India Investment Property

NEW DELHI: At a price almost 40% less than private developers, Delhi Development Authority’s offer to sell 5000 flats beginning Monday would mean a bonanza for the few who manage to get in.

Out of the 5,000 flats, 352 are three-bedroom flats, 889 two-bedroom ones, 3,231 one-bedroom and 286 expandable. In space-starved Delhi and amidst skyrocketing property prices, these flats will be available in areas like Vasant Kunj, Rohini, Dilshad Garden, Paschim Vihar, Motia Khan, Dwarka and Pitampura.

At a time when property prices and escalating EMIs have made the dream of owning a house in the capital a distant dream, these flats would cost anything between Rs 7.2 lakh and Rs 77 lakh.

According to DDA, 60% of these flats are new constructions. The rest include flats that were either allotted to the government and have now been vacated or the ones which have been surrendered owning to non-payment by the allottee.

There are also those which were under construction for some time.

There are 3,231 one-bedroom flats. The cheapest in this category is in Narela Sector 9A and carries a price tag of Rs 7.20 lakh while the costliest is in Dwarka’s Sector 18B and would cost around Rs 24.80 lakh.

DDA is expecting a big turnout this time considering that in 2006 when it had put up 3000 flats on sale, there were 1.90 lakh applications.

Of the 5,000 flats, 28% are reserved for various categories, including 17.5% for SCs, 7.5% for STs, 1% for war widows, another 1% for physically challenged and 1% for ex-servicemen.

Neemo Dhar, director, press and information, DDA, said, “Till date DDA has allotted 371215 flats of various categories under 42 schemes. On Monday it will throw open the application process which will continue till September 16. The DDA hopes to declare the result through a computerized draw of lots after three months from the last date of application”.

Among the areas where the flats are available are Shalimar Bagh, Jhilmil, Narela, East of Loni Road, Nand Nagri, Peeragarhi, Sarai Khalil, Lok Nayak Puram, Bindapur and Zafrabad. The size ranges from around 39.39 square meters plinth area in Rohini Sector 18 to about 158 square meters plinth area in Motia Khan.

Real estate observers said some people would get really lucky. The rates beign offered in Pitampura, Dwarka, Vasant Kunj and Rohini are almost 40% less than the market rate. The average rate per sq metre comes to around Rs 3000 while the market rate at which private developer sell at most of these places is around Rs 6000-7000.

According to DDA officials, the increase in cost of flats over 2006 when 3000 flats were sold is not more than 25%. DDA flats are cheap because there is no profit to be made.

In 2006, DDA had put up 3000 flats for sale in areas like Rohini and Dwarka and the costliest was around Rs 38 lakh in Dwarka. This time it’s Rs 77.80 lakh for a flat in Motia Khan. It’s because of its size and location.