New Gujarat Policy May Give Freehold Status to Housing Board Colonies

Gandhinagar, May 12: Gujarat is preparing a new housing policy to boost affordable housing by redeveloping old housing board colonies. Rules will be relaxed, and colonies may get freehold status, allowing easier sale and transfer of properties.

Freehold Status Explained

Under the policy, the government may notify all colonies by the housing board or any authority as freehold to expedite the redevelopment process. Currently, all housing board colonies are on a 99-year lease period, making their sale or transfer restrictive. Once the government decides to make them freehold, property holders will be able to dispose of their properties easily for redevelopment.

Developer Incentives

The government aims to offer 3+ floor space index (FSI) to make redevelopment projects more attractive. Developers will get more land and the option to earn from selling more apartments after allotments to original dwellers. The government may also offer more open land to developers for commercial development to fund housing projects.

Policy Objectives

One of the objectives behind the policy is to make room for cost-effective homes for new buyers in good areas where prices of other properties are comparatively high. Development rules may also be relaxed for all government-authority managed or private housing societies.

Timeline

The policy, currently being developed by the urban development and urban housing department, is expected to be notified soon. "We have prepared a new draft policy based on primary consultations with stakeholders and are expected to announce it shortly for public consultation," a source close to the development said.