State governments are moving in to contain speculation by real estate developers. While the Haryana and Rajasthan governments have started imposing Section 4 of Land Acts declaring their intent to acquire land for development and therefore a freeze on unplanned private development, the Noida Authority has moved in and taken action against the Rai University which had constructed a campus on land listed as agricultural.

In Gurgaon property prices fell by as much as 15% after the Congress government in Haryana under chief minister Bhupinder Singh Hooda started going slow on change of land use from agricultural to commercial or residential. The argument, explains a senior bureaucrat in the state, was that there has been sufficient change of land use in the last few years and it is better not to sanction greenfield development until that land gets consumed.

In Gurgaon, land and real estate values had scaled up about 50-100% in the last few years beacuse of intense speculation by investors who booked in bulk in every new project that was issued, in anticipation of rising values.

More: financialexpress.com

Gurgaon News.