ProPropertyNewsCDA Proposes Renting Plots to Private Schools to Shift Them from Residential Areas

CDA Proposes Renting Plots to Private Schools to Shift Them from Residential Areas

ISLAMABAD: The Capital Development Authority (CDA) has proposed a new policy to allocate plots on a rental lease basis to private educational institutions.

The civic body came up with the new plan for private schools that have been unable to move out of residential areas. It has decided to rent out plots to these schools instead.

This proposal will be discussed in the upcoming sixth meeting of the CDA board. The current rules do not allow the agency to rent out land to anyone, so this will be a change. The agency already provides land to government schools at a discounted rate, but private schools have to buy land at market rates.

For this purpose, the CDA has identified over 100 available plots in its sectors, including new ones. The board will decide on the matter if the proposal is approved.

The civic agency plans to give the plots on rent for 20 to 25 years, and monthly rent will be collected from school owners. The schools will not charge fees beyond the agreed amount.

It has categorized schools charging different fees and will ensure reasonable fees for students.

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Previously, the CDA had allotted plots to several private schools at nominal rates, but the relief was not passed on to the parents.

According to an official, private schools are considered profitable, and the CDA should auction the plots according to market values instead of renting them out.

However, those in favor of the policy argue that the CDA should facilitate private schools moving out of residential areas, where around 400 schools are currently operating.

In 2019, a committee comprising officials of the CDA, education department, and other stakeholders had proposed that private schools operating in residential areas be given three years to relocate.

It was also suggested that montessori and daycare centres should be opened in every sector of the city but the Federal Directorate of Education refused to allow the CDA to create new plots on the premises of school and college buildings with vacant areas/playing fields.

Once the board approves the proposal, further steps will be taken through a committee to fix the fee and rents. The CDA will change the regulations to allow rental modal, which could generate around Rs1 billion in annual rent.

The committee will also ensure that private housing societies start construction on plots designated for schools.

In addition, the CDA will transparently offer available plots for schools and colleges by a committee comprising members from other ministries.

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