LJ University Real Estate Practices PDF

L J UNIVERSITY L J Institute of Engineering & Technology, Ahmedabad Subject : Real Estate Practices Subject Code : 017095701 Unit 3 Urban Land -Town Planning and Development Control Regulations...

L J UNIVERSITY L J Institute of Engineering & Technology, Ahmedabad Subject : Real Estate Practices Subject Code : 017095701 Unit 3 Urban Land -Town Planning and Development Control Regulations Faculty In-charge Mr. Ishan Trivedi Department of Civil Engineering LJIET Email-id: [email protected]  L J UNIVERSITY Need for Serviced land- Gujarat 2 L J UNIVERSITY Administrative Boundary 3  L J UNIVERSITY AUDA Regional Context AMC Area 490 Sq. Km AUDA Area 1866 Sq. Km 04 District 09 Taluka 5 Growth Centers. 159 Villages 02 Muni. Corporation (AMC + GMC) 4  L J UNIVERSITY Models of Urban Planning – Initiative in Gujarat 5  L J UNIVERSITY Zoning The method of accomplishing the best arrangement of the different components of a city or, in other words, land-uses is known as Zoning. It is a part and parcel of a development plan but does not mean any rigid arrangement. The essence of good zoning is utilization of the available land to the right use and the correct location of each zone so that there will be no contest and no nuisance. For example, the residential zone and the industrial zone may be properly segregated so that the dwellers are kept free from any nuisance from smoke, dirt, noise etc. The important aspects of planning Regulations are :- 1. Character or use :-Regulated by means Reservations & Incentives 2. Density :- Defined in terms of PPH ( Persons per Hectare) at Zone level & transferred to FSI / FAR at Plot/Zone level. 3. Height :-Regulated according to the width of the street/ or ZONE 4. Volume:- Form of the Building or Block level 5. Facades of Building:- An element of beauty and aesthetics have an artistic composition. 6 L J UNIVERSITY Red zone schools, hospitals, places of worship or similar social infrastructure. No High rise permitted Green Zone Agriculture Yellow zone Residential + Mixed use Blue zone Commercial and Retail + hospitality | Business center Grey zone heavy industries and manufacturing facilities. Purple zone Or violet zone - factory establishments | light Industries. A darker shade is at times reserved for technology-oriented industries 7 L J UNIVERSITY 8 L J UNIVERSITY 9 L J UNIVERSITY 10 L J UNIVERSITY 2nd Revised Development Plan of AUDA 2021 11  L J UNIVERSITY What is FSI? FSI stands for “Floor Space Index”, which is the ratio of the Total Built-up area of the entire building/s to total Land Area. Built-up Area 2500 Sq. Mts. Land Area: 1000 Sq. Mts. FSI = 2.5 12  L J UNIVERSITY Floor Area Ratio (FAR/ FSI) is the ratio of built area (a building's total size) to the lot area (the property upon which the building is built). It is a measure used by planners, regulators, and developers to regulate the intensity of a development. 13  L J UNIVERSITY Counted in Built up- Not Counted In FSI LIFT-FOYER-STAIRCASE HOLLOW PLINTH 14 L J UNIVERSITY 15 L J UNIVERSITY Layout and Carpet Areas 16 L J UNIVERSITY Layout and Carpet Areas 17  L J UNIVERSITY Layout and Carpet Areas Does not include: Does not include: Does not include: Internal walls or external walls Internal walls or external walls external walls Ducts or Projections Ducts or Projections Ducts or Projections Terraces Terraces Balconies 18 L J UNIVERSITY 19 L J UNIVERSITY Layout and Carpet Areas Reference 20 L J UNIVERSITY Super Built-up areas 21 L J UNIVERSITY Zoning Density 22  L J UNIVERSITY Zone- Density Management GDCR (FSI) SETBACK MARGINS GROUND COVERAGE BUILDING HEIGHT (abutting road width) VOLUMETRIC (FAR) BUILDING HEIGHT INTERMEDIATE FLOOR HEIGHTS FORM BASED REGULATIONS SABARMATI RIVERFRONT DEVLOPMENT- AUCTIONS GIFT CITY 23  L J UNIVERSITY PPH to FSI (Zone Planning) PPH planned 400 Hectare = 10,000 m2 for 400 persons Family size = 4, Unit home size is 100 m2 (25 m2 per person) Total built-up per hectare = 400 x 25 = 10,000 m2 50% goes in roads and Land deductions, roads, unusable land, etc. Total built-up per net land area = 50% of 10,000 + 10,000 = 15,000 m2 Total Built-up-use is 80% residential 20% Others (in R1,R2 zones) 20% off load of 15,000 = 3000 m2 + 15000m2 = 18000 m2 Residential zone planning = 18000/10000 = 1.8 FSI Both ppH and FSI are linked to Zone. ppH is used to design an zone while FSI is given to an individual plot for its development. 