Why people are not buying DDA flats?

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Who doesn’t want to buy a home in the capital city of Delhi?

Despite this, thousands of flats of Delhi Development Authority i.e. DDA are lying vacant. People used to wait for years to buy the flats. There used to be long queues for participating in the draw conducted by DDA. Today these flats are only gathering dust. According to media reports, there are about 40 thousand such flats. Before we find out why DDA’s flats are lying vacant, let’s get cognizant with the status of DDA’s previous schemes.

Since 2014, home buyers have become cold towards DDA’s housing scheme. As a result, most of the flats went unsold in all the schemes that came in 2014, 2017, 2019 and 2021. The Hindu’ newspaper has reported that in the housing scheme that came in 2014, 25,040 flats were kept for sale. Out of which 12,270 flats could not be sold.

Similarly, in 2017, out of 12,617 flats, 9,286 flats were not sold. In the housing scheme launched in 2019, 17,922 flats were offered. Out of which 15,902 flats remained unsold.

In early 2021, DDA launched another scheme. It included 1,353 flats in areas like Jasola, Dwarka, Vasant Kunj, Rohini and Narela. The situation was such that home buyers kept a distance from 860 of these flats.

In December 2021, the authority launched a special housing scheme to sell 18,335 flats. It included flats in areas like Dwarka, Rohini, Narela and Jasola. Flats which were returned by allottees were also offered under this particular scheme. In this particular scheme 22,170 applications were received and 12,253 people had made payment.

DDA has rolled out the fourth phase of the scheme on ‘First Come First Serve’ basis from June 30, 2023… it has about 5,500 flats… old flats have been included in this scheme… the question is why are DDA’s flats not selling even though both houses and home buyers are present in the market? For this we spoke to Pradeep Mishra, founder of Homents.

Pradeep Mishra, founder of Homents, says that there are several reasons why people have lost interest in DDA’s flats. Earlier DDA’s flats used to be affordable but now the price is set according to market rate… despite being at market rate, DDA’s flats have fewer amenities compared to private builders’ flats. Due to location and connectivity issues people are hesitant to take these flats.

After the entry of private builders in Delhi, the competition has become quite tough. Size of private builders’ flats is bigger while most of DDA’s flats are old and smaller in size.

Most of DDA’s flats are in areas like Narela, Dwarka which are far from central Delhi. There is lack of basic infrastructure and public transport. Working people prefer to buy homes near their offices. Private builders are building flats in areas where facilities like transport and market along with other necessary things are nearby.

Having flats in far-flung areas is also a big issue for people in terms of security. Seeing the increasing instances of crime, people avoid buying homes in such places.

To attract home buyers, DDA has taken measures like building roads and improving basic infrastructure facilities. In addition to this, freedom has been given to citizens to book a flat of choice in a preferred area. Even those who already have a house or land in Delhi they or their family can apply for a flat. If you buy adjacent flats, you can join the two flats to increase the size of the house.Through all these facilities, DDA has made various efforts to increase the sale of its flats, but whether it will speed up the sale or not, only time will tell.