The proposal to redevelop the LBZ has set real estate sector hopeful. If the proposal gets a go ahead, the prices are expected to shoot up.
Lutyens Bungalow Zone (or LBZ) is one of the most coveted zones of Delhi. The area mostly belongs to the government of India and the number of private properties is very less. Recently, a bungalow in the area was sold to a private company for Rs. 300 crore.
The proposal will exclude the areas such as Golf Links, Bengali Market, Sunder Nagar and Jor Bagh from the LBZ. The exclusion of these posh locations from the LBZ will make it possible to construct taller buildings with more space. This will pave the way for more housing.
“These areas are soon going to see a lot of activity. Now, high-end and expensive apartments will come up,” said Navin Raheja, chairman, National Real Estate Development Council and founder, Raheja Developers.
“Not only will the proposed rules allow new high rises with better facilities to come up, it will also provide value for money to buyers. As of now, despite high prices, the space is restricted for construction,” said Ashwinder Raj Singh, CEO, residential services, Jones Lang LaSalle India.
“The price of each bungalow in this area comes around Rs. 200 crore,” Mr. Raheja added.
Mr. Singh said at present, prices in the extended LBZ zone are approximately Rs. 14-17 lakh per square yard, but the restrictions result in a very limited built-up area.
“With the proposed changes in rules, the same amount of money will buy not only more built-up area but also more facilities. Also, property owners in these areas will be able to build/renovate their homes as per their needs, without obtaining approval from government agencies,” he said.
“Land will be used more efficiently, and more developers will get into the fray,” Mr. Singh said.