HindustanTimes Thu,18 Dec 2014

Buying DDA flat? You can’t sell it for 5 years

Sidhartha Roy, Hindustan Times  New Delhi, July 26, 2014
First Published: 00:15 IST(26/7/2014) | Last Updated: 00:18 IST(26/7/2014)

If you are looking forward to Delhi Development Authority’s (DDA) upcoming housing scheme 2014 as a good investment opportunity, you could be disappointed.

The DDA is planning to introduce a clause that says flat allottees would be given ownership only after five years of possession, thereby barring sale of the properties before the five-year period.

For most Delhiites, DDA’s housing schemes are the only opportunity of getting a house in the Capital at affordable rates, since the agency builds the flats at a ‘no profit no loss’ basis.

The schemes, however, also attract many who invest in the flats and sell them at market rates, many times within days of getting possession.

“We are taking strict precaution to discourage any speculative investment in these flats. Allottees would be handed over conveyance deeds only after five years,” DDA vice-chairman Balvinder Kumar told HT. “We will just give them a certificate of allotment to help them get a home loan,” he said.

“This will ensure they wouldn’t be able to sell off the flats at least for five years, and only genuine people — who actually want to live in these flats  — will get them,” Kumar added.

The new clause will ensure that there is no incentive for property dealers and brokers to speculate on the DDA property anymore, Kumar said.

In addition to the clause, DDA has also decided to carry out regular checks to ensure only allottees are living in the flats. “If, at any stage, we get to know through inspections that someone else is living in the flat, we will immediately cancel the allotment,” Kumar said.

DDA is expected to launch the housing scheme in mid-August and around 26,000 flats are on offer.

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