DDA Housing Scheme Flats: Do they really become 'realty' for buyers?

Expected to be the largest ever housing lottery in Delhi with 25,000 homes on stake, DDA housing scheme 2014 is creating a buzz in the city with almost every Delhi'ite marking his calendar red for August 25 (the expected date for the launch).

Yes, these housing schemes are the only option for people for whom buying a home in Delhi is a distant dream due to the ever rising property prices in the city. But, still you can't deny the fact that these schemes don't come with a spoon of sugar. DDA's history is filled with controversies, delays and land issues. So, are these draws really worth your hard earned money? Let's explore it together.

Photo Credit: ddahousingscheme.com

What happened in the past? Starting from 1967, DDA has announced 44 schemes till date majorly targeting homes for the low income and EWS categories. Some among them caused a huge uproar in the city with the latest one being the Rohini Residential Scheme which was announced in 1981, but around 750 applicants got their allotment this very year in August. Media was abuzz with reports that many of the contenders have even passed away in the waiting process. The answer from the officials for the delay was the lack of land in Rohini. As a lot of booking cash was stuck, applicants kept on asking as to why it was launched and why weren't they informed if there was an issue.

Allotment is an issue with the 2010 draw as well. Majority of the winners of 2010 lottery hasn't been allotted homes till now. The apartments are ready in this case but are lying vacant without electricity and water connections. The lucky ones who got their flats (allotted in 2013) are happy with the appreciation their homes have got in the meantime, but are unsatisfied with the construction quality. The majority of the apartments are suffering from lack of drainage and sanitation mechanism, lift issues, poor home fittings etc. 2008 draw also drew a lot of attention as it was reported that mafia's used forged documents to prove their authority on the homes.

What is up on offer in the 2014 DDA housing scheme? This year 25,000 homes are up for grabs and are located in areas like Rohini, Narela and Dwarka. They are priced from 22 lakhs to 1 crore and are distributed under LIG, MIG and HIG categories. LIG flats are priced between 22 to 25 lakhs with MIG at 45 to 55 lakhs while HIG would be sold between 90 lakhs to 1 crore. Apart from this, 700 EWS flats are also up on offer, to be sold at a price of just 6 lakhs. Apart from this, DDA has reduced the registration fee from 1.5 lakh in 2010 to 1 lakh, this year.

These apartments are green (fly ash used in construction) and come equipped with rain water harvesting systems. In addition, a corpus fund (300 crore) would also be created this time which would fund the lifetime maintenance of the flats.

There is a catch this year!! This scheme is not for investors who are looking to earn quick bucks if they get lucky. Apart from 80 percent reservation for Delhi residents, DDA has introduced 5 year lock in period. According to this, the winners would get allotment and possession letters after the draw but the conveyance deed would be presented only after 5 years. Only this deed would entitle the property to get the freehold status and then only it could be sold.

For end users, this would not be an issue.

Should you go for it? The affordability of DDA flats is something that lures each and every homebuyer as they are offered way below the market price. You would also be keeping your fingers crossed but before going for them you should keep in mind that delays are common with DDA and the cash deposited by you for possession might get stuck. Moreover, you should be prepared that the property could not be sold for five years after the draw. In addition to this, it is advisable that you keep some cash handy to retune the décor of the allotted apartment.

Keep coming back here to check the latest stories on DDA housing schemes.