The Hindu Business Line : Realtors woo disappointed DDA applicants

New Delhi, Jan. 4 A just-concluded mega Delhi Development Authority (DDA) scheme has brought an unexpected upside for demand-starved real estate industry.

The eliminated applicants of the coveted scheme – that saw over five lakh aspirants slug it out for 5,200 flats – are now turning to private builders, particularly in Delhi NCR, to hunt for bargains. This has led to nearly 15-20 per cent spike in residential enquiries in the region, a sharp contrast to an otherwise sluggish housing market across India.

Realtors too are rushing to cash-in on this sudden windfall, with some announcing specific schemes to woo potential buyers who were not successful in the DDA housing scheme.

Schemes

While Supertech unveiled a limited period offer bundling discounts and goodies for buyers carrying DDA slips to its sales counters, Ashiana unleashed an ad campaign touting its “affordable” price tag (Rs 19.9 lakh onwards) to home in on disappointed applicants.

“Definitely a section of potential customers - who applied for DDA scheme but did not get the allotment - will spill into the private housing market. Even if one lakh of these potential buyers enter the space, it will be substantial,” said the Parsvnath Chairman, Mr Pradeep Jain.

Builders say the DDA scheme had caught the interest of even those who had been hesitant about realty purchases. “Now those who had applied but did not make it to the final list are hunting for value buys,” said one.

Mr Manu Goswami, Head of sales and marketing of JP Greens, claimed that enquiries are up by about 15 per cent. “Many of the potential buyers who are landing up at sales offices tell us that they had applied for DDA flats but did not get it,” he added.

Location issue

However, market watchers pointed out that while DDA products were priced at nearly half their market value – ranging from Rs 7 lakh to Rs 77 lakh, that too in Delhi’s prime locations – the “affordable” projects by private builders are spread all across the NCR, mostly in the outskirts of Delhi. The builders, on their part, are highlighting the amenities and features in their housing projects to catch the potential buyers’ eye.

According to Mr Dhiraj Jain, Director, Mahagun Group, the surge in enquiries has also coincided with sliding interest rates. “Consumers are looking for quality and add-on facilities such as power back ups, interior furnishing, clubs and swimming pools, besides cheaper price tags,” he said, pointing out that Mahagun has unveiled an offering in the Rs 22-lakh range in NCR.

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