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The land acquisition bill, which states the procedure for acquiring land and the compensation that must be provided to the previous owners, might end up increasing the real estate prices and property prices in general. The overall project prices are expected to increase by 5% to 10%.

 Many existing projects are facing issues due to the inability to buy a collective piece of property. This bill, while providing real estate buyers with the security of owning properties, might also dissuade developers from investing in big projects as purchasing a continuous peace of property will now become costly. However, the bill still needs to be approved by Rajya Sabha and signed by the president before being translated into a law. 

In projects which require land to be acquired for public-private partnership or private companies, the bill requires the consent of 70% to 80% of the land owners respectively. The bill guarantees compensation of four times the market value in rural areas and twice the market value in urban areas for the land acquired. 

The Industry expects a four fold increase in the price of real estate projects and cost of infrastructure. This bill might also make it difficult to acquire land for developing intergrated townships. Even land acquisition between two parties will need the interference of government which might bring in more license issues etc. The clause of mandatory consent of 80% of the owners for private projects and 70% of the landowners for PPP projects might being about a delay in the land acquisition procedure. This might also bring in eventual increase in prices of land also. 

However, this is expected to bring in increase foreign investment in real estate due to the increase in transparency and possible reduction in title issues.

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