Z
Zellars19
New Member
Before a real estate development can proceed, the formal permission of the local planning authority – the district council or the local body – must be obtained. While actual decisions are made on a case-by-case basis, proposed developments are normally required to conform to the over-all structure plan drawn up by the local body for the area under its jurisdiction. General building regulations also will have to be complied with. In many respects, therefore, structure plans and building regulations represent control by general regulation.
Planning consents can be regarded as a form of physical control for dealing with certain aspects of market failures, mainly those arising due to the conditions necessary for the efficient utilization and allocation of the available resources. The appropriateness of planning as a method of control can be examined in the context of how it deals with the causes of market failures.
In Kerala real estate developments will get streamlined only through proper checks and balances. Due to the ever-vigilant civic authorities, speculators and other land hoarders are not able to create artificial scarcities and thus push up the prices of land in the prominent areas of the cities and towns. When the real estate prices started escalating due to the then prevailing economic conditions, the government of the day stepped in and thus speculation in land got curbed.
Again there was a boom in real estate in 2004 and that boom is continuing till now. The government along with the local bodies has already tightened the rules governing each and every major real estate development in all the cities. It is now difficult to start work even on a compound wall facing a prominent street without the necessary sanction from the concerned authorities. The recent demolition spree from the part of the local bodies on encroachers into public roads and other open spaces is now proving as a deterrent.
Planning consents can be regarded as a form of physical control for dealing with certain aspects of market failures, mainly those arising due to the conditions necessary for the efficient utilization and allocation of the available resources. The appropriateness of planning as a method of control can be examined in the context of how it deals with the causes of market failures.
In Kerala real estate developments will get streamlined only through proper checks and balances. Due to the ever-vigilant civic authorities, speculators and other land hoarders are not able to create artificial scarcities and thus push up the prices of land in the prominent areas of the cities and towns. When the real estate prices started escalating due to the then prevailing economic conditions, the government of the day stepped in and thus speculation in land got curbed.
Again there was a boom in real estate in 2004 and that boom is continuing till now. The government along with the local bodies has already tightened the rules governing each and every major real estate development in all the cities. It is now difficult to start work even on a compound wall facing a prominent street without the necessary sanction from the concerned authorities. The recent demolition spree from the part of the local bodies on encroachers into public roads and other open spaces is now proving as a deterrent.
