Board has allotted 85 flats to the eligible

slum dwellers of 2 JJ clusters.

Page | 199

Policy on Slums

1. The slums located in congested unhygienic areas of the

urban areas wherein equitable distribution of space is

not feasible shall be cleared and tenement schemes put

up.

2. Wherever in-situ development is feasible, such slums

be identified and taken up for in-situ improvement for

the provision of basic facilities to make the areas

habitable.

3. Wherever neither tenement scheme nor in-situ

development is feasible, rehabilitation & resettlement in

tenements in nearby locations be followed.

The urban poor have become an inevitable concomitant of

the development path of many countries including India, have

chosen or have been forced to choose. The poor in urban areas

not only prop up the economy, but they also help the city

governments make services economical because the poor offer

their labour at a very nominal rate. Imagine the city without the

poor malnourished loader, the scavenger and the conservancy

labour. Economically speaking, the urban poor make the city

living affordable and less costly than it would be. But seldom do

the not so poor care to help them to make their living affordable.

In order to be more meaningful, objectives and goals must be

translated into day-to-day practice in conjunction with the people

Page | 200

facing problems. That requires both dedication and sacrifice on

the part of city government and its staff and of the non-

governmental organizations, self help groups and volunteers and

whose support is so essential in any effort to reach the un-

reached.

Thus, slum clusters huge number of squatters deal in

collecting and trading of inflammable items, which may cause a

fire hazard thus affecting the safety of the inhabitants and

neighborhood population especially during summer period. The

area is prone to mishap during the monsoon season when the

storm water mixed with over flow of sewer may cause spread of

epidemic, pollution of water and spread of disease keeping in

view the slums squatters in question. It is quite apparent that the

in situ up gradation is not feasible at the existing sites due to their

high density and locational hazards. The only course left to the

land owning agency is to relocate them to safer areas with

adequate physical and social infrastructure.

The dominant discourse portrayed the slum population

mainly as a problem and not as a resource for environmental

management and city development. The concerns of the slum

dwellers, their poverty and livelihood problems were excluded

from the center stages of the discourse, except in political

rhetoric. Few government efforts reached the slum dwellers in a

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positive manner. Strategies for slum development were made to

correspond to a generalized image of the slums and their role in

the city development, while aspects of the slums, which did not

correspond to this stereotype image or other sub discourse, were

suppressed. The diversity and dynamics of the evolving slum

societies were underplayed and neglected.

If accepted that the stereotype and dominant image of

slum dwellers characterized in this chapter reflected the real

nature of local dynamics nor captured well the causes and effects

of urban environmental degradation, more empirical research

would be needed to understand who the slum dwellers really are,

what diversity of interests and capacity they possess, and how

they could become engaged in formulating alternative urban

strategies. Through recent public consultations organized by

some research institutions, NGOs in collaboration with the

government bodies, new empirical findings have been brought to

the attention of a variety of stakeholders, finding that provide a

more diverse, realistic and positive image of the slum dwellers.

Such changes in images are today increasingly reflected in

more positive attitude to slum rehabilitation. By the local

government accepting to take responsibility for slum upgrading,

more positive attitude are likely to emerge since the aim would

now be to build on whatever capacity the slum dwellers have and

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what the local resources are available. The new agenda for urban

politics, as promoted by civil society groups and critical

researchers, it is precisely to move issue of poverty

empowerment of slum dwellers and partnerships between city

government and the people to the center stage of urban politics –

and thereby create a new dominant discourse.

Public debate is essential for effective transformation of the

slums discourse and adoption of alternatives and more fruitful

perspective by the parties concerned. A combination of research,

advocacy and public reform might be needed to promote greater

pluralism in the discourse. Empirical research and along these

lines would require more than a simple analysis of the discourse –

understood as an analysis of the confrontation between

constructed ideas and images. It would require an understanding

of the variety of social and institutional stakeholders concerned,

their views, interest and influence, and specific outcome of their

interaction with each other and the government. It would require

a focus on historical events and processes, open public debate –

informed by empirical research - is a necessary condition for the

emergence of good government policies and practice based, less

on ideology constructed myths and more on empirical realities.

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Trends in Land Prices

Research on urban land price changes in developing

nations involves a variety of data from different sources.

Generally, there is a lack of uniformity in the data sources and as

such comparability of data from various sources is difficult. It is

observed that the availability of data from different sources

formed basis for a particular methodology applied in land price

research. Hence the need is to examine more closely the relative

utility of major data sources available for taking up research in

changing land price scenario. Exploratory analysis and diagnosis

of each data source facilitate to rule out or accept certain data

points in urban land price study. Without this, one takes a

common platform where one can globally compare the findings of

one study with others. This leads to assertions and wide scale

generalizations such as that land prices are increasing at a rapid

rate or sky rocketing. Anecdotal assertions based on isolated on

highly selective cases may not be corroborated once analyzed

empirically.

A meaningful analysis of the land registration information is

required immediately, especially at a time when international

agencies and multi-national agencies like United Nation’s

Development Programme (UNDP), World Bank, International

Monitory Fund and various other organizations show a

considerable concern to extend tools for land and housing market

Page | 204

management in developing nations in the world. In view of the

above World Bank stresses the desirability of developing nations

considering land price information as surrogates for land prices in

order that governments can then recoup service provisions, host

by ploughing back a proportion of land price change. Here in

India, data questions the applicability of associating registered

land prices with notional land price13.

The main advantage of collecting land price information is

to have information about land price changes also that occur at a

city wide level rather than simply explaining prices for very recent

deviations at the outskirts of the city. Land price information is

available through out the city in most of the developing nations in

the world. It is an important data but the need is to analyse the

data in a comprehensive manner to explore its potential.

Nature of Land Price Information

In India the land price data are available at the Tehsil office

(land registration office) with a breakup to the level of colonies,

mohallas, (The term mohalla is normally used for old settlements

that are mainly located in older areas of the city.) and villages

located within the city limits. There are usually two main data

sources at the land registration office or tehsil office level that

provide the land price information. The first main source

comprises confidential records of what can be termed as first level

Page | 205

data. These are unpublished and contain basic details of

individual property transactions that have taken place in the city

over a period of time. These records have information on each

type of property transaction, ie. house and land (plot) and are

used by the state and private individuals for completing property

searches in order to ascertain plot or house ownership. One must

be careful with these data sources because of listings of the

house and land transactions are unsorted in the records.

Moreover there are many types of registrations for land and

house transactions. Types of registrations recorded in the

confidential records at the first level are numerous. For example,

registrations include gift deed, partition deed, errata, cancellation

of sale deed, surrender deed, re-conveyance deed, mortgage,

return of mortgage, rent deed, receipt, assignment deed,

agreement deed, sale deed, etc. With these records, what should

concern the researcher is the data for the plot sale, which have

been registered as a sale deed or agreement. These are the only

types of registration under which land is actually sold. In this

respect the data reflect land transactions that include;

(i) Plot size,

(ii) Declared price of the plot (also known as registered

price or the consideration money)

(iii) Valuation price as assessed by the officials of the

revenue department,

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(iv) Date of presentation of registry papers in the land

registration office/ tehsil office (i.e. the date the

transaction occurs)

(v) The date of registration in the land registration /

tehsil office

(vi) Name of the seller and buyer and

(vii) Location of the Plot in the colony.

For research purposes, access to this first level of

information can be obtained easily in a reasonable time14.

The tehsil /land registration office in India also collects the

information confidentially at the so called second level. These

contain explanatory details of each property transaction as cited

in the confidential report of the earlier mentioned first level. The

second level records are extremely voluminous and are

unpublished. Keeping in mind the time limits of the research it

may not be wise to opt for a data collection from the second level

over the confidential records of the first level. In addition, access

to the confidential report of the second level is less assured.

When the purpose of collecting land price information is partly met

by the confidential report of the first level, there seems little

practical gain in investing huge amount of time with the

confidential records of the second level.

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The third data source consists of open / public records.

This information is unambiguously in the public domain. It is

published data sources and contains city wide estimated land

prices. The main purpose of this information is to minimize the

under valuation of landed property in the registration office / tehsil

office and to raise the revenues. The fixing of these prices at city

level is largely contingent upon changes in land and revenue

policies over a period of time. Since these policies vary from

state to state; comparability of the price with the rate prices

remaining in other state is not straight forward or more

complicated or difficult or impossible. The rate is the minimum

market price of land expressed in terms of Rupees per unit of

land. It is determined on the basis of a sub set of example land

prices as informed by the property developers, colonizers, open

market sale deed and rates of urban development and housing

authorities in the state sector. Even knowing that the actual

market prices are always higher than the prescribed rate, the

latter are city wide kept to the minimum level. The government

has taken the conscious decision to maintain minimum price in

order not to discourage land registration at the concerned office.

Thus, given priority to extend registration rather than technical

accuracy of the land price value. In this way, it is expected that

revenue will be maximized and not lost through the failure to

register land by selling plots on a Power of Attorney basis.

Power of Attorney includes any instruments (not chargeable with

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a fee under the law relating to court fees for the time being in

force) empowering a specified person to act for and in the name

of person executing it.

Limitations of Land Price Information

The Information of Land Price available from the

confidential records of the Land Registration Office / tehsil office

is rarely intact or complete for every year. It is generally

maintained in hand written basis that are often found by the

researchers to be in a damaged form or illegible condition. It

depends upon the use to which these books / register have been

put, and that is normally contingent upon the number and the

frequency of the transaction of property in a year. It is a general

practice for lawyers, individuals and property developers to

enquire about the basic information of the property before

conveyance.

It is unlikely that the valuation price of each plot will be

shown throughout the confidential records of the first level.

Therefore, the information on the Registrar’s assessment value as

noted in the registers may not always be available. However,

even if sufficient registers were available, the comparability of the

assessment values would be weak in two aspects. The first is that

valuation prices determined before the stipulation of the circle

rates might be inconsistent since these were decided by the Chief

Page | 209

Registrar under the Indian Stamp Act Rules. Though the rules are

quite clear for the plot valuation, actual plot valuation in the land

registration office is often quite arbitrary and idiosyncratic. It may

be adjusted so as to provide benefits to all concerned- the valuer,

the appropriator and the buyer. Underassessment of prices in the

land registration office records is almost universal. It is likely to

occur whenever taxation on land transaction is stringent and

particularly where it is high. Underassessment is not common for

the transactions of the state institutions or state based money.

The second reason for a lack of comparability in the data

sources is the addition of one –off statutory reassessments.

These reassessments are rarely applied evenly across the city

and thus affect a small subset of plots in colonies. They do

however, account for significant difference in the circle rates

among colonies, as some include the additional assessments

while others do not. Without an intimate knowledge of the city and

significant amounts of cross checking, it is difficult to control for

plots that have been subject to this assessment.

