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Buying a Lal Dora land

Buying a  Lal Dora land




Economical rates: Property rates in the Lal Dora regions are comparatively cheaper than the authorized areas of Delhi due to the non-availability of social amenities such as parks and well-maintained roads which are present in authorized areas. Further, the transaction of such properties usually happens in cash. However, post demonetization, the government has forced owners of such properties to make transactions clean and transparent.

Strategic location: Properties in such areas have gained popularity due to their strategic location. For instance, builder floors in some parts of Uttam Nagar in West Delhi are constructed on Lal Dora land. The area is situated close to the Janakpuri Central Business District (CBD), and Uttam Nagar East, and Uttam Nagar West metro station owing to which, it magnetizes homebuyers as well as tenants looking for properties within a specified budget.

No stringent norms and regulations: Under the Delhi Municipal Act, Lal Dora land has been exempted from the building bye-laws and stringent construction norms and regulations. This implies means that there is no need to get the building sanction plan approved for construction on such lands. Further, according to the Delhi Master Plan, plots measuring more than 1,500 sq ft are permitted to be redeveloped into multi-story apartments which have attracted several small-scale developers to enter into agreements with owners of such lands. Due to this, the housing supply in such regions has surged over time.

No property tax: Owners of up to 200 sq m plots and houses on Lal Dora save 100 percent tax since such properties are exempted from property tax.

According to Rakesh Ahuja, a Delhi-based local broker from Capital Associates, “Properties in Lal Dora regions are newly built and economical as compared to the Delhi Development Authority (DDA) flats because of which homebuyers are preferring these properties.”

While there are several pros of owning a property in the Lal Dora region, one of the biggest disadvantages is that none of the banks or financial institutions give a home loan on such properties. However, one has the option to opt for a personal loan against such properties.


Future prospects

The future of the Lal Dora regions is expected to remain stable owing to the surge in the number of such property transactions and redevelopment projects. Moreover, such projects will continue to garner traction on the back of strategic location, proximity to landmark areas, and comparatively cheaper values than DDA apartments or builder floors/apartments.

However, a word of caution for homebuyers looking to invest in Lal Dora projects is that they must carefully check the property documents and the legality of ownership. Further, they must ascertain that the documents are complete, clean, the property has not been sold to multiple owners, and is not mortgaged.

 

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