Karolbagh-Kishanganj springs up as the most strategically located site for real estate development

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NEW DELHI: Rail Land Development Authority in its pursuit of generating revenue by monetizing vacant land parcels available at pan India level, has recently announced a most strategically located site at Karol Bagh – Kishanganj Delhi.

According to National Real Estate Development Council (NAREDCO)- an apex real estate body which works under Ministry of Housing & Urban Affairs, This is a great opportunity for the real estate developers & investors as the mere proximity of Karol Bagh – Kishanganj site to CBD of Delhi, hardly 5 km with 2 metro stations within 1.5 km.

The land is spread over 15.27 ha under Residential land use zone in the heart of Delhi. Moreover, with major Government push for housing and huge gap in mid segment housing supply, the proposed development, has potential of over 5.2 million square feet of built up area, shall be in huge demand in Delhi NCR.

The development format chosen by RLDA is quite akin to in-trend joint development model of real estate industry with commercial consideration of land premium to be paid to RLDA over 8 installments in 7 years with option of extension of 2 more years. RLDA shall select prospective Developer through e-tendering, with the land premium as the bid variable. The reserve price for the Karol Bagh – Kishanganj site has been pegged at Rs.1,862 Crore with an effective realizable FSI of approx. 3.5. Developer shall also construct 750 railway houses costing 200 Cr as part of his obligation.

The other key attractions of doing business with RLDA are 99 years of lease with Developer having complete independence on master planning, development & marketing rights. The intrinsic strength of the site being under government ownership is a unique advantage.

A pre-bid meet has been scheduled for 29th August 2019 in Delhi to brief prospective developers & provide any clarifications sought on bid documents & bid process.