The records of the first level do not show the proper

address of the seller or buyer of the plot sold. They tell us about

the plot number and the situation on two sides of the plot. Since

the address of the plot owner is not recorded in the first level, it is

hardly possible to cross check the land prices of one plot (as

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recorded in the first level) to the same plot through a household

survey. Of course, an address can be obtained from the second

level records, but one has to overcome two problems; first, get

access through the officials, and second, the enormous amount of

time required in reviewing these records. Another complication is

that in most cases the plot number does not correspond to the

present house number, ie. Subdivisions are made on different

numbers, and once house are built, the local authorities often

assigns different numbers to the individual houses.

Factors Influencing Land Prices

The following factors determine the land price of urban

area of any country. They are:

a. Locational Advantage: - Whether the particular

land is adjacent to the main road or other important

roads, near to the public utility places constructed by

the urban local bodies/ development authorities /

Municipal corporations at the government cost of the

public exchequer.

b. Land use:- The value of the land significantly

increases as the land use assigned to a piece of

land in the plan changes from low importance to a

higher importance like from public street or park and

open space to a institutional or commercial or

official, etc,. The land owners thus benefit or suffer

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from the somewhat artificially determined and

externally imposed factors by which they are bound

even without there will.

c. Amenities: - The cost of the land changes from the

provision of infrastructural facilities by the urban

local bodies/ urban developmental authorities or

other service providing agencies in terms of facilities

like road, transport, communication, water supply,

sanitation, electricity, power, etc,.

d. Inherent Value: - It is related to the buildability on

building potential of the land in an urban area.

e. Floor Area Ratio (FAR):- It is an important factor

determining the market value of any land. For

example, if the planning authority increases the

FAR, the market value of the land almost doubles; if

it is increased three times, the market value also

trebles and so on. The owners of the land have no

contribution, whatsoever, that would justify their

appropriating all the benefits arising from the

enhancement of FAR for them.

f. Speculation: - Generally it is called scarcity value.

Whenever the demand is higher than the supply,

speculation arises. The fast rate of growth of

population and the development in urban areas

leads to a migratory movement of the people from

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rural areas to the cities; the demand for serviced

land perpetually outstrips its supply leading to ever

rising price of land. Whenever there is a scarcity,

there is a speculation and therefore, it would not be

incorrect to conclude that urban land prices include

high degrees of speculative factor.

g. Black market: - There is no secret that black market

value of any piece of land is far more than its value

in the legal market, mainly for exemption of stamp

duty, income, wealth and other taxes. There is thus,

a significant black market component attached to

the market value of urban land, as specified in the

documents in the records of sale transaction.

h. Changes in Interest Rate: - Decline in the interest

rate in the formal banking system is also another

important factor for changes in the price of land. It is

an inverse relation, that is, decline in the interest

rate in the banking system leads to enhancement of

investment in real estates and which in turn

increases the price of land and vice-versa.

i. Recent Developments of Service Sector: - The rapid

growth of Information Technology (IT), Information

Technology Enabled Services (ITES), Business

process Outsourcing (BPO), Special Economic

Zones (SEZ)15, Industrial Parks (IP), Foreign Direct

Page | 213

Investment (FDI) and other service industries

handled by the multinational companies require lot

of space in the urban area. These companies are

purchasing the land at a higher rate than the market

forces of demand and supply of land16. This in turn

leads to increase in the price of land.

Thus, number of factors influences the price of urban land

whether it is for residential or commercial or industrial use. In

order to understand the causes as well as providing land for

residential purposes or residence mainly to economically and

socially weaker sections of the society, the policy makers,

academicians, researchers, social scientists, etc, need to know

the average price of land in particular city or area. In this

connection, the Research Scholar has undertaken a study on the

basis of random sample survey, supported by series of

discussions and interactions with the officials at the centre,

Government of National Capital Territory of Delhi, New Delhi

Municipal Council, Municipal Corporation of Delhi, Delhi

Cantonment Board, researchers, academicians, non-

governmental organizations, self help groups, consultants,

property dealers/developers, real estate agents, etc,.

Page | 214

The information mentioned in this thesis narrates both

maximum and minimum land prices with the prevailing market

trend. The maximum and minimum land prices have been culled

out on the basis of locational advantage mainly the accessibilities

of various infrastructure facilities and other disadvantages of the

particular locality. The market value of land in Delhi was collected

from the well known real estate agents, their associations and

property dealers with the active co-operation of the Government

of NCT of Delhi, Delhi Development Authority and the like. The

whole area of Delhi was categorized into five zones namely

Central, North, South, East and West zones respectively. The

information regarding study of urban residential land has been

collected from 250 localities spread over five different zones in the

city and in each zone fifty localities covered for the purpose. It

covers both the minimum and maximum land prices of residential

land for six years from 2005 to 2010.

The information regarding the urban residential land price

of Delhi was derived in the units of Rupees per square ft. The

average residential land price of Delhi during 2005-2010 is

presented in Table 6.9.

Page | 215

Table 6.9: Market Price of Residential Land in Delhi 2005-2010.

No Years Land Price (Rs./Sq. Mtr)

Minimum Maximum Average

1 2005 114608 139972 127290

2 2006 136588 165112 150850

3 2007 163110 199992 181550

4 2008 165828 200972 183400

5 2009 152080 180948 166514

6 2010 160028 191588 175808

Source: - Field Survey 2010.

It may be observed from Table 6.9 that the average market

price of urban residential land increased from Rs. 127290 per sq.

mtr. in 2005 to Rs. 175808 per sq. mtr in 2010 recording an

annual growth rate of 6.35 per cent. During the same period the

minimum average market price of urban residential land

increased from Rs. 114608 per sq. mtr to Rs. 160028 per sq. mtr

recording an annual growth rate of 6.61 per cent. In the case of

the maximum average market price of residential land annual

growth rate is 6.15 per cent. The market price of urban residential

land in Delhi recorded highest during 2008. Due to economic

slowdown in the world economy, inflationary tendencies and

increase tendencies of prices of yellow metals in the world the

real estate prices showed a declining trend in during 2009. But

the timely intervention of Government and hopes for profit for

investing in real estate sector the prices of residential land

Page | 216

increases at a slow pace than the first portion of the period

covered under the study. The difference of maximum and

minimum average market price of urban residential land in Delhi

showed an increasing trend during the first half of the period

covered under the study and then reduced during 2009 and once

again improved a positive trend in 2010. The market price of

urban residential land in Delhi both minimum and maximum price

is depicted in Figure 6.4.

Figure 6.4 Market Price of Urban Residential Land In Delhi

2005-2010. (Rs. per sq. Mtr)

2005 2006 2007 2008 2009 2010

The information regarding the growth rate of market price

of urban residential land in Delhi during 2005-2010 is presented in

Table 6.10.

Page | 217

Table 6.10 Growth Rates of Market Price of Residential Land in Delhi.

No Years Growth Rates (Per Cent)

Minimum Maximum Average

1. 2005-06 19.18 17.96 18.51

2. 2006-07 19.42 21.13 20.35

3. 2007-08 1.67 0.50 1.02

4. 2008-09 -8.29 -9.96 -9.21

5. 2009-10 5.23 5.88 5.58

6. 2005-10 39.63 36.88 38.12

Source: - Field Survey 2010.

It may be observed from Table 6.10 that the growth rate of

average market price of residential land in Delhi during 2005-10

was recorded at 37.84 per cent. While the growth rate of average

maximum and minimum market price of residential land in Delhi

were at 36.88 per cent and 39.63 per cent respectively. In

minimum as well as maximum market price of urban residential

land in Delhi the growth in 2008-09 was lowest and recorded

negative growth as compared with the price of urban residential

land during the previous year covered under the study. Analysis

showed the growth of minimum market price of residential land

was the highest in 2006-07 but later on it increased at a lesser

rate and become negative in 2008-09 and once again increased

at a slow pace. Growth rate of maximum market price of

residential land in Delhi was the highest during 2006-07 which

witnessed reducing trend during the later period covered under

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the study including a negative growth during 2008-09. On an

average market price of residential land in Delhi showed an

increasing trend during 2005-2010; at an average growth rate of

6.35 per cent per annum.

The information regarding the growth of average market

price of urban residential land in Delhi including both minimum

and maximum prices during 2005-10 is depicted in Figure 6.5.

Figure 6.5: Growth of Urban Residential Land in Delhi during 2005-10

(Per Cent)

Page | 219

Information regarding the market price of land is vital and is

one of the basic resources. Like any other resources, the

information on market price of land is also available in various

forms. Some people are in possession of it or have access to it

and others need it but do not have it. Those who have it can use

it, waste it, market it or else give it away. But it is useful and

hence its value will remain the same however much it is used; yet

it cannot be destroyed or corrupted. It can be transformed, yet it

remains with the transfer. It is indivisible, yet it can be

accumulated. It has tremendous importance both from the social

and cultural point of view but, on its own, it has been very material

use- its value is tangible only when the information on land prices

in the particular city is used for productive purposes like as a

module for policy formulation, valuation, implementation and

monitoring and evaluation of various policies introduced by the

government from time to time or we can say with other tangible

products. The policy makers, town planners, social scientists,

academicians and researchers dealt with the land price

information on various matters. Thus the information regarding

the land price is major information. There is a wide hierarchy of

needs for such information on land from the point of view of

sovereignty, defence, public safety, protecting the welfare of all

sections of the society.

.

Page | 220

Table 6.11 Zone-wise Urban Residential Land Price in

Delhi: 2005-10.

(Rs. Per sq. Mtr)

No Years Central North South East West Total

1 2005

i. Min 238600 61400 153800 48140 71100 114608

ii. Max 278000 84100 182100 61460 94200 139972

iii. Av 258300 72250 167950 54800 82650 127290

2 2006

i. Min 271000 83500 183800 57840 86800 136588

ii. Max 311800 107700 218100 76060 111900 165112

iii. Av 291400 95600 200950 66950 99350 150850

3 2007

i. Min 317300 106100 214900 72140 105110 163110

ii. Max 365500 150600 251400 93360 139100 199992

iii. Av 341400 128350 233150 82750 122100 181550

4 2008

i. Min 319740 106900 225200 69400 107900 165828

ii. Max 370700 145200 261700 88460 138800 200972

iii. Av 345220 126050 243450 78930 123350 183400

5 2009

i. Min 292700 95100 210400 64700 97500 152080

ii. Max 335000 127400 242200 79540 120600 180948

iii. Av 313850 111250 226300 72120 109050 166514

6 2010

i. Min 313540 98220 215880 68700 103800 160028

ii. Max 365920 131860 247920 84540 127700 191588

iii. Av 339730 115040 231900 76620 115750 175808

Source: - Field Survey 2010.