24  L J UNIVERSITY Dwelling Unit Per Hectare (DUH) Vs Persons per hectare (PPH) Affordable Housing 2BHK – (family size 4) – 60 m2 (15 m2 per person) Affordable Housing 3BHK – (Family size 5) – 90 m2 (18 m2 per person) Luxury Housing 4 BHK – (Family size 4) – 150 m2 (36 m2 per person) Luxury Housing 5 BHK – (Family size 5) – 200 m2 (40 m2 per person) 25  L J UNIVERSITY Urban Designers & planners = FSI/FAR Real Estate Builders =Dwelling Units/per Hectare ( Built-up Density) Government Agencies such as AMC, AUDA refer to pph = Persons per hectare (population Density) 26  L J UNIVERSITY HONG KONG NEW YORK PARIS FAR /FSI = 12.5 FAR/FSI = 16.4 FAR /FSI = 1.5 DU = 247 / Ha DU = 755 / Ha DU/BUPH = 12 / Ha Pop/PPH = 804 / Ha Pop/PPH = 1585 / Ha Pop /PPH = 62 / Ha 27  L J UNIVERSITY Postulates PPH is a tool to accommodate a certain Density in a Zone. FSI is a tool to manage PPH at Plot level. Built-up Areas are tools to measure profitability of a project by a Developer 28  L J UNIVERSITY GANDHINAGAR / CHANDIGARH DUBAI Los Angeles, CHICAGO VALLABH VIDHYANAGAR NYC- Manhattan SURAT 29  L J UNIVERSITY CENTRAL PARK- NYC GREEN SPACE for PUBLIC PURPOSE – Lungs for the City 30  L J UNIVERSITY Urban Commute What is the Most Commonly used mode of Transportation – A case of New York City DAILY AVERAGE ○ 56% -use - Cabs/Taxis ○ 68% City Bus ○ 75% Metro Train ○ 86% Elevators 31  L J UNIVERSITY NEW YORK CITY : CENTRAL PARK AREA: 843 ACRES Built/Founded in 1857 AD REAL ESTATE VALUE estimated by the property appraisal firm, Miller Samuel, to be $528,783 MILLION or $ 529 BILLION as of December 2005. 32  L J UNIVERSITY FSI in Zones and under Policy R1 Zone: 1.8 base + 0.9 Paid (2.7) R2 Zone: 1.2 base + 0.6 Paid (1.8) R3 Zone: 0.3 base CBD Zone: 1.8 + 3.6 Paid (total 5.4) RAH Zone: 1.8 base + 0.9 Paid (2.7) TOD Zone: 1.8/1.2/0.3 base + paid (total up to 4) Under Hotel & Hospital Policy: 3.5 or 4.0 Under High density Zone(only for R1 Zone) : 3.6 or 4.0 Under Tall Building Policy: 5.4 33  L J UNIVERSITY SMART GROWTH What is compact development? Compact development is neighborhoods or employment centers with most or all of the following: Concentrations of population and/or employment. Medium to high densities appropriate to the context. Mix Land Uses Interconnected streets. Creative approaches to parking. Pedestrian-, bicycle-, and transit-friendly design. Access and proximity to transportation. 34  L J UNIVERSITY TDR a tool for Smart Growth Allows Urban Densifications. Can be controlled – depending on upgradation of Urban Infrastructure. Incentives can be linked beyond FSI & Built-up Can be used to solve the housing backlog. Very effective for Slum Rehabilitation and Government Utility Buildings. 35  L J UNIVERSITY Transferable Development rights Builders are allowed to exceed their FSI for a particular plot, by transferring development rights from elsewhere unto the maximum Building height permissible. To acquire land for public purposes and reimburse them according to the land Acquisition Act, to speed up the acquisition of reserved plots of land, some of the states Governments use TDR Schemes Under the scheme, the owner develops the plot required by the Govt. for public purposes at his own cost up to plinth level and hands over the same without receiving any monetary compensation. The state Government however, in lieu, grants to the owner, FSI equivalent to the FSI of the land surrendered in the form of a Certificate of Development Rights (DRC). These DRCs are transferable as negotiable instruments, and are commonly called TDRs. To sum up, TDR means that FSI of a property under acquisition or reservation is transferred as movable property to some other property where the same can be utilized for construction of additional floors / premises exceeding the permissible FSI of the latter property. The Concept is also used in Heritage Conservation in Old Walled City of AMC 36  L J UNIVERSITY Approaches to Managing New Growth: The Gujarat Model Gujarat Does not use the “land acquisition” method (LARR- 2013) for Housing and Urban Development. Gujarat uses “land readjustment and pooling” method. 