Should You Consider DDA L-Zone For Investment?
Updated on June 19, 2017
Lieutenant Governor of Delhi Anil Baijal has approved a notification to declare 95 villages as development areas of the Delhi Development Authority (DDA) under the land pooling policy. The nod means approval for 30 villages to be included in the DDA L-Zone.
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Initially, investors were seen betting big on emerging real estate hubs in the national capital. However, their zest subsided by and by as with many such projects hit bureaucratic hurdles. The development of the L-zone can be cited as one such example.
What is the L-zone?
The Delhi Development Authority (DDA) has earmarked seven land pooling policy (LLP) zones for urban development. These seven zones are J, K-I, K-II, L, N, P-I, P-II. The policy was notified in 2013, and 95 villages fall into these zones. Out of these, the L zone is the largest, spreading over an area of 22,000 hectares and located in South West Delhi.
While the authority hasn't transferred land titles to any party or even notified the zones, several developers have already announced pre-launch of their projects.
The current status
With the Real Estate (Regulation & Development) Act, 2016, in final stages of implementation, developers who had taken the payment from the buyers who booked land in L-zone have to provide title agreement copy to the owners. No mechanism has been set yet by the state government to execute the LPP. In this case, no projects or housing society can get registered with the real estate regulator. Moreover, the Real Estate Act has set guidelines on model agreement to be signed between a developer and a home buyer. However, most of the buyers have been given kacha receipts instead of proper sale deed or agreement.
What makes the L-zone attractive?
Located strategically close to Gurgaon, the Delhi airport and Dwarka, the L-zone is cashing in on the benefit of being nestled among the top housing hubs. While Dwarka offers properties in the price range of Rs 8,000-10,000 sq ft, multi-storey apartments are being offered near Najafgarh for Rs 3,000-5,000 sq ft. While the risk associated with these projects are high and most of them are illegal, home buyers are still falling into traps of fraudsters mushrooming in the area.
The likely risks of investing in DDA L Zone
- The Delhi government has not yet enacted the land pooling policy, though approved and notified by the Centre.
- The area lacks basic infrastructure and would take an enormous amount of time to be habitable.
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