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As already mentioned Delhi is divided into five zones for

the analysis of market value of land price in the city namely

central, north, east and west zones respectively. The information

regarding the market price of urban residential land in the above

mentioned zones in Delhi during the years 2005-10 is presented

in Table 6.11

It may be observed from Table 6.11 that the highest

average market price of urban residential land in Delhi during the

year 2010 was in Central Zone at Rs.339730 per Sq. Mtr. The

highest minimum and maximum market price of urban residential

land during 2010 was also observed in the same Central zone of

the city at Rs.313540 per sq. Mtr and Rs. 365920 per sq. mtr.

respectively. While the lowest average, minimum and maximum

market price of urban residential land in Delhi during the same

period covered under the study was observed in East Zone of

Delhi at Rs. 76620 per sq. mtr, Rs. 68700 per sq. mtr and

Rs.84540 per sq. mtr. respectively. The lowest and highest

average market price of urban residential land in Delhi during the

initial period covered under the study was also observed in

Central Zone and West Zone at Rs.258300 per sq. mtr and Rs.

54800 per sq. mtr. respectively. The minimum and maximum

market price of urban residential land in Central Zone during 2005

was observed at Rs.238600 per sq. mtr. and Rs. 278000 per sq.

Page | 222

mtr. respectively. The minimum and maximum market price of

urban residential land in East Zone during 2005 was observed at

Rs.48140 per sq. mtr and Rs. 61460 per sq. mtr respectively. This

clearly indicates the fact that the development process, all other

basic facilities in East Zone was comparatively lesser and the

future scope for increasing the development activities in this zone

was gloomy. On the contrary the highest market price of urban

residential land in all the period covered under the study showed

highest in Central Zone of Delhi; which in turn implies that the

highest level of infrastructure facilities in the Indian Union. All the

basic facilities are available within in the Central Zone itself. In

addition this zone is the nerve of Indian system; occupies

residences or offices of India’s top political, economic,

representatives of foreign dignitaries, etc. While other zones of

Delhi are having high potential for the growth and development as

compared with other parts of India and the residential prices are

also showed the indicator for the speedy development in these

zones.

The information regarding zone-wise ie. Central, North,

South, East and West Zones growth rates of market price of

urban residential land in Delhi during 2005-b 10n is presented in

Table 6.12.

Page | 223

Table 6.12 Zone-wise Growth Rates of Urban Residential Land Price in Delhi: 2005-10.

(Per cent)

No Years Central North South East West Total

1 2005-06

i. Min 13.58 35.99 19.51 20.14 22.08 19.18

ii. Max 12.16 28.06 19.77 23.76 18.79 17.96

iii. Av 12.81 31.41 19.65 22.17 20.21 18.51

2 2006-07

i. Min 17.08 27.06 16.92 24.72 21.09 19.42

ii. Max 17.22 39.83 15.27 22.75 24.31 21.13

iii. Av 17.15 34.25 16.02 23.60 22.90 20.35

3 2007-08

i. Min 0.77 0.75 4.79 -3.80 2.66 1.67

ii. Max 1.42 -3.59 4.09 -5.25 -0.22 0.50

iii. Av 1.12 -1.79 4.42 -4.62 1.02 1.02

4 2008-09

i. Min -8.46 -11.04 -6.57 -6.77 -9.64 -8.29

ii. Max -9.63 -12.26 -7.45 -10.08 -13.11 -9.96

iii. Av -9.07 -11.74 -7.04 -8.63 -11.59 -9.21

5 2009-10

i. Min 7.12 3.28 2.60 6.18 6.46 5.23

ii. Max 9.29 3.50 2.36 6.29 5.89 5.88

iii. Av 8.24 3.41 2.47 6.24 6.14 5.58

6 2005-10

i. Min 31.41 59.97 40.36 42.71 45.99 39.63

ii. Max 31.64 56.79 36.15 37.55 35.56 36.88

iii. Av 31.53 58.13 38.08 39.82 40.05 38.12

Source: - Field Survey 2010.

Page | 224

It may be observed from Table 6.12 that the highest growth

rates of market price of urban residential land in Delhi during the

period covered under the study was observed in north zone of

Delhi at 9.69 per cent per annum. The reason behind the fast

growth rates in this zone was due to various reasons such as fast

development during the last decade, opening up of metro

corridors, high level of infrastructure facilities, initiating various

developmental activities such as SEZs, industrial parks etc,.

While the lowest growth rates of market price of urban residential

land in Delhi during the period covered under the study was

observed in central zone at 5.26 per cent per annum. This zone

has already reached the saturated level and the availability of

land in this zone is rare. In addition the cost of land in central

zone of Delhi was comparatively higher than in all other zones in

Delhi and a good percentage of buyers compelled to purchase

the land from other zones. The second, third and fourth positions

of growth of market price of urban residential land in Delhi was

observed in west, east and south zones respectively at 6.68 per

cent, 6.64 per cent and 6.35 per cent per annum respectively

during the period covered under the study.

The highest average market price of urban residential land

in Delhi during the year 2010 was observed in CP Barakhamba

Road and Teen Murti of central zone of Delhi at Rs. 515000 per

sq. mtr. The highest minimum market price of urban residential

Page | 225

land in Delhi during the same period was observed in CP

Barakhamba Road of Central Zone of Delhi at Rs. 500000 per Sq.

mtr and highest maximum urban residential land was observed in

Teen Murti of central Zone of Delhi at Rs. 540000 per Sq. mtr.

respectively. On the contrary, the lowest minimum, maximum and

average market price of urban residential land in Delhi during

2010 was recorded in Ghonda of east Zone of Delhi at Rs.18000

per sq. mtr, Rs.32000 per sq. mtr and Rs. 25000 per Sq. mtr

respectively. This clearly indicates the fact that there was a wide

gap of price of urban residential land both minimum and

maximum in Delhi during the period covered under the study. This

may be due to various reasons such as availability of various

infrastructure facilities, speculation of the people for future

development, introduction of metro corridors, state intervention

especially in the introduction of special economic zones, industrial

parks, export oriented units, institutes of high excellence, etc,.

In central zone of Delhi the highest maximum market price

of urban residential land was observed in Teen Murti area at Rs.

540000 per sq. mtr. during the year 2010 while the highest

minimum market price of urban residential land was observed in

CP Barakhamba Road at Rs. 500000 per sq. mtr. The lowest

minimum market price of urban residential land in central zone of

Delhi during 2010 recorded in Yamuna Bazar at Rs. 132000 per

sq. mtr. and lowest maximum market price of urban residential

Page | 226

land in Delhi during the same period recorded at Rs. 180000 per

Sq. mtr. in three localities namely Mori Gate, Mandir Marg and

Yamuna Bazar respectively. The lowest average market price of

urban residential land in central zone of Delhi during 2010 was

observed in Yamuna Bazar at Rs. 165000 per sq. mtr.

In north zone of Delhi, the highest maximum market price

of urban residential land during the year 2010 was observed in

Ashok Vihar and Kamala Nagar at Rs. 205000 per sq. mtr and

lowest at Rs.45000 per sq. mtr. in Gandhi Vihar. The highest and

lowest minimum market prices at Rs. 155000 per sq. ft and Rs.

22000 per sq. mtr were observed in Ashok Vihar and Sant Nagar

Burari localities respectively. The highest difference between the

maximum and minimum market price of urban residential land in

northern zone of Delhi was observed in GTB Nagar locality and

lowest at Nirankari Colony during the same period covered under

the study.

In south zone of Delhi, the highest maximum, minimum

and average market price of urban residential land was observed

in Khan Market/ Lodi Colony during the year 2010 at Rs. 452000

per sq. mtr, Rs. 425000 per sq. mtr and Rs. 438500 per sq. mtr.

respectively. The lowest maximum, minimum and average market

price urban residential land in south zone of Delhi was recorded in

Methapur locality at Rs. 55000 per sq. mtr, Rs.45000 per sq.mtr.

Page | 227

and Rs.50000 per sq. mtr. respectively during the same period

covered under the study. The highest difference between the

maximum and minimum market price of urban residential land in

this zone was observed in Vasant Vihar at Rs. 105000 per sq.

mtr. and lowest of Rs. 5000 per sq. mtr at Tara Apartment

respectively.

The highest maximum, minimum and average market price

of urban residential land in east zone of Delhi during the year

2010 was observed in Preet Vihat at Rs. 255000 per sq. mtr, Rs.

215000 per sq.mtr and Rs. 235000 per sq. mtr. respectively. On

the other hand the lowest minimum, maximum and average

market price of urban residential land was recorded at Rs. 18000

per sq. mtr, Rs. 32000 per sq.mtr. and Rs. 25000 per sq.mtr. in

Ghonda locality and this is lowest recorded market price of urban

residential land in entire Delhi. The difference between the

maximum and minimum market price of urban residential land

recorded highest in Karkardumma at Rs. 43000 per sq. mtr. and

lowest in three localities namely Pandav Nagar, Shasthri Nagar

and Wazirabd at Rs. 5000 per sq. mtr.

The information regarding the market price of urban

residential land both minimum and maximum price of 250

selected localities during 2005- 2010 is presented in Annexure 1.

The information regarding the price range-wise market price of

Page | 228

urban residential land in Delhi during the year 2010 is presented

in Table 6.13.

Table 6.13: Price Range-wise Distribution of Localities in

Delhi during 2010. No Price Range(Rs. Per sq.mtr) No. of Localities

Minimum Maximum

1. Up to 74999 52 (20.80) 31 (12.40)

2. 75000-149999 98 (39.20) 86 (34.40)

3. 150000-224999 32 (12.80) 49 (19.60)

4. 225000-299999 29 (11.60) 26 (10.40)

5. 300000+ 39 (15.60) 58 (23.20)

Total 250 (100.00) 250(100.00)

Source: - Field Survey 2010. Note: Figures in parenthesis relate to percentage to total.

It may be observed from Table 6.13 that three fifth of the

localities, the minimum price was up to Rs. 149999 per sq. mtr.

during the last period covered under the study .ie. in 2010. While

the remaining three price range-wise classification, the highest

number of localities lies in the range of above Rs. 3 lakh per sq.

mtr. at 15.6 per cent. The other two ranges contribute 12.8 per

cent and 11.6 per cent of the price of localities. On the other hand

the maximum price, the highest percentage of localities land price

was in the Near about one fourth of the localities maximum

market price of urban residential land was in the highest price

range of Rs. 3 lakh per sq. mtr. or more. Like-wise the lowest

price range category had less number of localities in maximum

land price and this constituted on 12.40 per cent of the total

Page | 229

localities covered under the study. The information regarding the

distribution of land price of Delhi on the basis of price-range

during 2010 is depicted in Figure 6.6

Figure 6.6: Price Range-wise Distribution of Localities in Delhi during 2010.

