Should you invest in HUDA’s affordable housing scheme?

Kriti Sehgal, a 36 year old resident of Gurgaon, wants to opt for an affordable property and wonders as to which of the many HUDA schemes that invite private developers to unveil their affordably priced homes for sale, would work for her. Priced attractively at Rs 15-22 lakh, what are the nitty gritties? Here’s a look-

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Trend watchers say that the overwhelming response led to most flats in relatively better locations finding a number of buyers. Ashish Gupta, a financial and realty consultant based in Delhi says, “There was a positive response from many, mostly end-users. However, there were locations where the dates had to be extended because there weren’t enough buyers. This happened because of the location of the house and not because of the merit of the developer.”

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“In a majority of locations, 2BHK units were the most sought after although there were 50-50 per cent units of each,” informs Ashish.

The actual ‘affordable’

Vinod Gulati, a broker with Nand Kishore Realty says, “The best part about the scheme is that it keeps out the larger privileged class. Moreover, some of the projects are strategically located and the price advantage is immense.”

“In Gurgaon Sector-81, one of the realtors has launched his affordable housing project very close to one of the biggest realty players. While the premium projects just across the road are priced at Rs 8,500-9,000 per sq ft, the affordable housing scheme is giving the benefit of the same neighbourhood in less than half the price at Rs 3,500-4,000 per sq ft,” informs Gulati.

Gupta also highlights this benefit. What is the basic difference? “While there are plastic paints, more lifts per block and luxury amenities in the premium projects, there would be distemper, lesser number of lifts per block and a not so spacious house. But the distinction between the quality of living that private developers glorify and the premium that such amenities command, is no longer there.”

However, while 95 per cent of these properties are open to public, your decision to invest in them must be backed by whether or not you want to invest in smaller units. Sizes of most of these flats are 300-650 sq ft. Also, remember that there is a lock-in period of five years. The possession of these flats would only be in 2018 and there is a one year cap.

Magicbricks reached out to some brokers to know the future of areas where these projects did not find enough takers and as a result, the dates had to be extended. Ashish Vidyarthi of Delhi Properties says, “Location was the problem. But it is important to note that where 800 or more flats are on sale and settlers do come in, social infrastructure, commercialisation is bound to come up in near future.”

Like Sehgal, if you too are planning an affordable property such as this, there are certain criterions that you need to keep in mind-

    The scheme necessarily demands that the applicant or his/her spouse, dependent children shouldn’t own any flat/plot in any of the HUDA developed sectors, urban areas in Haryana, UT of Chandigarh and NCT Delhi.
    An applicant can make only one application and a successful applicant cannot be eligible for allotment of any other flat under this policy. In case he is successful in any of the other colonies, he would have to retain only one.

If you are looking at these flats from an investment point of view, list your requirements to tally whether or not this is suited for you. Have any other questions? Ask Magicbricks on our Q&A forum, Open House

Source:http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/should-you-invest-in-hudas-affordable-housing-scheme/80024.html