37  L J UNIVERSITY MODELS of Serviced land Delivery models Real Estate developers Land development (Rural-Semi Urban Plotting) Public Bulk Land Acquisition (DDA, CIDCo model,etc.) Bulk Acquisition + JV (KMDA) PPP + Land Acquisition (HUDA) Private Land Pooling & Equity Sharing (Magarpatta City) PPP -Land Pooling & Land Readjustment or Town Planning Scheme (Gujarat) 42  L J UNIVERSITY Land Pooling and Readjustment Method (TPS) In this method, the public planning agency or development authority temporarily brings together a group of landowners for the purpose of planning, under the aegis of the state- level town or urban planning act. As there is no acquisition or transfer of ownership involved, there is no case for paying compensation. A master plan of the area is prepared, laying out the roads and plots for social amenities. The remaining land is reconstituted into final plots for the original owners. The size of the final plot is in proportion to the size of the original plot, and its location is as close as possible to the original plot. A betterment charge based on the cost of the infrastructure proposed to be laid is levied on the landowners. Infrastructure is then provided utilizing these funds. 43  L J UNIVERSITY Land Pooling and Readjustment Method (TPS) Land Pooling in 150 to 400 Hectares ( Like a Developer- Bulk- Aekatrikaran) Multiple Land Owners – One Authority (Like a JD-or Redevelopment) A master plan of the area is prepared, laying out the roads and plots for social amenities. ( like an Architect or Plotting scheme developer) The remaining land is converted into final plots for the original owners. ( Like a developer ) The size of the final plot is in proportion to the size of the original plot, and its location is as close as possible to the original plot. Some Plots stay with the Authority for Auction as Land Bank A betterment charge is levied as Service Tax on Revenue share model 44  L J UNIVERSITY Town Planning Scheme Draft Scheme (Stage I ) Includes Planning & Finance part and prepared by the Development Authority (ROAD POSESSION) Preliminary Scheme ( Stage II ) First, Finalisation of Planning part of Sanctioned Draft Scheme by a Town Planning Officer appointed by the Government (FP POSSESSION) Final Scheme ( Stage III ) There after Finalisation of Finance part of Sanctioned Draft Scheme by the Town Planning Officer (BETTERMENT CHARGES) 45  L J UNIVERSITY TPS Model 46 L J UNIVERSITY 47 L J UNIVERSITY 48  L J UNIVERSITY TPS Valuation & area 49  L J UNIVERSITY TPS Valuation & area 50  L J UNIVERSITY TPS Valuation & area 51  L J UNIVERSITY Advantages of Town Planning Schemes Land Stays with the Original Owner ( no Acquisition) New FP (New Land ) is of better shape for Real Estate Development PPP Model – Authority Creates Value- Raises Land Value and in return gets 6 to 8% of Land as Auction Plot (Land Banking) Land Owner also gets land appreciation despite Land deduction. 52  L J UNIVERSITY Disadvantages of Town Planning Schemes Time Consuming. Draft To Final TP can take 15 to 25 years Possession of Plot is an issue ( For Owner as well as the Authority) Betterment charges are Levied at the time of Plan Passing. Valuation of each FP is unique- which is not reflected in the Betterment charge. Amalgamation of Land and variable deductions can affect individuals differently. 