The information regarding the distribution of land price of

Delhi on the basis of price-range during 2005-2010 is presented

in Table 6.14.

Page | 230

Table 6.14: Price Range-wise Distribution of Localities in Delhi during 2005-2010.

No Years No. of Localities/ Price Range (Rs. Per sq. mtr.) Upto 74999

74999-149999

150000- 224999

225000- 299999

300000+ Total

1. 2005

Min 116 (46.40)

68 (27.20)

33 13.20)

12 (4.80)

21 (8.40)

250 (100.00)

Max 69 (27.60)

92 (36.80)

40 (16.00)

19 (7.60)

30 (12.00)

250 (100.00)

2. 2006

Min 74 (29.60)

84 (33.60)

40 (16.00)

24 (9.60)

28 (11.20)

250 (100.00)

Max 40 (16.00)

99 (39.60)

43 (17.20)

28 (11.20)

40 (16.00)

250 (100.00)

3. 2007

Min 50 (20.00)

88 (35.20)

52 (20.80)

24 (9.60)

36 (14.40)

250 (100.00)

Max 26 (10.40)

81 (32.40)

59 (23.60)

30 (12.00)

54 (21.60)

250 (100.00)

4. 2008

Min 49 19.60)

92 (36.80)

38 (15.20)

32 (12.80)

39 (15.60)

250 (100.00)

Max 26 (10.40)

76 (30.40)

62 (24.8)

19 (7.60)

67 (26.80)

250 (100.00)

5. 2009

Min 60 (24.00)

92 (36.80)

38 (15.20)

28 (11.20)

32 (12.80)

250 (100.00)

Max 38 (15.20)

80 (32.00)

54 (21.60)

30 (12.00)

48 (19.20)

250 (100.00)

6. 2010

Min 52 (20.80)

98 (39.20)

32 (12.80)

29 (11.60)

39 (15.60)

250 (100.00)

Max 31 (12.40)

86 (34.40)

49 (19.60)

26 (10.40)

58 (23.20)

250 (100.00)

Source: - Field Survey 2010. Note: Figures in parenthesis relates to percentage to total.

It may be observed from Table 6.14 that during the initial

period covered under the study the highest number of localities

where the price was in the lower categories namely up to Rs. 1.5

lakh per sq. mtr. and it constitutes near about three fourth in the

Page | 231

case of minimum market prices and near about two third in the

case of maximum market prices. As a general tendency, as time

passed the market price of land in Delhi has affected economic

slowdown of the international scenario the prices of land had also

affected a decreasing tendency and later part of the period

covered under study showed a recovery phase of the economy.

During the last year covered under the study the minimum prices

of localities below the rate of Rs. 1.5 lakh per sq. mtr. constituted

just one half of the total localities covered under the study. This

clearly indicates the positive relation of increase the prices of

residential land in Delhi. The same in the case of maximum prices

during the last period showed at 46.8 per cent. The information

regarding price range wise distribution of localities in Delhi during

2005-10 is depicted in Figure 6.7.

Figure 6.7: Price Range-wise Distribution of Localities in

Delhi 2005-2010

Page | 232

Table 6.15: Zone-wise, Price Range-wise Distribution of Localities in Delhi during 2005-2010

No Years/ Zones

Number of Localities/ Price Range (Rs. Per sq. mtr.)

Upto 74999

74999-149999

150000- 224999

225000- 299999

300000+ Total

Min Max Min Max Min Max Min Max Min Max Min Max

1 2005

central - - 7 - 18 14 10 13 15 23 50 50

North 39 21 10 24 1 5 - - - - 50 50

South 5 4 23 14 14 19 2 6 6 7 50 50

East 42 35 8 15 - - - - - - 50 50

West 30 9 20 39 - 2 - - - - 50 50

Total 116 69 68 92 33 40 12 19 21 30 250 250

2 2006

central - - - - 13 6 17 13 20 31 50 50

North 21 10 22 30 7 9 - - - - 50 50

South 4 2 13 7 18 18 7 14 8 9 50 50

East 35 23 15 23 - 4 - - - - 50 50

West 14 5 34 39 2 6 - - - - 50 50

Total 74 70 84 99 40 43 24 28 28 40 250 250

3 2007

central - - - - 8 3 13 8 29 39 50 50

North 13 4 23 22 14 17 - 7 - - 50 50

South 2 1 8 7 22 14 11 14 7 14 50 50

East 30 20 15 24 5 5 - 1 - - 50 50

West 5 1 42 28 3 20 - - - 1 50 50

Total 50 26 88 81 52 59 24 30 36 54 250 250

4 2008

central - - - - 3 2 17 3 30 45 50 50

North 9 2 32 21 9 25 - 2 - - 50 50

South 2 1 7 6 18 11 14 12 9 20 50 50

East 34 22 10 21 6 6 - 1 - - 50 50

West 4 1 43 28 2 18 1 1 - 2 50 50

Total 49 26 92 76 38 62 32 19 39 67 250 250

5 2009

central - - 1 - 7 5 18 12 24 33 50 50

North 10 6 39 24 1 20 - - - - 50 50

South 2 1 8 7 22 14 10 16 8 12 50 50

East 37 25 9 16 4 8 - 1 - - 50 50

West 11 6 35 33 4 7 - 1 - 3 50 50

Total 60 38 92 80 38 54 28 30 32 48 250 250

6 2010

central - - 1 - 3 3 16 5 30 42 50 50

North 10 5 39 24 1 21 - - - - 50 50

South 2 1 9 7 18 10 12 19 9 13 50 50

East 33 23 12 18 5 8 - 1 - - 50 50

West 7 2 37 37 5 7 1 1 - 3 50 50

Total 52 31 98 86 32 49 29 26 39 58 250 250

Page | 233

The zone-wise, price range wise distribution of localities in

both minimum and maximum market price of urban residential

land in Delhi during 2005-10 is presented in Table 6.15.

It may be observed from Table 6.15 that large number of

localities both in maximum and minimum land price of central and

a few of the south zones were recorded the highest price range.

While other zones in Delhi showed higher percentage of localities

in lowest and next higher price range category.

In order to understand the growth pattern of urban

residential land in Delhi both minimum and maximum price an

attempt has been made to analyze its growth during 2005-2010.

The information regarding the growth of market price of urban

residential land is divided in to six categories namely up to 0 per

cent, 1-25 per cent, 26-50 per cent, 51-75 per cent, 76-100 per

cent and 101 per cent and above respectively. This analysis will

help the policy makers to understand the growth pattern of land

price in Delhi during the period covered under the study and they

can implement various policies or strategies or programmes for

sorting out the problems. The information regarding the

percentage growth of market price of residential land in Delhi both

minimum and maximum during the period covered under the

study is presented in Table 6.16.

Page | 234

Table 6.16: Growths Rate-wise Distribution of Localities in Delhi During 2005-2010.

No Growth Rate (per cent) Localities

Minimum Maximum

1. Up to 0 15 (6.00) 16 (6.40)

1. 1- 25 67 (26.80) 76 (30.40)

2. 26-50 66 (26.40) 71 (28.40)

3. 51-75 45 (18.00) 32 (12.80)

4. 76-100 19 (7.60) 33 (13.20)

5. 101+ 38 (15.20) 22 (8.80)

6. Total 250 (100.00) 250 (100.00)

Source: - Field Survey 2010. Note: Figures in parenthesis relates to percentage to total.

It may be observed from Table 6.16 that near about three

fifth of the localities growth rate of minimum price was up to 50

per cent. In the case of maximum price of urban residential land in

Delhi the same price growth rate range up to 50 per cent

constituted at 65.2 per cent. The highest growth rate category of

more than cent per cent constituted comparatively less

percentage of localities; 15.2 in the case of minimum market price

of urban residential land and 8.8 per cent in the case of maximum

urban residential land respectively during the period covered

under the study. A notable fact that negative percentage of

growth rate showed in the urban residential land price of Delhi

both in minimum and maximum price due to the economic

slowdown of in the international scenario and its percentage

recorded during 2005-10 at 6 per cent in the growth category of

Page | 235

minimum land price and 6.4 per cent in maximum urban

residential land price respectively. The information regarding

growth rate-wise distribution of localities in Delhi during 2005-

2010 is depicted in Figure 68.

Figure 6.8: Growth Rate-wise Distribution of Localities in Delhi during 2005-2010.

The information regarding the zone-wise growth rate of

market price of urban residential land in Delhi during 2005-10 is

presented in Table 6.17.

Page | 236

Table 6.17: Growths Rate-wise & Zone-wise Distribution of Localities in Delhi during 2005-10.

No Growth Rates (%)

Number of Localities

Central North South East West Total

1. Upto Zero

a. Minimum 7 (14.0)

2 (4.0)

2 (4.0)

2 (4.0)

2 (4.0)

15 (6.0)

b. Maximum 6 (12.0)

1 (2.0)

2 (4.0)

4 (8.0)

3 (6.0)

16 (6.4)

2. 1-25

a. Minimum 21 (42.0)

7 (14.0)

15 (30.0)

14 (28.0)

10 (20.0)

67 (26.8)

b. Maximum 17 (34.0)

10 (20.0)

18 (36.0)

11 (22.0)

20 (40.0)

76 (30.4)

3. 26-50

a. Minimum 8 (16.0)

6 (12.0)

15 (30.0)

18 (36.0)

19 (38.0)

66 (26.4)

b. Maximum 14 (28.0)

10 (20.0)

14 (28.0)

20 (40.0)

13 (26.0)

71 (28.4)

4. 51-75

a. Minimum 7 (14.0)

12 (24.0)

7 (14.0)

11 (22.0)

8 (16.0)

45 (18.0)

b. Maximum 1 (2.0)

12 (24.0)

7 (14.0)

5 (10.0)

7 (14.0)

32 (12.8)

5. 76-100

a. Minimum 4 (8.0)

7 (14.0)

- 1 (2.0)

7 (14.0)

19 (7.6)

b. Maximum 9 (18.0)

5 (10.0)

4 (8.0)

9 (18.0)

6 (12.0)

33 (13.2)

6. 101+

a. Minimum 3 (6.0)

16 (32.0)

11 (22.0)

4 (8.0)

4 (8.0)

38 (15.2)

b. Maximum 3 (6.0)

12 (24.0)

5 (10.0)

1 (2.0)

1 (2.0)

22 (8.80)

7. Total

a. Minimum 50 (100.0)

50 (100.0)

50 (100.0)

50 (100.0)

50 (100.0)

250 (100.0)

b. Maximum 50 (100.0)

50 (100.0)

50 (100.0)

50 (100.0)

50 (100.0)

250 (100.0)

Source: - Field Survey 2010. Note: Figures in parenthesis relates to percentage to total.

