Satyajit Rane, a businessman who came to Delhi five years ago, would have loved to settle in Gurgaon but high property values did not allow him. He wanted the benefit of being close to South Delhi and was highly impressed with a 3BHK house on sale in Aaya Nagar, near Gurgaon, priced attractively at Rs 60 lakh.
The benefit of an operational metro station situated at Arjangarh, abundant water supply, electricity and proximity to business centres added to the benefits of the area. Looks like a good deal? But as a buyer, what should you be cautious of?
In the last few months, trends indicate that in the absence of a defined affordable housing market in Delhi, relatively cost competitive markets such as Uttam Nagar, Ghitorni, Pandav Nagar, Aaya Nagar and Mehrauli have gained significantly. However, some parts of these areas are unauthorised. Be it for rental returns or for end use, buyers are enthusiastic about affordably priced, conveniently positioned homes throughout Delhi.
Take the case of Aaya Nagar. Power of attorney is banned and banks refrain from giving home loans in some cases. But for those who have already bought here, the strategic location with respect to Gurgaon helps in gathering sizeable rental yields. Keshav Srikant, broker at South Delhi Properties says, “Most buyers in this area are not permanent residents. They buy a house to earn rental income and for a Delhi pincode and then lease them. Rents are in the range of Rs 3,500-12,000 monthly and for single professionals, this is easy on the pocket.”
If you are a buyer, your research should help you identify areas that are still subject to further authentication. The department of Urban Development has released a list of 895 such colonies which are in talks for further regularisation. As per the government’s official statement, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved amendment to the existing guidelines that enables regularisation of all unauthorised colonies that have come up till June 1, 2014, namely extension of the cut-off date for regularisation from March 31, 2002 to June 1, 2014.”
What does this mean? With regularisation, a large number of residents of such localities will benefit. Planned construction under existing bye-laws and applicable rules will lead to the methodical development of such areas.
Punya Vij, a local consultant says, “Construction activity has gathered speed in Aaya Nagar. There is provision for electricity by the government, but not as per standards. There is no sewage system in the settlement. But investors eye 1 or 2BHK units because it looks promising from a long term perspective. End-users are actively looking too.”
In most of such unauthorised colonies, there are tenements shared by low-income residents to builder apartments. As a buyer you would need to be clear on whether the construction is legal. As in the case of Pandav Nagar, there are certain housing areas that have legal constructions.
With the regularisation on the cards, these affordably-priced homes may soon become safe to invest in.
Sneha is a real estate market research enthusiast and is currently part of the editorial team of Times of India’s property wing- Magicbricks
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