Can ODD Even Rule have an impact on Delhi NCR Real Estate?

By : 360 Realtors

25 February, 2016

Delhi which is the capital of India offers excellent work opportunities for people all across India. The cosmopolitan city has good infrastructure with wide roads and metro connectivity to all major areas across Delhi NCR. However the rising pollution levels and the crowded roads are the biggest challenge for the city's people. 

A team of researchers from the University of Surrey had found Delhi to be the most polluted city in the world. The city suffers from unfavorable weather, as well as a toxic blend of energy sources, geography and population growth which has increased the pollution levels to dangerous levels, according to the study. In an effort to curb the growing pollution levels in the city, the Delhi Government did a trial run of the odd-even rule from January 1 - January 15, 2016.

Under the rule, odd number cars were allowed on the city roads on odd days and even number cars could be only on even days between 8:00 AM to 8:00 PM. The penalty in case of violation of the rule was fixed at Rs 2000. The trial run showed a significant difference in the traffic on Delhi roads, with more people taking to carpooling or public transport. The rule could not be implemented permanently, due to lack of reliable public transport in Delhi. As most of the people shifted to public transport, there was over crowding at major metro stations and bus stops, and major security issues were found in car pooling as well.

Now the Government has proposed a second trial run of the odd-even scheme from April 15 - April 30. In an effort to make the scheme a success the Delhi government has announced that the public transport system will be improved and over 3000 new buses will be launched by year end. A survey taken by the Delhi government over 4.1 lakh people revealed that over 81% were in favor of the odd-even scheme and 60% of Delhi residents wanted the scheme should be made permanent. For the trial run the government is planning to hire 5500 buses, to ease the burden on public transport and make life easier for commuters.

Possible Impact on Real Estate

The Odd-even rule can have a major impact on the real estate market as many home owners are planning to shift from Delhi to nearby places like Noida or Gurgaon, where most of the offices are located if the Government decides to go ahead with the plan. Daily riders know, if one day is going to be a bliss, next day, if they have to take a public transport, its going to be an hassle. As more offices are coming up around the outskirts of NCR, including Manesar, Gurgaon Sohna Road as well as Greater Noida, and real estate market in these areas are likely to pick up as people will be looking to relocate near their work areas. 

If implemented permanently the odd-even policy can help in reducing the pollution levels as well as the traffic situation in Delhi considerably; this in turn may give a boost to the real estate market in the city as people have started to move out of Delhi due to air pollution leading to lung diseases like Asthma, etc. Air Pollution in Delhi has been a concern for the Real estate market as people hesitate to buy permanent houses in the city due to fear of getting diseases from the harmful pollution levels. Over the last few months, many families have moved away to cleaner towns and cities or outside India in search of clean air to breathe. If the government is able to curb the pollution levels significantly the property prices in the city may escalate, with more people making Delhi their home. 

A lot of people have turned to creative solutions, to counter odd-even rule such as exchange of cars for the duration of the odd-even scheme! Many people also contemplated getting a second car with an alternate odd/even number apart from their current car, which is a bit sad. However, the best solution to pollution problem would be shifting to a location near your work place, which is a win - win situation, as it saves time, money as well as fuel. 

Recently the Union Cabinet approved changes to the Real Estate Bill 2015, which made it mandatory for developers to invest 70% of the project cost into an escrow account. The amendments were made to the bill to safeguard buyer interest in case the developer backs out of the project or there are significant time delays in project delivery. Under the Bill the developers would have to register all projects and reveal details of promoters, project layout, approvals, land status and more. Buyers can now approach 644 Consumer courts in case of any grievances, which would help in reducing litigation costs involved for the buyers. This would help in protecting the interest of the buyers and improve buyer sentiment in the real estate market. 

Overall a host of infrastructure developments, improved government policies can compliment ODD - Even rule well if implemented permanently. With more positive changes expected to come in the upcoming Union budget, the real estate market is slowly tilting in the buyers favor and is expected to give manifold returns!