It may be observed from Table 6.17 that negative growth of

urban residential price in Delhi during the period covered under

Page | 237

the study showed at about 6 per cent both in the minimum and

maximum residential land prices of Delhi. The negative growth

during the period covered under the study was due to economic

slowdown, higher interest rate of banks, less level of investment

of people in real estate sector, etc. then the later part of the period

covered under the study showed improvement in the economic

situation that changed the level of prices of urban residential land

in Delhi. This table also showed more than cent percentage

growth of urban residential land prices at 15.2 per cent of

localities in the minimum land price and 8.8 per cent localities in

maximum land price respectively. The pattern of growth in all

zones covered under the study showed a more or less same

character. The information regarding the zone-wise growth of

market price of land in Delhi during 2005-10 is depicted in Figure

6.9.

Figure 6.9: Zone-wise Growth Rate-wise Distribution of Localities in Delhi during 2005-10

Page | 238

Table 6.18: Growths Rate-wise & Zone-wise Distribution of Localities in Delhi during 2005-06 to 2009-10 &2005-10.

No Year/ Zones

Number of Localities Upto 0 (%) 1-25 (%) 26-50 (%) 51-75 (%) 76-100 (%) 101 + (%)

Min Max Min Max Min Max Min Max Min Max Min Max

1 2005-06

a. Central 5 5 38 38 5 5 - 2 - - 2 -

b. North 1 2 22 21 15 19 8 5 2 3 2 -

c. South 3 2 25 26 16 18 6 4 - - - -

d. East 4 2 34 30 9 16 3 1 - - - 1

e. West 2 4 32 33 13 10 2 2 1 - - -

f. Total 15 15 151 148 58 68 19 14 3 4 4 1

2 2006-07

a. Central 5 1 33 41 10 6 1 2 1 - - -

b. North 8 2 24 22 8 12 3 4 4 4 3 6

c. South 1 1 38 44 9 2 2 1 - 2 - -

d. East 4 2 26 31 16 11 2 3 2 2 - 1

e. West 1 - 36 31 9 15 4 4 - - - -

f. Total 19 6 157 169 52 46 12 14 7 8 3 7

3 2007-08

a. Central 32 33 10 7 7 8 1 1 - 1 - -

b. North 24 27 19 16 7 5 - 2 - - - -

c. South 18 19 27 23 4 5 1 2 - 1 - -

d. East 37 40 11 7 1 3 1 - - - - -

e. West 25 32 22 14 3 4 - - - - - -

f. Total 136 151 89 67 22 25 3 5 - 2 - -

4 2008-09 a. Central 43 48 7 2 - - - - - - - -

b. North 47 47 2 3 1 - - - - - - -

c. South 45 47 5 3 - - - - - - - -

d. East 42 49 8 1 - - - - - - - -

e. West 44 48 6 2 - - - - - - - -

f. Total 221 239 28 11 1 - - - - - - -

5 2009-10

a. Central - 1 48 47 2 2 - - - - - -

b. North 5 3 45 47 - - - - - - - -

c. South 7 1 43 49 - - - - - - - -

d. East - 1 50 47 - 2 - - - - - -

e. West - - 40 42 9 7 1 1 - - - -

f. Total 12 6 226 232 11 11 1 1 - - - -

6 2005-10

a. Central 7 6 21 17 8 14 7 1 4 9 3 3

b. North 2 1 7 10 6 10 12 12 7 5 16 12

c. South 2 2 15 18 15 14 7 7 - 4 11 5

d. East 2 4 14 11 18 20 11 5 1 9 4 1

e. West 2 3 10 20 19 13 8 7 7 6 4 1

f. Total 15 16 67 76 66 71 45 32 19 33 38 22

Page | 239

Growths Rate-wise & Zone-wise Distribution of Localities in

Delhi during 2005-06 to 2009-10 &2005-10 is presented in Table

5.18. It is evident from the table majority of localities land price of

urban residential land both in minimum and maximum during the

years 2007-08 and 2008-09 recorded negative growth as

compared to the previous year. Later part of the period showed a

recovery in the price of urban residential land both minimum and

maximum in Delhi.

In Delhi the highest growth of average land price during

2005-10 recorded at 176.36 per cent in Aruna vihar of the

northern zone. This locality has also recorded the highest growth

in minimum land price during the period covered under the study

at 188.90 per cent. The highest growth of maximum land price in

Delhi during 2005-10 recorded at 166.67 per cent in five localities

of different zones namely Delhi Gate in central zone, Aruna Vihar

in northern zone, Malviya Nagar in southern zone and Usmanpur

and Sonia Vihar of eastern zone respectively. The lowest

percentage of growth of average land price in Delhi during the

same period covered under the study was observed in Inderpuri

of the western zone of Delhi at -82.86 per cent. While the lowest

growth rate of minimum market price of urban residential land

recorded at Indra Nagar of northern zone of Delhi recorded at a

negative growth of 47.50 per cent. The lowest growth rate of

maximum market price urban residential land in Delhi during the

Page | 240

period covered under the study was observed in Inderpuri of

western zone at -90 per cent.

In central zone of Delhi the highest growth in the average,

minimum and maximum market price of urban residential land

during 2005-10 was observed at Delhi Gate at 159.26 per cent,

150 per cent and 166.67 per cent respectively. On the other hand

the lowest growth of average market price of urban residential

land in central zone recorded at a negative growth of 9.21 per

cent in Chitra Gupta Road. This locality also recorded the lowest

growth of minimum market price of urban residential land at -

13.69 per cent during the same period. While the lowest growth

of maximum urban residential land recorded at a negative growth

of 5.26 per cent in Mandir Marg locality during the same period.

The same in Chitra Gupta Road recorded at -5.0 per cent.

Already mentioned earlier, the highest growth of average,

minimum and maximum market price of urban residential land

during 2005-10 in northern zone of Delhi recorded in Aruna Vihar

at 176.36 per cent, 188.90 per cent and 166.67 per cent

respectively; and it was the highest recorded growth in all the

zones of Delhi. The lowest growth of average, minimum and

maximum market price of urban residential land in the same zone

was recorded at Indra Nagar at -46.86 per cent, 47.50 per cent

Page | 241

and -46.32 per cent during the same period covered under the

study.

The highest average, minimum and maximum price of

urban residential land in southern zone of Delhi during the period

covered under the study was observed in Malaviya Nagar. The

percentages are 152.94 per cent, 137.50 per cent and 166.67 per

cent respectively. The lowest growth of average and maximum

market price of urban residential land in southern zone of Delhi

during the same period was observed in Shivalik locality at -31.90

per cent and -86.52 per cent respectively. The percentage growth

of minimum market price of Shivalik locality during the same

period was recorded at 34.21 per cent. While the lowest negative

growth of minimum market price of urban residential land in

southern zone of Delhi was recorded at -1.92 per cent in Vasant

Vihar.

The highest percentage growth of average, minimum and

maximum market price of urban residential land in eastern zone

of Delhi during 2005-10 recorded in Usmanpur at 170 per cent,

175 per cent and 166.67 per cent respectively. The same growth

of maximum market price of urban residential land at 166.67 per

cent also recorded in Sonia Vihar during the same period covered

under the study. The lowest average, minimum and maximum

Page | 242

market price recorded in Johripur at -21.67 per cent, -12.0 per

cent and -28.57 per cent respectively.

In western zone the highest average, minimum and

maximum market price of urban residential land during the period

covered under the study recorded in Raja Garden locality at

132.61 per cent, 138.46 per cent and 125.0 per cent respectively.

On the contrary, the lowest average and maximum growth of

market price of urban residential land in western zone of Delhi

recorded in Inderpuri locality at -82.86 per cent and -90.0 per

cent. While the same locality showed a positive growth of

minimum market price of urban residential land recorded at 10 per

cent during the same period covered the study. The lowest growth

of minimum market price of urban residential land western zone of

Delhi during the same period covered under the study was

observed a negative growth in Mohan Garden at -8.33 per cent.

The information regarding the zone-wise market price of

urban residential land in Delhi including the average, minimum

and maximum during 2005-10 is presented in Annexure 1a, 1b,

1c, 1d and 1e respectively. Like-wise the information regarding

zone-wise growth rate of market price of urban residential land in

Delhi minimum, maximum and average during 2005-2010 is

presented in Annexure. 2a, 2b, 2c, 2d and 2e respectively.

Page | 243

Assuming the market value of urban residential land during

the year 2005 as 100, called index of land prices, the residential

land price index of both minimum and maximum of market price of

urban residential land in Delhi during 2005-2010 is presented in

Table 6.19.

Table 6.19: Residential Land Price Index of Delhi during

2006-10. (Base Year 2005= 100)

No Price Index 2006 2007 2008 2009 2010

1. Minimum 119.18 142.32 144.69 132.70 139.63

2. Maximum 117.61 142.88 143.58 129.27 136.88

3. Average 118.51 142.63 144.08 130.81 138.12

Source: - Field Survey 2010. It may be observed from Table 6.19 that minimum land

price indices were higher than the maximum land price indices

during the period covered under the study except in 2007. During

the year, 2007 the difference was negligibly less at 0.56. The

land price indices of Delhi shows that the growth rate in the initial

years covered under the study was comparatively higher, then

reduced and later period once again increased at a slow pace

than the initial period. Thus, the study clearly showed the fact

that the land price in Delhi had increased at a slower rate, is a

good indication for investors investing their money in real estate

business and property. The information regarding zone-wise

residential land price indices of Delhi during 2006-10 is presented

in Table 6.20.

Page | 244

Table 6.20: Zone-wise Residential Land Price Index of Delhi During 2006-10.

(Base Year 2005= 100)

No Price Index /

Zones

2006 2007 2008 2009 2010

1. Central

a. Minimum 113.58 132.98 134.01 122.67 131.41

b. Maximum 112.16 112.16 131.47 120.50 131.63

c. Average 112.81 132.17 133.65 121.51 131.53

2. North

a. Minimum 135.99 172.80 174.50 154.86 159.97

b. Maximum 128.06 179.07 172.65 151.49 156.79

c. Average 132.32 177.65 174.46 153.98 159.22

3. South

a. Minimum 119.51 139.73 146.42 136.80 140.36

b. Maximum 120.21 138.06 143.71 133.00 136.15

c. Average 119.65 138.82 144.95 134.74 138.08

4. East

a. Minimum 120.15 149.85 144.16 134.40 142.71

b. Maximum 123.76 151.90 143.93 129.42 137.55

c. Average 122.17 151.00 144.03 131.61 139.82

5. West

a. Minimum 122.08 147.83 151.76 137.13 145.99

b. Maximum 118.79 147.66 147.34 128.03 135.56

c. Average 120.21 147.73 149.24 131.94 140.05

6.

