Saturday, 30 August 2014

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Why DDA Housing Scheme is Preferred More

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Delhi Development Authority has recently announced the 2014 housing scheme for which the applications will be invited from September 1st till 9th October. The authority is offering a total of 25,034 flats in this 2014 scheme making it the largest such offering ever. The flats in the scheme are priced between Rs 14 Lakh to 1.2 Crores.

The earlier 2 schemes of DDA in 2008 and 2010 received 5.67 and 7.5 lakh applications for 5,238 and 16,118 flats respectively. The authority is expecting to receive about 15 lakh applications this time from applicants across India. The printed application forms and brochures will go on sale from September 1st.

Now, when we compile the numbers, the applications received in 2008 were 108 times more than the number of flats offered while the number fell down to 46 times in 2010 scheme but still a huge number. Since the 2014 housing scheme is coming after 4 years and offering highest number of flats across the different income groups, the number of applications may cross even 15 Lakh.


Now the question arises, why so many people apply for DDA schemes while there are many private developers offering houses at different locations in Delhi? Below are the two major reasons that we can think of.
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Cost of Flats

This is probably the biggest reason why people prefer DDA schemes more than buying flats in private market. However the authority is offering flats at a starting price of Rs 14 Lakh which is not a small amount but when you compare it with the market prices for a similar flat it is much lower. For example, the 2BHK flats in Dwarka which are being offered by Delhi Development Authority at a price between Rs. 14 Lakh to 70 Lakh are priced between Rs 70 Lakh to 1.2 Crore in private market.

Security and Assurance

The second biggest reason that we can consider is the security of ownership. The real estate market in India especially in the metropolitan cities is full of fake people and properties. The private developers, real estate agents and brokers can make a fool of you by selling a flat to you which they have also sold some someone else, at the same time. If you do not take steps carefully, there are many chances that you can be the victim of real estate fraud. There are no such chances of frauds with flats in DDA schemes. However it has happened in past that some successful applicants sold their flats to more than one customer but DDA has taken some serious steps this time to almost eliminate this kind of unsolicited trading.

The assurance in terms of future developments is that sometime it may happen that private developers do not take proper approval from the relevant government departments to build the housing project and the project be put on hold or demolished. This way the money of investors and individual buyers stuck for years until the case is finalized.

While cost and security of flat ownership are the two biggest reasons, the other things such as government facilities, the location and other residential facilities cannot be ignored.

Even in the DDA 2014 flat scheme, there have been several improvements made compared to the earlier schemes in terms of both policies and construction quality. For example, the authority is withholding the flat ownership for first 5 years of allotment to reduce number of applications done solely for investment purpose and improve the distribution among the ones who are in real need of a house. On the construction side, the authority is using prefabricated material and latest construction technology to build the flats which will also be environmental friendly.
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Read more about DDA 2014 housing scheme, eligibility criteria and application procedure at http://www.masterplansindia.com/news/dda-2014-flat-scheme

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