For integrated new projects, about 5000 – 6000 acres of land is available with the government, which was acquired under the Urban Land (Ceiling and Regulations) Act or vested in the Government for the purpose by interested parties. The full cost of land at a very high rate, varying from Rs.100 to Rs.50/sq ft of built up area is already assumed in the cost of construction. No land will be required for the reconstruction projects; on the contrary, some pockets of land will be made available due to the reconstruction of multi/storeyed buildings with additional Floor Space Index (FSI). However, nominal costs for land and infrastructure are included in the final cost of construction.
Since more than 50 percent of the urban slums are on government lands, the question of cost of land for construction of dwelling units for slum dwellers, does not arise. The landowners on whose private land some of the slums exist now, will have to be paid at full market rates. So in the cost of construction an average rate of Rs.25 per sq ft for the built area is assumed by including the cost of land.
Properties in Kerala are now being put to better use through the application of innovative policies and management practices. Due to the high cost of land, the available land resources are now being put to better use. By building higher and higher, the leading builders are now creating more living spaces out of the fixed land area in the key urban areas.
In the future greater developments are likely to be witnessed in the cities of Trivandrum, Kochi and Kozhikode in Kerala. Already the government is under increasing pressure to relax the upper limit of the newer building projects. If the world cities of New York and Tokyo can experiment with malls and apartment complexes that tower to a height of more than 60 to 70 floors, such developments if allowed in Kerala will enhance the value of the available land.