Total

a. Minimum 119.18 142.32 144.69 132.70 139.63

b. Maximum 117.61 142.88 143.58 129.27 136.88

c. Average 118.51 142.63 144.08 130.81 138.12

Source: - Field Survey 2010.

Page | 245

It may be observed from Table 6.20 that the land price

indices of Delhi north zone during the period covered under the

study were higher than the land price indices of all other zones.

The north zone of Delhi showed the fact that the land price

indices increased every year as compared with the previous year

except during the year 2008. The information regarding the land

price index of all localities covered under the study (zone-wise) is

presented in Annexure-3a, 3b, 3c, 3d and 3e respectively.

In order to understand the trends in land prices in Delhi an

attempt has been made and the technique of Least Square

Arithmetic Straight Line Trend17 has been used. This analysis is

useful for predicting the land prices in future if all the conditions

remain the same. For this, trend analysis has been made on

average, minimum and maximum market price of urban

residential land in Delhi during 2005-2010. Its details are

presented in Table 6.21, 6.22 and 6.23 (average, minimum and

maximum) respectively.

Y= a+bx

Where a= ∑Y∕ n, n means number of observations

b= ∑XY∕ ∑(X2)

x= means number of years for fitting trends.

a= 985412/6= 164235.33

b= 145716/ 17.50 = 8326.63

Page | 246

Table 6.21: Trends in Average Market Price of Residential Land in Delhi

No Years X X2 Y XY

1. 2005 -2.5 6.25 127290 -318225

2. 2006 -1.5 2.25 150850 -226275

3. 2007 -0.5 0.25 181550 -90775

4. 2008 0.5 0.25 183400 91700

5. 2009 1.5 2.25 166514 249771

6. 2010 2.5 6.25 175808 439520

Total 0.00 17.50 985412 145716

Therefore, average market price of residential land in Delhi

during the year 2008 was around Rs. 168398.65 per sq. mtr. If all

the conditions remain the same average market price of urban

residential land in Delhi is increasing at Rs. 8326.63 per sq. mtr.

per annum during the period covered under the study. That

means it is expected that the average market price of urban

residential land in Delhi will reach Rs. 226685.06 per sq. mtr

during 2015. The information regarding the minimum market price

of residential land in Delhi is presented in Table. 6.22.

Table 6.22: Trends in Average Minimum Market Price of Residential Land in Delhi

No Years X X2 Y XY

1. 2005 -2.5 6.25 114508 -286270

2. 2006 -1.5 2.25 136588 -204882

3. 2007 -0.5 0.25 163110 -81555

4. 2008 0.5 0.25 165828 82914

5. 2009 1.5 2.25 152080 228120

6. 2010 2.5 6.25 160028 400070

Total 0.00 17.50 892142 138397

Page | 247

Y= a+bx

a= 892142/6= 148690.33

b= 138397/17.50= 7908.4

Then average minimum price during the year 2008 was

around Rs. 152644.53 per sq. mtr. If all the conditions remain the

same the average minimum market price of urban residential land

in Delhi is increasing at Rs. 7908.4 per sq. mtr. per annum during

the period covered under the study. That means it is expected

that the average minimum market price of urban residential land

in Delhi will reach Rs. 208003.33 per sq. mtr. during 2015. The

information regarding the maximum market price of residential

land in Delhi is presented in Table. 6.23.

Table 6.23: Trends in Average Maximum Market Price of

Residential Land in Delhi. No Years X X

2 Y XY

1. 2005 -2.5 6.25 139972 -349930

2. 2006 -1.5 2.25 165112 -247668

3. 2007 -0.5 0.25 199912 -99956

4. 2008 0.5 0.25 200972 100846

5. 2009 1.5 2.25 180948 271422

6. 2010 2.5 6.25 191588 478970

Total 0.00 17.50 1078504 153684

Y= a+bx

a= 1078504/6= 179750.67

b= 153864/17.50= 8781.94

Page | 248

Then average maximum price during 2008 was around Rs.

184141.64 per sq. mtr. If all the conditions remain the same the

average maximum market price of urban residential land in Delhi

is increasing at Rs. 8781.94 per sq. mtr. per annum during the

period covered under the study. That means it is expected that

the average maximum price of urban residential land in Delhi will

reach Rs. 245615.22 per sq. mtr. during 2015.

Comparison between Circle Rates & Market Price of Residential Land

One of the main sources of revenue of the state

government is through fixing the land price for the purpose of

stamp duties. In order to discourage the tax evasion it is

imperative that the price of the land for levy of stamp duty

purposes is arrived at considering all the factors mainly location

advantages, infrastructure accessibility by the concerned officials

like village, officials of the sub Registrar offices, patwaris , etc. A

general thinking is that market price of land was always higher

than that of the actual recorded or officially recorded price of land.

Officials of the concerned authorities especially land stamps and

duty officials in Land Revenue Department recorded the

prevailing market value of land take in to account all the possible

factors especially the accessibility of infrastructure facilities,

location etc. But the intensity of development of urban areas in

Delhi the circle rates fixed by the Government has always been a

Page | 249

lesser one. Every time Government has enhanced the circle rates

at high rate. But actual prevailing market is always higher than the

circle rates.

In Delhi, officials of the concerned department classified

the circles into eight categories take in to account all possibilities

of advantage factors, physical infrastructure facilities, etc and they

have not classified maximum and minimum prices. The classified

circles are A,B,C,D,E,F,G and H respectively18. Commonly they

revised the existing circle rates once in a year. The information

regarding the circle rates in Delhi during 2011 and proposed

revised rate during November 2011 is presented in Table. 6.24.

Table 6.24: Existing Circle Rates and Proposed Circle Rates (November 2011) in Delhi.

(Rs. per Sq. ft)

No Circles Existing Proposed in November 2011

1. A 86000 215000

2. B 68200 136400

3. C 54600 109200

4. D 43600 87200

5. E 36800 47840

6. F 32220 38640

7. G 27400 31510

8. H 13800 15870

Source: Land Revenue Department, Government of NCT of Delhi.

Page | 250

In order to find out the difference between the market price

as well as government recorded circle rates, the Research

Scholar have collected the information regarding the government

recorded circle rates of selected localities in Delhi from the Land

Revenue Department, Government of National Capital Territory of

Delhi. In this connection an attempt has been made to compare

the market price of land and the government recorded circle rates

of 33 localities of Delhi covering all circles. The information

regarding the difference between market price and government

recorded circle rates during the year 2011 is presented in Table

6.25.

Table 6.25: Comparison between the Average Market Price

& Government Circle Rates of Residential Land. (Rs. Sq. Mtr)

No Market Price Government Circle Rates Difference

1. 136924 49936 86988

Sources: - 1. Field Survey 2010. 2. Land Revenue Department, GNCTD.

It may be observed from Table 6.25 that the government

recorded price of land was lesser than the market price of land in

selected localities of Delhi. The government recorded circle rate

of Delhi was lesser than the actual prevailing market price of

urban residential land. The main reasons for higher market price

of urban residential land in Delhi due to the influence of real

estate development of private players, speculation among the

property developers, speculative nature of needy demand people

Page | 251

that the rise in price of land in the near future and high fast

development as compared with other metros in India. The

present market price of urban residential land in Delhi was higher

than the circle rates by 1.74 times. So the government

intervention is very essential to enhance the circle rates, other-

wise it may leads to a loss in the public exchequer.

The highest difference between the market price of urban

residential land and circle rates of Delhi during the current year

was recorded in Chitaranjan Park (CR Park) at 505.87 per cent.

On the contrary the lowest difference between the market price of

urban residential land and circle rate during the same period was

recorded in Pandv Nagar at 131.91 per cent. The information

regarding the market price and government circle rates of land in

selected localities during the current year is presented in

Annexure 4.

Commercial Land Prices

In order to examine the realistic picture of urban land in

any area, the price of commercial land plays an important role for

assessing the land price in the city. Generally commercial areas

are located in the central business area of the city or core area,

which in turn leads to an exorbitant price of the commercial land.

These commercial areas have all types of accessibilities like

infrastructure facilities and others. In order to examine the

Page | 252

commercial land prices in Delhi, the Research Scholar collected

the information regarding the commercial land prices in 50

selected localities. The information regarding the commercial land

prices in Delhi during 2005-2010 is presented in Table 6.26.

Table 6.26: Market Price of Commercial Land in Delhi During 2005-2010.

(Rs. per Sq Ft)

No Years Minimum Maximum Average

1. 2005 7550 8962 8266

2. 2006 8242 9738 8990

3. 2007 9630 11328 10479

4. 2008 11004 12904 11954

5. 2009 12500 14446 13473

6. 2010 13756 16088 14922

Source: - Field Survey 2010.

It may be observed from Table 6.26 that the commercial

land price in Delhi increased from Rs. 8266 per sq. ft in 2005 to

Rs. 14922 per sq. ft in 2010. During the same period the minimum

market price of commercial land in Delhi increased from Rs. 7550

per sq. ft to Rs.13756 per sq. ft. The difference between the

maximum and minimum market price of commercial land in Delhi

was also showed an increasing trend from Rs. 1412 in 2005 to

Rs. 2332 in 2010; the highest during 2010 and lowest in the initial

period of 2005. The average annual percentage growth of market

price of commercial land in Delhi was arrived at 13.42 per cent

Page | 253

while the annual percentage growths of minimum and maximum

commercial land price were derived at 13.70 and 13.19 per cent

respectively. The commercial land price in Delhi during 2000-05 is

depicted in Figure 6.10.

Figure 6.10: Commercial Land Prices in Delhi 2005-10.

The information regarding the growth rate of commercial

land prices in Delhi during 2005-2010is presented in Table 6.27.

Table 6.27: Growth Rates of Market Price of Commercial Land in Delhi.

No Years Growth Rates (Per Cent)

Minimum Maximum Average

1. 2005-06 9.17 8.42 8.76

2. 2006-07 16.84 16.33 16.56

3. 2007-08 14.27 13.91 14.08

4. 2008-09 13.60 11.95 12.71

5. 2009-10 10.05 11.37 10.75

6. 2005-10 82.20 79.11 80.52

Source: - Field Survey 2010.

2005 2006 2007 2008 2009 2010

Page | 254

It may be inferred from Table 6.27 that the lowest growth

rate of market price of commercial land in Delhi had been

observed during 2005-06 at 8.67 per cent and highest during

2007-08 at 16.56 per cent. The highest growth rate of market

price of commercial land in Delhi during initial during 2006-07

covered under the study was due to speculation but at later stage

it did not increase as such and reached slightly downward

direction. In general, the growth rate of maximum market price of

commercial land was slightly less than the minimum market price

of commercial land in Delhi 2005-2010. The information regarding

the growth rates of commercial land prices in Delhi is depicted in

Figure 6.11.

