Land pooling- Advantages & Disadvantages

Land pooling is a technique for stimulating efficient and even-handed land development in the urban area. This concept is worked out in many nations of the word and this concept is at least 200 years old. The concept has been more popularly utilized in Korea and Japan in the recent times. This concept is more effective when it is used in small to medium areas in terms of size.

How Land Pooling works?

The concept of land adjustment is to accumulate small sized rural parcels of land into a large-sized land parcel. It also including providing the land with good set-up in a systematic way and give back the re-formed land to its owners after taking out the cost of provision of the setup and the public areas by sale of few serviced lands. Generally, the scheme of land pooling is taken up by the national government titling an area which is supposed to be changed from agricultural to urban land usage. A specific subdivision plan is established for a joined planning of that specific area. The provision of the services and the infrastructure is sponsored by the sale of some of the plots those are within the area, mostly for the money-making activities.


The original landlords will be given the plots within the reformed area. Though this area is small, not it has entry to the infrastructure and allied services.

Related: What is Land Pooling

Land Pooling- Use of the Method

This method is used when-

  • Unsuitable and scattered subdivisions delay the development of the private sector
  •  The old urban structures need to be rearranged
  • An extra provision is required for the infrastructure as well as services
  • There are certain important prerequisites for the efficacious implementation of land readjustment

It has to be funded by regional, national and the municipal governments. It is also necessary that the national Government gives the rules and policies to guarantee the fairness in the system. The agency for the land readjustment should be provided with the powers to coordinate and with others to get entry to help from different government departments. The system for cadastral system and land registration has to be powerful. Also there should be enough number of dedicated and skilled representatives on the local level and also we trained and result oriented values. As this method is depending upon the private and public cooperation, most of the landlords must give support to the use of this process. Forcible gaining of lad should not be practiced.

Related: Factors affecting Land Value, Land Use Planning

Advantages of land pooling

There are many advantages of land pooling.  It gives a nice chance for planned growth and development of the land and the infrastructure linkage and it also gives away the issues of land and densities. There are many land developer in Asian nations who generally have issues as plots in the urban area are small in size, shaped irregular and do not offer easy access to the main roads. Moreover, most of these plots are not for same and it is really difficult to find out enough number of plots those are close from each other’s and hence development of building is little disturbed.

 The method of land readjustment is very catchy and it makes an impact on the place and timing of new urban development as it is being very tough to get the support from public for the usage of expropriation for development of the land and provision of the correct infrastructure. The method is commonly funded and commenced by the landowners sometimes as they can make enough profits from this project. On the other hand, it also helps to avoid the expensive and not so common government process for gaining the land.  The land readjustment will help the landlord to get back the big part of the land. Also, there is a need for a formation of partnership between the landlords and the public sector. Therefore there I need for the establishment of close links at the time of this also gives a good chance or the infrastructure and service providers and to recover the sustained costs and to get the land access. The recovery of the cost is a big obstacle for the governments in many of the Asian nations; this would possibly be the most important factor. If the administration is done in the systematic way then it could also provide for the increased land distribution equality.

Land Pool Design

Not just the landlords in the area but it could also be a good means of providing entry to land for the lower income housing scheme.

Disadvantages of the land pooling

Not just benefits but there are also many disadvantages of the land pooling. As the landlords get a chance to develop the land, the current system does not force for the land development. There are many countries where the demand of land is higher for example Republic of Korea or Japan. In such countries there is a common practice of using the land as a saving source or investment tool. This has also resulted into higher rates of the land and land assumption. Also there is another big incentive for the landlords to give encouragement to the high land values. They are also encouraged to provide for the infrastructure and related services. The implementation of land pooling technique in these big countries has fundamentally stopped and there is a considerable increase in the price of lands value since last years.

Land Pooling- Effects 

There are no incentives available for maintenance of lower prices for land and no other in-house mechanism for the low-cost housing schemes, the method has received a lot of criticism for not being so operational. However it is very important to maintain some incentive for the landlord contribution, it can also be said that the profit margin is unnecessarily on the higher side and role of the public sectors has to be considered in profit sharing. This is the reason public sectors need to have a focus on the cost recovery.

This concept is a very simple one and it is based on the private-public cooperation and also related discussions. It needs very big human resources as per the qualifications and numbers too. There should be an availability of the negotiators as well the land values. We can see that in many of the Asian countries skilled staff is short in Government organizations. This is not a new idea in India. In Gujarat, this has been implemented under TPS (Town Planning Schemes.)This TPS has permitted for a 76 Km long road to be constructed in Ahmedabad.

Conclusion: A good amount of work has to be done in order to study pooling a and that is related with the legal frame so that it can really be a good substitute for the land acquisition that takes place in India. The authorities have to be very clear with the people who are affected due to the land acquisition. They need to make it clear about various topics like the compensation, or settlement process etc. If treated well, land pooling can be more and more legitimate in near future.

Also Read: Greenfield Development