The pros and cons of buying a property in Delhi’s Lal Dora regions

[ecis2016.org] On account of low rates, Lal Dora or land locked regions in Delhi, have been attracting prospective buyers who are looking for good connectivity and an address in Delhi. We examine the factors to consider, when investing in such locations

Rashu Sinha, a senior level marketing professional working in New Delhi, recently bought a two-bedroom apartment. The uniqueness of Sinha’s property is in the fact that his apartment is not part of a newly-built group housing project in one of Delhi’s satellite cities, but is a part of a redevelopment project in an unauthorised locality of New Delhi. Nevertheless, Sinha says he is lucky to have the apartment, which is close to the metro station.

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Delhi has a number of land-locked villages, which are categorised as ‘Lal Dora abadi’. These are unique, as the properties sold in these regions cannot be registered. Instead, the Delhi government issues a ‘Lal Dora Certificate’ that proves the ownership of the property in the abadi. Based on this certificate, owners can apply for water and power connection in the village.

There are more than 300 such abadis in Delhi. “It is this ease and the lure of having an address in Delhi that is now driving a number of property buyers to Lal Dora land regions in Delhi,” says south Delhi-based property consultant, Manish Gupta.

Advantages of buying a property in Lal Dora regions

Low rates: “The property rates are lower, compared to the authorised areas of Delhi. The lower rates can be attributed to the absence of amenities like a central park, well-maintained wide roads, etc., which exist in authorised localities. Moreover, property owners who used to sell independent floors and built up properties through a mix of cash and unaccounted money, have now been forced to make the transactions clean, after demonetisation,” explains Sinha.

Proximity to important locations: These areas have also become popular, owing to the locational advantages that they offer.

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Take, for example, the case of Possangipur, a well-known abadi area in south-west Delhi. The area is close to the business district and the west Janakpuri Metro station. People working in nearby commercial areas, prefer to take a dwelling on rent in this abadi. Hence, the area has seen a spurt in transactions, due to these factors.

Change in regulation: As per Delhi’s Master Plan, plots of over 1,500 sq ft are allowed to be redeveloped into multi-storey apartments. This has lured a number of small developers, to enter into development agreements with land owners. Thus, new supply has come up in these regions. Praveen Sharma, a broker operating in Janakpuri, explains how “Buyers prefer these newly-built properties, instead of the old DDA constructions, which are costlier.”

What is on offer in Lal Dora regions?

Most of these regions offer either built-up properties or independent floors. In developed villages, you will also find redevelopment housing projects built on a smaller area.

For example, Mahavir Enclave Part 1 or Ganesh Nagar near Dwarka, offer such new constructions. In general, the price ranges from Rs 12 lakhs for a one-bedroom apartment to as high as Rs 70 lakhs for a three-bedroom apartment/independent floor.

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Important localities in the abadi category

The above table is indicative and not a holistic representation

Future prospects of Lal Dora regions

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With an increasing number of transactions and redevelopment projects, the future of Lal Dora areas in Delhi is likely to remain stable. “Lal Dora land parcels will continue to hold ground, on account of their proximity to important locations, the address of Delhi and lower rates than usual DDA apartments,” says property consultant Pradeep Mishra.

However, buyers who are planning to invest in Lal Dora land or project, should check the authenticity of property documents and the legality of ownership. If the property documents are clean and have not been sold to multiple owners, or the property is not mortgaged, you can go ahead with your investment.

Disadvantages of buying a property in Lal Dora regions

No regulations: Since the Authority has no jurisdiction over this land, people tend to expand their houses illegally, whenever and wherever they want. The lack of planning makes this area difficult to live in.

Crowded and badly managed: Since city master plans do not cover these areas, such localities usually have ramshackle buildings, narrow lanes and low hanging electricity wires with unclean pathways. These areas are often neglected by the government and are dominated by the private builders and property dealers, as they acquire old buildings and construct builder floors to rent out.

Poor amenities: Since these areas are not included in the master plan, the authorities rarely pick up garbage. Water supply shortage during summers, and waterlogging and sewage overflow during the monsoon, are some of the common problems here.

Pros and cons of buying a land in Lal Dora regions

(With inputs from Surbhi Gupta)

Source: https://ecis2016.org/.
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Source: https://ecis2016.org
Category: Lifestyle