Figure 6.11: Growth Rates of Commercial Land Prices in

Delhi 2005-10. (per cent)

Page | 255

The highest average, minimum and maximum market price

of commercial land in Delhi during 2010 was observed in Joshi

Road, karol Bagh at Rs. 40250 per sq. ft, Rs. 38000 per sq. ft and

Rs. 42500 per sq. ft respectively. On the other hand the lowest

average, minimum and maximum market price of commercial land

in Delhi during 2010 was observed Acharaya Niketan, Mayur

Vihar at Rs.1150 per sq. ft, Rs. 1100 per sq. ft and Rs. 1200 per

sq. ft respectively. The information regarding the market price

commercial land in Delhi including both minimum and maximum

prices during 2005-10 is presented in Annexure 5.

The highest growth rate of average, minimum and

maximum market price of commercial land prices in Delhi during

2005-10 was observed in Adarsh Nagar Shopping Complex at

47.73 per cent per annum, 41.67 per cent per annum and 52.78

per cent per annum respectively. On the other hand, lowest

growth was recorded in Acharaya Niketan, Mayur Vihar in

average, minimum and maximum commercial land prices during

2005-10. Only one locality in study showed this negative growth

of commercial land prices. The lowest recorded growth of

average, minimum and maximum commercial land prices at 77

per cent, 75.56 per cent and 78.18 per cent during the period

covered under the study. The main reason for lowest and

negative growth in the said locality means less chance of

commercial activities, majority of the commercial activities in the

Page | 256

initial period covered under the study already shifted to other

nearby localities where the chance for commercial activities have

a good future. The information regarding the growth rate of

market price of commercial land prices in Delhi both minimum and

maximum during 2005-2010 is presented in Annexure 6.

Assuming the market value of commercial land during the

year 2005 as 100, called index of land prices, the commercial

land price index of both minimum and maximum of market price of

commercial land in Delhi during 2005-2010 is presented in Table

6.28 and the details regarding the same is presented in Annexure

7.

Table 6.28: Commercial Land Price Index of Delhi during

2006-10. (Base Year 2005= 100)

No Price Index 2006 2007 2008 2009 2010

1. Minimum 109.17 127.55 145.75 165.56 182.20

2. Maximum 108.42 126.12 143.67 160.83 179.11

3. Average 108.76 126.77 144.62 162.99 180.52

Source: - Field Survey 2010.

In order to understand the trends in commercial land prices

in Delhi an attempt has been made by using the technique of

Least Square Arithmetic Straight Line Trend. This analysis is

useful for predicting the commercial land prices for future if all

the conditions remain the same. For this, trend analysis has been

Page | 257

made on average market price of commercial land in Delhi during

2005-2010. The detail is presented in Table 6.29.

Table 6.29: Trends in Average Market Price of Commercial

Land in Delhi No Years X X

2 Y XY

1. 2005 -2.5 6.25 8266 -20665.00

2. 2006 -1.5 2.25 8990 -13485.00

3. 2007 -0.5 0.25 10479 -5239.50

4. 2008 0.5 0.25 11954 5977.00

5. 2009 1.5 2.25 13473 20209.50

6. 2010 2.5 6.25 14922 37305.00

Total 0.00 17.50 68084 24102

Y= a+bx

Where a= ∑Y∕ n, n means number of observations

b= ∑XY∕ ∑(X2)

x= means number of years for fitting trends.

a= 68084/6 = 11347.33

b= 24102/ 17.50 = 1377.26

Therefore, average market price of commercial land in

Delhi during 2008 was around Rs. 12035.96 per sq. ft. If all the

conditions remain the same, average market price of urban

commercial land in Delhi is increasing at Rs. 1377.26 per sq. ft

per annum during the period covered under the study. That

means it is expected that the average market price of urban

Page | 258

commercial land in Delhi will reach Rs. 21676.78 per sq. ft during

2015.

Industrial Land Prices

For assessing the real land price scenario of a city the

information regarding the land price of industrial area plays a vital

role. Development of cities is linked with the development of

industrial activities, physical conditions, work, employment

opportunities, etc,. Now majority of the heavy and large scale

industrial units are set up in the peripheral areas of the city, the

government also tries to resettle the age old traditional polluting

industrial units from the urban area primarily due to the health

related issues and with the development of new satellite towns

and various measures, government tries to reduce the size of

population especially in the case of mega cities. Majority of our

cities have faced multiple and serious problems like lack of all

kinds of basic facilities, lack of funds for providing the required

level of infrastructure facilities, etc. In Delhi, the Government of

National Capital Territory of Delhi tries to convince the dynamic

entrepreneurs, companies, internationally renowned institutions to

invest in selected industrial pockets where the required level of

infrastructure is available at the least cost19. In this connection the

Research Scholar collected the information regarding industrial

land prices in 40 selected localities of Delhi during the field visit.

Page | 259

The information regarding industrial prices in selected localities of

Delhi during 2005-10 is presented in Table 6.30.

Table 6.30: Market Price of Industrial Land in Delhi During

2005-2010. (Rs. per Sq Mtr)

No Years Minimum Maximum Average

1. 2005 4630.00 5660.00 5145.00

2. 2006 5460.00 6587.50 6023.75

3. 2007 6167.50 7607.50 6887.50

4. 2008 6350.00 7815.00 7082.50

5. 2009 6655.00 8195.00 7425.00

6. 2010 7512.50 9312.50 8412.50

Source: - Field Survey 2010.

It may be observed from Table 6.30 that the market price

of industrial land in Delhi increased from Rs.5145 per sq. mtr in

2005 to Rs. 8412.50 per sq. mtr in 2010. The difference between

the minimum and maximum market price of industrial land in Delhi

increased from 1030 in 2005 to 1800 in 2010. This indicates the

fact that the market price of industrial land in Delhi increased at a

slowly positive level. The information regarding the growth rate of

industrial land market prices in Delhi during 2005-2010 is

presented in Table 6.31.

It may be inferred from Table 6.31 that the annual growth

rate of market price of industrial land in Delhi during the period

covered under the study was observed at 10.59 per cent. The

Page | 260

annual growth rate of market price of maximum industrial land

was higher than minimum market price of industrial land in Delhi

during the same period which was observed at 0.38 per cent. The

growth rate market price of industrial land in Delhi during the initial

period covered under study showed highest at 17.08 per cent.

This is same in the case of minimum and maximum market prices

of industrial land in Delhi. During the middle period of the study,

the growth of market price of industrial land in Delhi showed a

reducing trend and recorded lowest during 2007-08 at 2.83 per

cent. This is due to the economic slowdown and the impact of

globalization, a good number of multinational companies showed

a retarded trend in investing especially in the set up of industrial

units. But in 2008-09 the recovery process starts and later period

showed the trend of positive growth.

Table 6.31: Growth Rates of Market Price of Industrial Land

in Delhi No Years Growth Rates (Per Cent)

Minimum Maximum Average

1. 2005-06 17.93 16.39 17.08

2. 2006-07 12.96 15.48 14.34

3. 2007-08 2.96 2.73 2.83

4. 2008-09 4.80 4.86 4.84

5. 2009-10 12.89 13.64 13.30

6. 2005-10 62.26 64.53 63.51

Source: - Field Survey 2010.

Page | 261

The information regarding the growth rate of industrial land

prices in Delhi during 2000-2005 is depicted in Figure6.12.

Figure 6.12: Growth Rates of Industrial Land Prices in Delhi 2005-10

(Per cent)

The highest minimum maximum and average market price

of industrial land in Delhi during 2010 was observed in Nariana

Industrial Area at Rs. 15000 per sq.mtr Rs.20000 per sq. mtr and

Rs. 17500 per sq. mtr respectively. The lowest minimum,

maximum and average market price of industrial land in Delhi

during 2010 was recorded in Karwal Nagar at Rs. 1500 per sq.

mtr, Rs. 2500 per sq. mtr and Rs. 2000 per sq. mtr respectively.

The information regarding the market price of industrial land in

and around Delhi both minimum and maximum during 2000-2005

is presented in Annexure 8.

Page | 262

The highest growth rate of market price of industrial land in

Delhi during 2005-10 was observed in Dr. Lohia Industrial Area at

243.75 per cent. The minimum and maximum market price of

industrial land in Delhi during the same period was also observed

in the same industrial locality at 316.67 per cent and 200 per cent

respectively. On the other hand the lowest growth of market price

industrial land in Delhi during the same period was observed in

Khyala Industrial Area at 33.33 per cent. This locality also showed

the lowest minimum and maximum market price of industrial land

at the same per cent. i.e. 33 per cent The information regarding

the percentage growth of market price of industrial land in Delhi

during 2005-2010 both minimum and maximum is presented in

Annexure. 9.

Assuming the market value of industrial land during the

year 2005 as 100, called index of land prices, the industrial land

price index of both minimum and maximum of market price of

industrial land in Delhi during 2005-2010 is presented in Table

6.32 and the details regarding the same is presented in Annexure

10.

Page | 263

Table 6.32: Industrial Land Price Index of Delhi during 2006-10.

(Base Year 2005= 100)

No Price Index 2006 2007 2008 2009 2010

1. Minimum 117.93 133.21 137.15 143.74 162.26

2. Maximum 116.39 134.41 138.07 144.79 164.53

3. Average 117.08 133.87 137.66 144.31 163.51

Source: - Field Survey 2010.

In order to understand the trends in industrial land prices in

Delhi an attempt has been made by using the technique of Least

Square Arithmetic Straight Line Trend. This analysis is useful for

predicting the industrial land prices for future if all the conditions

remain the same. For this, trend analysis has been made on

average market price of industrial land in Delhi during 2005-2010.

The detail is presented in Table 6.33.

Table 6.33: Trends in Average Market Price of Industrial

Land in Delhi No Years X X

2 Y XY

1. 2005 -2.5 6.25 5145.00 -12862.50

2. 2006 -1.5 2.25 6023.75 -9035.63

3. 2007 -0.5 0.25 6887.50 -3443.75

4. 2008 0.5 0.25 7082.50 3541.21

5. 2009 1.5 2.25 7425.00 11137.50

6. 2010 2.5 6.25 8412.50 21031.25

Total 0.00 17.50 40976.50 10368.08

Y= a+bx

Where a= ∑Y∕ n, n means number of observations

Page | 264

b= ∑XY∕ ∑(X2)

x= means number of years for fitting trends.

a= 40976.50/6 = 6829.42

b= 10368.08/ 17.50 = 592.46

Thus, average market price of industrial land in Delhi

during 2008 was around Rs. 7125.65 per sq. mtr. If all the

conditions remain the same, average market price of urban

industrial land in Delhi is increasing at Rs. 592.46 per sq mtr per

annum during the period covered under the study. That means it

is expected that the average market price of urban industrial land

in Delhi will reach at Rs. 11272.87 per sq. mtr during 2015.