53  L J UNIVERSITY Town Planning Scheme under Section 40 may be prepared for any land which is in the course of development likely to be used for residential or commercial or industrial already built upon 54  L J UNIVERSITY TPS- Concept TPS mechanism enables ULBs to: Pool together land under different ownerships without acquisition and without disturbing original owners. Plan the area and reconstitute it into plots suitable for urban development and provide infrastructure. Appropriate land for public uses – streets, parks, EWS housing, etc. Decide the compensation to be paid to owners for appropriated land. Capture a portion of the increment in land value to pay for the infrastructure. Provide infrastructure prior to the development of an area. Plan and manage urban growth. 55  L J UNIVERSITY Town Planning Acts in Gujarat The Bombay Town Planning Act, 1915 enacted by Presidency of Bombay had a piecemeal approach of planning, for it had only concept of Town Planning Scheme First TP scheme Jamalpur, Ahmedabad 1917 (Declaration of Intention) Bombay TP Act 1915 provided for growth of part of city only & so was repealed by Bombay TP Act 1954 where the repealed Act made it obligatory to prepare Development Plan of whole city area with a rational approach To take care for the growth in fringe area of city Gujarat Town Planning & Urban Development Act,1976 enacted on 1st Feb.1978 repealing BTPA 1954 56  L J UNIVERSITY First TPS in Ahmedabad – Jamalpur The First TPS across the river is TP-03 The First TPS of Ahmedabad Sanctioned as on 1st Sepetmber,1925 Ellisbridge Sanctioned as on 1946. First TPS Across the River, 1946 Total Area:- 103.28 Ha Total Area:- 794.70 Ha 57 L J UNIVERSITY 58 L J UNIVERSITY PRAHLADNAGAR 59 L J UNIVERSITY 60  L J UNIVERSITY TPS- Case Study: Prahladnagar Draft TPS : 1. Base Map Preparation 2. DILR Certification 3. Reconciliation (melavni) 4. CTP Consultation 5. Original Plots (each Sno) Each survey no. is given a separate original plot no. to reduce the complications that occur after allotting final plots in joint ownership. Total no. of original plots were 297 Value of each original plot was estimated based on near by sales (Hedonic pricing technique) 61  L J UNIVERSITY TPS- Case Study: Prahladnagar Land Allotment 10% SEBC Housing 15% Roads 5% Parks and playgrounds 5% Social Infrastructure 15% Sale for Residential & Commercial (Auction plots) Total deduction up to 50% 62  L J UNIVERSITY TPS- Case Study: Prahladnagar Road Network Major road network 9.0 mt. to 36.0 mts. was tentatively fixed according to development plan with due alterations made as per site conditions. Roads were proposed so as to achieve sector type development. 63  L J UNIVERSITY TPS- Case Study: Prahladnagar Road Network Level 1 : 36m wide roads of 2.5 km length Level 2 : 24 m wide roads of 3.2 km length Level 3 : 18 m wide roads of 6.5 km length Level 4 : 12 m & below wide roads of 4.3 km length Bus routes on level 1 and level 2 roads 4 bus stops at major road junctions 64  L J UNIVERSITY TPS- Case Study: Prahladnagar Land Allotment Total area of the scheme 162 Ha. Total area of original plots 155 Ha. Final plots allotted to land owners 78 Ha. Net deduction 49.6 % Area of road 32.13 Ha Area of plots for public purpose 51.87 Ha 65  L J UNIVERSITY TPS- Case Study: Prahladnagar SEBC, Social and Auction plots GARDENS 66 L J UNIVERSITY 67  L J UNIVERSITY Draft TPS Final TPS 68  L J UNIVERSITY From Survey Land to Reconstituted Land (TP) 69  L J UNIVERSITY TPS- Case Study: Prahladnagar 70  L J UNIVERSITY TPS- Case Study: Prahladnagar Redistribution & Valuation statement called ‘F’ Form provides the plot details and valuation details The “original plot value” is estimated using recent land sales transactions in the vicinity & existing infrastructure Semi Final Value = S.F. Land Rate x F.P. Area ( Column 9) Semi Final - Original Plot value = compensation or contribution to be pay to/by the owner ( Column 11) Final Plot Value = F.P. Rate x F.P. Area ( Column 10) Final – Semi final plot value = increment in value ( 50% is born by the Authority). 