The Delhi Development Authority's housing schemes are eagerly awaited because the flats on offer are cheap, spread across good localities and have decent build quality.
In 2008, 5.67 lakh people applied for DDA's 5,238 flats (over 100 applicants per flat). Two years later, 7.5 lakh people had applied for 16,118 DDA flats. The government agency has reportedly printed 15 lakh application forms for 25,000 flats that will go on sale from next week.
DDA flats have been massively popular because they are seen as an overnight ticket to prosperity. Consider this, a 2 bedroom, hall, kitchen (BHK) DDA flat that will go on sale next week in Dwarka and is priced between Rs 41 lakh to Rs 70 lakh (depending on the area). The market rate for such a flat is between Rs 70 lakh to Rs 1.2 crore, brokers say.
However, the excitement that precedes a DDA scheme is missing this time even as the agency gears up to launch its biggest-ever housing bonanza. That's because the DDA has for the first time introduced a five-year lock-in period for ownership of flats.
The agency says it will not execute the conveyance deed with flat buyers for five years. In simple terms, the agency will not transfer rights to own the property for five years. So, those who are lucky enough to get a flat in the upcoming scheme will be able to live in the flat or rent it out, but will not have selling rights for five years.
The new rule is a dampener for brokers and investors, whose sole motive to buy a DDA flat was to earn quick profits.
However, the development is a big positive for end users as it will keep out speculators and brokers, whose sole aim is to drive prices higher.
The agency had earlier wanted to reserve 80 per cent of flats for Delhi residents, which would have cut down competition even further, but the proposal was later scrapped.
Here's all that you should know about DDA's upcoming scheme,
1) Offer opens on September 1 and closes on October 9. The draw is likely to be held in October. Flats will be handed over in March 2015.
2) Any Indian citizen, above 18 years, can apply. The applicants must not own any residential flats or plot in Delhi. One person can submit one application only.
3) Application fee is Rs. 1 lakh. Many banks will announce schemes to finance the application money. For unsuccessful applicants, fee will be refunded within 90 days of the draw of lots.
4) 90 per cent of flats (22,600) are one-bed room apartments located in prime areas such as Vasant Kunj, Dwarka and Rohini. Approximately, 1,700 flats would be 2 BHK and 3 BHK.
5) One BHK flats are priced above 14 lakh, two BHK between Rs. 41 lakh to Rs 70 lakh, while high-end three BHK flats will start at Rs. 1.2 crore.
(With inputs from Press Trust of India)