Rental Scenario in Delhi Rental prices in cities are one of the main factors for

influencing the urban land prices in urban areas of the world.

There is a direct relationship between the rental prices and

residential land prices. Due to the development of industries,

mainly small and medium industries, urbanization, fast

development of tertiary sector especially in information technology

and information technology enabled services, various policies

introduced by the government from time to time like special

economic zones, tourism zones, education zones, industrial

growth centers, industrial parks, etc, income of the people in Delhi

increased which had multiplied effects and created a profit

hunting rental business among the landlords. Thus, landlords

having land at core area in the cities constructed houses and

Page | 265

rented them at maximum rate and it became a steadily growing

business. The main reason behind the demand for rental housing

was the large scale of migration of educated and technically

qualified persons from other cities or rural areas, who are not

having enough money to afford the exorbitant cost of housing and

were compelled to stay in rental houses within the city20. A

general tendency is that the rental rate is increasing annually. In

order to know the rental rates in Delhi, information was collected

from 18 selected localities. The commercial rent rate is also

increasing in most of the areas. Due to the large demand of

commercial spaces especially due to the opening up of new

outlets of multinational companies in Delhi, the rent rate of

commercial areas increased at a speedy rate. For assessing the

rent rates in Delhi, the Research Scholar collected the information

regarding residential rent rates of sixty selected localities and fifty

localities commercial rent rates during 2007-2011. The

information regarding the rent rates of commercial and residential

purposes in Delhi both minimum and maximum during 2007-2011

is presented in Table 6.34.

It may be observed from Table 6.34 that the residential rent

rates in Delhi increased from Rs. 17.72 per sq. ft in 2007 to Rs.

28.95 per sq. ft in 2011 recorded an annual growth rate at 12.68

per cent. The percentage growth of minimum residential rent rates

in Delhi was higher than the maximum residential rent rates

during the period covered under the study and it increased at 2.67

Page | 266

per cent per annum. The same period the commercial rent rates

in Delhi increased from Rs. 20.48 per sq. ft in 2007 to Rs. 35.65

per sq. ft in 2011. Like-wise the residential rent rates, the

percentage growth of minimum commercial rent rate was

outweighs the maximum commercial rent rates during the same

period covered under the study and the difference was worked

out at 3.58 per cent per annum.

Table 6.34: Rent Rates in Delhi During 2007-2011.

(Rs. per Sq ft) No Years/ Purpose Minimum Maximum Average

1. 2007

a. Residential 14.12 21.32 17.72

b. Commercial 17.24 23.72 20.48

2. 2008

a. Residential 17.38 25.07 21.23

b. Commercial 22.36 28.68 25.52

3. 2009

a. Residential 19.10 27.09 23.50

b. Commercial 24.94 31.58 28.26

4. 2010

a. Residential 21.32 30.63 25.98

b. Commercial 28.74 35.80 32.27

5. 2011

a. Residential 24.20 33.70 28.95

b. Commercial 31.80 39.50 35.65

Source: - Field Survey 2010.

Page | 267

The information regarding the growth rates rent rates of

Delhi during 2007-11 is presented in Table 6.35.

Table 6.35: Growth Rates of Rent Rates in Delhi: 2007-2011. (Per cent)

No Years/ Purpose Minimum Maximum Average

1. 2007-08

a. Residential 23.14 17.59 19.80

b. Commercial 29.70 20.91 24.61

2. 2008-09

a. Residential 9.88 11.30 10.72

b. Commercial 10.34 10.11 10.21

3. 2009-10

a. Residential 11.61 9.80 10.53

b. Commercial 15.24 13.36 14.19

4. 2010-11

a. Residential 11.91 9.10 11.45

b. Commercial 10.65 10.34 10.47

5. 2007-2011

a. Residential 71.43 58.09 63.41

b. Commercial 84.45 66.53 74.07

Source: - Field Survey 2010.

It may be observed from Table 6.35 that that the growth

rates rent both commercial and residential during 2008-09 was

recorded lowest during the period covered under the study. This

is due to economic slowdown of the economy. After that some

recovery starts the growth rates of residential was showed higher

than the commercial rent rates in Delhi during the period covered

under the study.

During the year 2011 the highest residential rent was

observed at Aurangazeb Road at Rs. 88.50 per sq. ft. This locality

is also showed the highest maximum and minimum residential

Page | 268

rent rates during the same period covered under the study at Rs.

81 per sq. ft and Rs. 96 per sq. ft respectively. The growth rates

of residential rent during the period covered under the study

showed highest in Barakhamba at 155.17 per cent. This locality

also recorded the maximum and minimum residential rent rate

growths at 140 per cent and 188.89 per cent respectively. On the

other hand the lowest growth recorded in Janpath at 35.50 per

cent; minimum at 47.62 per cent and maximum at 27.69 per cent

respectively during the period covered under the study. The

information regarding the residential rent rates of sixty selected

localities in Delhi during 2007-2011 both minimum and maximum

is presented in Annexure 11. The growth rates of residential rents

in these selected localities during the abovementioned period

covering minimum and maximum presented in Annexure 12.

In 2011 the highest market commercial rent in Delhi was

recorded in Nehruplace at Rs. 55 per Sq. ft. This locality also

showed the highest maximum and minimum commercial rent in

Delhi during the same period covered under the study at Rs. 60

per sq. ft and Rs. 50 per sq. ft respectively. While the lowest

commercial rent at Rs. 17.50 per sq. ft is recorded in four

localities in Delhi and they are Vikas Marg, Karkodama, Acharya

Niketan-Mayrur Vihar and Nirman Vihar respectively. These

localities also recorded the lowest minimum and maximum

commercial rent in Delhi during the period covered under study at

Page | 269

Rs. 15 per sq. ft and Rs. 20 per sq. ft respectively. During 2007-

2011 the highest growth rate of commercial rent in Delhi recorded

at 128.57 per cent in New Rajender Nagar. This locality also

recorded the highest minimum and maximum growth rate of

commercial rent in Delhi during the period covered under the

study at 133.33 per cent and 125 per cent respectively. On the

contrary the lowest growth rate of commercial rent in Delhi during

2007-2011 recorded in Joshy Road- Karol Bagh at 28.57 per cent.

This locality also recorded the lowest minimum and maximum

growth rate of commercial rent in Delhi during the same period at

33.33 per cent and 25 per cent respectively. The information

regarding commercial rent rates of selected localities in Delhi

during 2007- 2011 including the minimum and maximum is

presented in Annexure 13. The growth rates of commercial rent in

Delhi during 2007 to 2011 covering both the minimum and

maximum commercial rent is presented in Annexure 14.

Market Price of Apartments

Population in India is increasing at annual rate of 1.76 per

cent as per 2011 census. The increasing population not only

needs jobs but also needs housing and other basic amenities.

With the inception of economic liberalization during 1990’s most

of the industries especially medium and small were set up in most

of the urban areas in the country. Hence large chunk of educated

and technically qualified population is migrating to these cities in

Page | 270

search of employment thereby creating a demand for housing in

cities. This massive urban population will put great pressure on

agricultural land near the developing medium sized cities. Medium

and hi-rise buildings are coming up to cope up with rapid

urbanization. Land is scarce and need is to build hi-rise buildings

in greater number in these cities. Delhi is also facing the same

level of situation.

The advantage of constructing apartment system is that it

will be easier to provide network of services, transport, community

services, open space and other amenities21. Development of

construction technology has made vertical expansion in housing

more economically viable as a solution for the large chunk of

middle income households. The study examines the market price

of apartments in 50 localities spread over the city. The information

regarding the market price of apartments in Delhi during 2007-11

is presented in Table 6.36.

Table 6.36: Market Price of Apartments in Delhi 2007-11.

(Rs. per Sq ft)

No Years Minimum Maximum Average

1. 2007 4460 5670 5065

2. 2008 5424 6576 6000

3. 2009 6194 7386 6790

4. 2010 6440 7780 7110

5. 2011 7180 8810 7995

Source: - Field Survey 2010.

Page | 271

It may be observed from Table 5.36 that the market price

of apartment in Delhi increased from Rs. 5065 per sq. ft in 2007 to

Rs. 7995 per sq. ft in 2011. During the same period the minimum

market price of flats in Delhi increased from Rs. 4460 per sq. ft in

2007 to Rs. 7180 per sq. ft in 2011. While maximum market price

of apartments during the same period increased from Rs. 5670

per sq. ft tot Rs. 8810 per sq. ft. During the year 2011 the highest

market price of apartments in Delhi was observed in Lajpat Nagar

at Rs. 17500 per sq. ft. The higher market rate of apartment in

this area due to various factors such as accessibility of various

infrastructure facilities, locational advantages, others factors. This

area also recorded the highest minimum and maximum market

price of apartments during the same period at Rs. 15000 per sq. ft

and Rs. 20000 per sq. ft. On the other hand, the lowest average,

minimum and maximum market price of apartment in Delhi during

the same period was observed in three localities namely Kalkaji,

Omvihar and Madhuvihar at Rs. 3250 per sq. ft, Rs. 3000 per sq.ft

and Rs. 3500 per sq. ft respectively. The information regarding

the market price of apartments in selected localities in Delhi

during 2007-2011 is presented in Annexure 15. The information

regarding the growth rate of market price of apartments in Delhi

during 2007-2011 is presented in Table 6.37.

Page | 272

Table 6.37: Growth Rates of Market Price of Apartments in Delhi 2007-11.

(Per cent)

No Years Minimum Maximum Average

1. 2007-08 21.61 15.98 18.46

2. 2008-09 14.20 12.32 13.17

3. 2009-10 3.97 5.33 4.71

4. 2010-11 11.49 13.24 12.45

5. 2007-11 60.99 55.38 57.85

Source: - Field Survey 2010.

The annual growth rate of market price of apartment in

Delhi increased at 11.57 per cent during this period. The annual

growth rate of minimum apartment price was little bit higher than

the maximum market price of apartment by 1.12 per cent. The

lowest growth rate of market price of apartments during 2007-11

is recorded in 2009-10 at 4.71 per cent. The reason for lower

growth rate of market price of apartment during the period is due

to economic slowdown, less investment among the property

developers as well as needy households. After that the recovery

starts and reached a growth rate of market price apartment at

12.45 per cent in 2010-11. The highest growth rate of market

price of apartment in Delhi during 2007-2011was recorded in

Kalkaji at 160 per cent; 200 per cent for maximum and 133.33 per

cent for maximum. During the same period the lowest growth of

market price of apartments among the selected localities in Delhi

was observed in Janakpuri at 28.57 per cent. This area is already

Page | 273

developed and further scope for the development especially in the

construction of flats is scarce. The information regarding the

growth rate of apartments among the selected localities in Delhi

during 2007 – 2011 is presented in Annexure 16.

Page | 274

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