71  L J UNIVERSITY Sample F-Form 17.29 10.81 lacs lacs 72  L J UNIVERSITY Sample F-Form 10.81 43.24 -6.48 32.43 16.21 lacs lacs (-6.48 9.73 lacs 73 lacs lacs lacs 50% lacs) Betterment charge  L J UNIVERSITY Sample G-Form 74  L J UNIVERSITY Advantages of TPS The build ability of plot increases. Regular shape plots for efficient BUA Accessibility is improved. (no easements) Higher Land value-Serviced urban land. Availability of facilities & amenities nearby. Better linkages with other parts of city. Improvement in environmental quality of the area due to hierarchical road network and open spaces. 75  L J UNIVERSITY Limitations of TPS Issues of Possession & Plan Passing in Draft Stage of TPS Protecting Auction Plots Time consuming and laborious if T.P.O. is not provided adequate establishment & infrastructure Difficulties encountered in change of the land records in revenue (promulgation RoR) T.P.S. is essentially an Area Planning Scheme. For large parcels of land for specific Town level Public purpose requirement, application of Land acquisition act, 1894 needs to be assorted. 76  L J UNIVERSITY Status of Town Planning Scheme 77  L J UNIVERSITY Map of Existing and Proposed TPS 78  L J UNIVERSITY Process of Documentation to Approvals Part 1 -Basic Document Part 2 -Project Design & appointment of Person On Record Part 3 -NoC Part 4 - Submission Drawing Part 5 – Document Checklist – Scrutiny Fees Payment Part 6 – Approval From AMC Part 7 – Progress Report Part 8 – Building Use Permission Part 9 – Society Handover 79  L J UNIVERSITY Important Reference Documents for Urban Land 80  L J UNIVERSITY Part 1 -Basic Document Site Survey Zoning Certificate Part Plan F- Form 7/12 , City Survey Record ( Revenue Record ) Area Verification ( Site Survey. F-Form , Revenue Record ) Soil Test Report 81  L J UNIVERSITY Zoning certificate Zoning certificate will have a data of Zone and above that any Effect of road widening , TOZ Etc 82  L J UNIVERSITY Part Plan 83  L J UNIVERSITY Part Plan 84  L J UNIVERSITY F - Form 85  L J UNIVERSITY Part 2 -Project Design & Appointment of Person on Record Architect Appointment Project Layout – Basic Discussion Appointment Of Liason Engineer Person On Record Developer on Record ✓ Engineer / architect ✓ Structure Engineer ✓ C.O.W. ✓ SeOR 86  L J UNIVERSITY Part 3 -NOC’s T.P. Scheme Opinion Development Control Opinion Betterment Charges – No Due Certificate Tax – No Due Certificate R.D.P. Opinion ( if Required ) Fire Opinion ( if Required ) Airport Opinion ( if Required ) Environment Dep. Permission ( More than 20000 Sq-Mt Built Up area ) 87  L J UNIVERSITY Part 3 -Ahmedabad Airport Height Permission Map 88  L J UNIVERSITY Part 4 -Submission Drawing Drawing –Layout Plan , Building Unit Plan , Section Area Statement – Built up area , FSI Calculation , Rera Area Calculation , Parking Calculation Drawing/ Data For Dustbin, Percolation Well , Structure Diagram , Environment Data , key plan , Margin , Common Plot condition of CGDCR , Fire Drawing 89  L J UNIVERSITY Part 5 -Document Checklist 90  L J UNIVERSITY Part 5 -Document Checklist 91  L J UNIVERSITY Part 5 -Document Checklist 92  L J UNIVERSITY Part 6 -Commencement Certificate Developer Will Receive Commencement Certificate along with approved Plan Terms of Execution of Construction 93  L J UNIVERSITY Part 7 -Progress Report Intermediate Progress Report At Basement Level At Plinth Level At First Floor Level At Mid Level At Top Slab Level 94  L J UNIVERSITY Part 8 -Building Use Permission Work Should be Finished at Site Demarcation of Parking area Photograph of Letter Box , Light Fitting , Trees , Dustbin Fire NoC Lift Licenses Approved Plan Copy Structural Drawing Structural Stability Certificate Building Insurance Member List ( Only Sold Unit ) 95  L J UNIVERSITY Part 9 -Society Handover Formation of Service Society / Creation of Association Checklist of Construction to Each Member Master File Handover to Society Original Licenses / Warranty Card Handover to Society / Member’s 96  L J UNIVERSITY Thank You 97