Need for land use policy in construction industry
The current scale of property development has mostly taken place in the capital city and to some extent in other towns by way of the construction of high rise luxury apartments. However, the housing hunger also is seen with greater intensity among other classes of house seekers as well.
Non availability of housing on a sufficient scale to meet the needs of middle and lower income groups has caused wide-scale land fragmentation not only in and around large towns but also in suburban areas and in areas having suburban influence as well.
Such a situation has led to a shortage of lands for industrial and agricultural development at reasonable price levels. This is in spite of the introduction of the Land Fragmentation Act that precludes fragmentation of lands in excess of four hectares. This Act has however not made much impact. This is so due to some practical difficulties in implementing which are not discussed here. Urgently required is a land use policy directed towards building high rise apartments in small towns to attract middle and low income groups. Nevertheless “free-lance” property developers prefer building luxury apartments owing to high profit margins. This is notwithstanding the fact that such constructions are gradually reaching saturation level at the current time.
In order to promote the construction of apartments for the middle and lower income groups, the state should work in tandem with property developers by way of granting concessionary credit facilities and providing infrastructure like schools, improved public transport and importantly government institutions whereby the need for uses of such apartments to go to larger towns often need not arise. This will contribute to reduction of traffic in large towns.
This type of residential concentration will lead to a drop in land prices in the hinterlands making it attractive for industrial and agricultural investors.
The greatest obstacle faced in the construction industry is the shortage of skilled labour. The state should make a concerted effort to increase such labour by providing training schools to attract school leavers.
Land is the platform for all activity. Optimisation of its use embodying the trappings of administrative practicability, economic viability and social justice is vital.
D.C. Sosa
Incorporated Valuer
Negombo