(This article is a part of series of articles published in collaboration with avenue.in Avenue is a premier digital realtors based out of Amaravati, providing end to end property solutions)

Click here to read about current land prices and trends in Amaravati area

As the readers are aware, land allocation in Amaravati has reached penultimate phase. To implement effective land allocation strategy, CRDA has reviewed the policies which are in effect in Maharastra, Haryana and Ahmedabad. Based on the feedback,  CRDA has made some changes to plot allotment policy after requests from huge number of land owners.
Most of outsiders bought lands in the multiples of 250 yards thinking that plots would be allotted same way, but in the initial  CRDA policy there were no plots with sizes 250 ,500 & 1000 yards. As per the popular request , now CRDA has added three new plot sizes 250, 500, 1000 in residential section. CRDA has released land pooling policy 10 days back and has requested land owners to submit 9.18 A & B forms by May 10^th. There is unofficial news that this dead line will be extended till May 26th. Also there has been talk that CRDA will not officially extend the date, but will allow land owners to submit 9.18 forms till end of May. However, we caution our readers to submit forms as soon as possible.

Residential land terms: 

To regulate the construction in capital area, CRDA has put restrictions on number of floors, Floor space index (FSI), open space.

• Number of floors: For smaller plots, CRDA has approved G+3 and for plots bigger than 2400 sq yards, CRDA has approved G+11.
• Floor Space Index: This has created lot of confusion in capital region and a number of readers had questions on definition of FSI. FSI is a common real estate metric to measure the density of site development. It is the ratio of a building’s total floor area to the size of the piece of land After complaints from farmers government has removed FSA limitations on the constructions in the plots and made those similar to rest of the state.
• Open Space: This is a very common measure and government has pegged this around 60%, which is the norm.

Best strategy to select plots: 

There is lot of confusion within land owners regarding which size plots to select. This decision has to be made based on their long term & short term plans. But we suggest opting for at least one bigger plot for long term and couple of smaller plots if you have plans to sell or if you anticipate any need for cash. For example, if you have had 1 acre, then of 1000 sq yards you would be getting back, select one 600-700 sq yards plot and other smaller one. Please make sure that you get your options right, because CRDA will not allow you to change options after submitting it once (check below for all important reminders).

• Bigger plots would be hard to sell if the prices increase substantially and building an apartment or residential community would be only option but in long term it pays off as the demand for gated communities is increasing in India which can be built only on bigger plots
• There are lot buyers who waiting for plots to be released, most of them have budget between 20-40 lakhs.
• We estimate there would be huge demand for smaller residential plots 120 – 500 Sq. Yards.

(Buyers are advised to conduct their own independent research before making a purchase decision.Telugu360.com or its partners are not responsible for any advice made in the article. )

What is 9.18 form:

This form contains two subsets A & B.

1. 8 (A) should be submitted with the plot sizes a land owner wants his share to be divided and also specify what he wants to do with any excess Sq. Yards he might have left with after plots were allotted.

Ex: Let’s say a land owner has an eligibility to get 1030 Sq. Yards based on the land submitted for land pooling. He/she should submit 9.18 (A) form to request whether he /she wants a single 1020 Sq. Yard plot (Nearest plot size available to his 1030 Sq. Yards) or does he/she wants to split it in to multiple plots.

CRDA provided 2 options for the excess 10 Sq. Yards (out of 1030 Sq. Yards) the land owner is left with.

• TDR bonds: Land owner can request TDR (Transfer of Development Rights) bonds which will be valid in the CRDA region. For each Sq. Yard CRDA will issue 2 Sq. Yards worth of bonds.
• Auction: Land owner can request joint allocation with the rest of the land owners who have excess Sq. Yards. CRDA is allocating one 600 Sq. Yards plot in each village for this purpose. CRDA will auction this 600 Sq. Yards plot and give money to land owner his share by deducting taxes and charges that apply.
• Joint Allocation: Two or more land owners can request Joint allocation.

 

For Ex: there are 3 land owners who have an excess Sq. Yards of 40 each and all 3 can submit 9.18 (B) to request a 120 Sq. Yards plot. All three will be jointly allocated one 120 Sq. Yards.

2. 18 (B) should be submitted only if two or more land owners are requesting joint allocation. Two or more land owners can request individual plots in 9.18 (A) and also request joint allocation by submitting 9.18 (B)

For Ex:

There are 3 land owners who have eligibility of 400 Sq. Yards each; instead of requesting one 400 Sq. Yards plot for each they can jointly ask for one 1200 Sq. Yards plot.

Important reminders: 

Few important points in the plot allotment policy that every needs to remember before submitting 9.18 form.

1. Once 9.18 forms are submitted, CRDA doesn’t allow changing again. Be sure about the options you select.
2. CRDA doesn’t allow splitting of a plot later point of time. For example, if you get a 600 Sq. Yards plot and if you want to construct a house in 300 Sq. Yards and leave 300 Sq. Yards for future use but CRDA won’t approve this plan, you have to submit plan for whole 600 Sq. Yards
3. No of floors permitted in a plot size doesn’t change even if you club multiple plots. As per the current policy G+3 floors are allowed for a 300 Sq. Yards residential plot. In future if two land owner who has 300 Sq. Yards each cannot request for G+5 together even though G+5 is allowed in 500 Sq. Yards & more plots.

Majority of the local land owners still didn’t submit 9.18 as they have complaints about FSA and capital gains, Village boundaries (Gram Kahantam) etc… CRDA have promised to solve those problems many times failed especially Village boundaries. There are almost 400 applications from land owners to exclude their lands which are very close to village from land pooling.