August 16, 2023: With more than 40,000 DDA flats lying vacant in the city, the Delhi Development Authority (DDA) has approached a private real estate consultancy firm to seek help in re-establishing itself in the housing market, according to media reports. This is the first time since its inception in 1957 that the DDA has taken this step.
The consultancy firm will be responsible for studying and assessing the data provided by the authority regarding the performance of its housing schemes, housing standards and pricing methods. The agency will share its findings in a report with the DDA, entailing recommendations that the authority can consider for implementation.
As stated in a report by ThePrint, the factors that led the authority to take this step include a below-par response from homebuyers to its regular housing schemes since 2014.
A regular DDA housing scheme involves certain pre-conditions for prospective homebuyers to be eligible to apply. The conditions include not being an existing owner of a house or plot in Delhi. Explaining the shortcomings highlighted by applicants who have surrendered DDA flats, a senior official said that flats in far-off areas such as Narela and Rohini, high price factor, lack of connectivity and quality and inadequate unit size have led to the gradual decline in popularity of DDA flats. The official said that the real estate market has changed, with homebuyers having more options from private players, as stated in the media report.
DDA flats type and location
In its latest housing scheme, the DDA offers flats across different categories such as Higher Income Group (HIG), Middle Income Group (MIG), Lower Income Group (LIG) and Janta flats. These flats are available in different configurations such as 1BHK, 2BHK, 3BHK, EWS and Janta flats. The houses are located across Delhi in areas such as Jasola, Dwarka, Narela, Lok Nayak Puram, Rohini and Siraspur.
DDA flats pricing
The DDA might try out the concept of dynamic pricing, such as fees for favoured locations, as stated in a Timesnownews report. At present, the DDA uses a standard costing technique based on land rates, plinth area rates and administrative costs. To adopt the dynamic pricing model, the authority is trying to minimise the various prices in areas with lower demand, such as Narela and Rohini.
DDA housing norms
A DDA official said that the authority will relax the housing norms based on the recommendations by the consultancy firm, stated the media report.
In the DDA’s latest ‘First-come-First-Serve Housing scheme’ launched in July 2023, the authority relaxed the pre-condition of not owning a flat or a plot in Delhi for the buyers. Over 1,500 of the 5,600 flats have been sold.
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