This study is intended to explore the extent of converting arable land for urban use and the pace of construction activities on the residential housing schemes. In most of the schemes, more than half of the plots are inbuilt because by-laws are very flexible and owners of vacant plots have no fear of cancellation and they consider this investment a better safeguard against inflation. Moreover, speculators invested their money in the plots because no cost / taxes are involved in the keeping of vacant plots. By implementing strict by-laws and imposing capital gains tax on vacant land and converting the collected taxes from the schemes to create revolving funds for house building for really needy, low-middle income groups, the extent of conversion arable land into housing schemes can be reduced
Key words: Speculators, pace, conversion, vacant plots, density, land policy.