Floor property prices to shoot up post Haryana Govt’s decision revoke construction of stilt plus four floors

March 20, 2023: The Haryana Government’s decision to rescind all the fresh and pending stilt plus four-storey building plan approvals temporarily will lead to increased property prices across the state, a concern raised by real estate experts. The Department of town and country planning of Haryana announced a few days ago that the government would not entertain the applications for the construction of stilt plus four-storey buildings for some time, as the allowance has been kept in abeyance by the authorities. The building plans approved before the order will remain legitimate and valid.

The directive will be applicable in private licensed colonies as well as sectors developed by Haryana Shahari Vikas Pradhikaran (HSVP), Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and urban local bodies. However, the government has made it clear that applications for ground plus two floors and stilt plus three floors will be invited, maintaining the status quo.

Realty players say, the floor property prices will see an inevitable hike after revocation and can dampen the property demand of floors for a brief time period. The authority vigil towards increasing environment concerns and infrastructure seems to be the rationale behind the decision, they add.

The repealing order serves as good news for residents of Haryana cities who have been demanding a ban on building the fourth floor. They flagged concerns that it poses a great deal of impediment to the existing infrastructural apparatus and civic facilities. The land and residential plot prices have seen a huge uptick after the 2019 amendment in which the state government approbated the construction of stilt plus four floors. The demand for plots will also witness a downturn after Haryana Government’s announcement, as per the views of real estate bodies. The rationale behind the government’s decision is to check the land costs and property prices of floors, which have soared high by steep margins, in the past few years.

However, some real estate experts have also professed that the flat prices of a builder floor will surge by greater margins in the coming future in view of the current policy stand of the Haryana Government. The homebuyers will face higher probabilities of purchasing expensive flats in builder floors.

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As per the current understanding, the prices of floors will see a considerable jump in Gurugram real estate markets. But it will not create a derailing effect on the floor consumer demand. There is a spring in the intellectual consciousness of the homebuyers’ community. They want development and construction without compromising the environmental cover. The property price increase is not expected to very high and last for a long time, as developers will take calls as per the prevailing situation and keeping the buyers’ interests in mind as well.

Sanjeev Arora, Director, 360 Realtors, stated, “The decision by Haryana government is a welcome step, as it will stop the apartmentalization of residential colonies and housing societies. This will also lower pressure on existing water, electricity, and other resources. Meanwhile, it is natural that land prices will jump.”

Rajesh K Saraf, Managing Director, Axiom Landbase, says, “The next few months are going to be critical when we will see whether the government’s new decision will pass the acid test and be fruitful for the overall infrastructural improvement across the cities. The demand for floors might see a a drag for a couple of months. However, floors are the most popular residential housing formats in Gurugram, especially, so it will not see downfall and continue to attract scalable investments in present and future as well.”