DDA scheme brings home prices down

DDA housing scheme is has come a boon for aspiring home buyers as it has forced even small developers in the National Capital Region (NCR) to dole out hefty discounts and freebies like cars, LCD TVs and international holiday packages to woo buyers.

The DDA housing scheme 2010 has a total of 18,235 flats on offer, right from one-bedroom- hall-kitchen (BHK) to four-BHK.

Many banks are already financing the bookings and the response from the buyers has also been quite positive. The DDA officials plan to sell as many as 25 lakh forms this year.The catch here is the number of flats on offer, which is almost three times the total number of flats that were offered by DDA’s in 2008. However, this apparent advantage for buyers is proving to be a hurdle for the private developers, especially the small ones.

“Home sales had already dropped in past sixth months. Now, the DDA scheme has proved to be another dampener. Most of the potential buyers in the market have applied for it and they are not looking for other options till the results are out,” a property dealer in Dwarka told MAIL TODAY .

“As the whole lottery system of DDA will take at least three to four months, buyers are holding onto their plans. That is why   some developers are going for discounts and freebies, especially in the Noida, Noida extension and Faridabad region,” he added. One developer, Supertech, which had started the Rs 10 lakhflat scheme, is now offering a free car with every booking in the EcoVillage, Noida Extension.

The developer is offering an Alto car with flat sizes between 795 sq ft and 1275 sq ft; a Zen with 1340 sq ft and 1595 sq ft and a Swift with flat sizes of 1750 sq ft to 2275 sq ft area at EcoVillage. Similarly, another developer, RG Builder, is offering a lucky draw with every booking of its luxury  apartments, where any buyer stands to win a car or a bike.

Rishab Developers of Indirapuram is offering discounts up to 15 per cent for its two- BHK flats. Ferrous heights, in Faridabad, have come up with a new scheme where buyers are not required to pay EMI till they get possession of the house.

The buyers have to pay 15 per cent of the home price at the time of booking. Many other small developers are offering LCDs and free holiday coupons with new bookings.Developers said this is not just because of the DDA housing scheme but the stiff competition among the NCR developers. The situation is little different in the Capital.

Even as home sales figures are not very encouraging, brokers are holding onto the prevailing rate rather than resorting to any discount or freebies.

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