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Which property in Delhi gives the best return— DDA or Lal Dora?

Posted by HappyHomes on November 24, 2022

Any substantial investment with a good ROI attracts every investor, doesn’t it?

This applies to home investments as well. If you want to invest in a property in Delhi, then this article is for you. We have discussed everything about investing in a Lal Dora Property and a DDA Property. By the end of this 5-minute read article, you will have a better idea regarding which type of property you want to purchase.

Before Buying A Property In Delhi

There are a lot of things a home buyer considers before making a final decision to invest in a property. A significant part of this decision is influenced by the budget. However, there are other parameters influencing a purchase decision, such as the location of the property, convenience, amenities, complexes, and more.

As per a report from 99acres, the following areas are the five areas you may consider if you want to invest in a property in Delhi:

  • Neb Sarai
  • Chattarpur
  • Uttam Nagar
  • Dwarka Mor
  • Tilak Nagar

If you are an investor looking for better Returns on Investment (ROI) from residential properties in Delhi, then you must check out properties in these areas. Furthermore, there are many other factors to consider before investing in a home. For instance, would you like to invest in a DDA Property or a Lal Dora Property? Let’s understand what these mean.

What Are The Red Tape or Lal Dora Properties?

The name categorization of Red Tape Property or Lal Dora Property is attributed to the section of village property that traditionally incorporates village habitation. These land of property are utilized for storing farm produce and raising cattle. Initially, this zone was designed expressly for Delhi; it was eventually reproduced in several other states in North India. This includes Haryana and Punjab.

Back in the day, this was started by the British regime. They would draw a red, i.e., the lal line separating inhabited villages from the agricultural land adjacent to it. These Lal Dora areas are still marked on revenue maps of Delhi with a single plot number representing the old collective ownership.

Are You Aware Of The DDA Properties?

The Delhi Development Authority (DDA) has played an essential role in defining the national capital’s skyline. From DDA housing plans to land allotment, the agency has effectively managed Delhi’s increasing demand for housing, social infrastructure, and public utilities. There are many more benefits to owning a DDA flat. Check out the following:

  • Comparatively Cheaper
  • No Property Fraud
  • Minimal Society Charges
  • Other Expenses

Just like everything has pros and cons, the DDA Flats are also recorded to have some disadvantages. Some of those are listed here:

  • Absence of 24-hour water supply
  • There is no backup for power
  • Significant cleanliness issues
  • Deplorable property condition

Government Plans for Lal Dora Property

The residential sections of these “Lal Dora” properties were not included in Delhi’s first Master Plan, which was created in 1962. As a matter of fact, some of these properties are not thoroughly documented. The Indian government offers a Lal Dora certificate as an authentic property ownership document. Even though it is a valid and certified document of proof, changes need to be made. 

Thus, several state governments in India have set goals to declare their state ‘Lal Dora Free’ in the future. This will be accomplished by surveying the land in these communities and awarding property ownership documents to the generations of residents who have lived in these properties. However, now the Delhi Development Authority has chosen to incorporate the residents of urban and rural communities to create the Delhi 2041 Masterplan. Currently, here are some of the localities in Delhi that are known to offer Lal Dora Properties: 

  • West Delhi-

Areas such as Possangipur, Virendra Nagar, Parts of Uttam Nagar, Mahavir Enclave, and Asalatpur in West Delhi offer 1-BHK, 2-BHK, and 3-BHK apartments and independent floors offer some Lal Dora Properties.

  • South Delhi-

Lal Dora areas in South Delhi include Lado Sarai, Kishan Garh, Basant Gaon, Khirki, Munirka, Yusuf Sarai, Katwaria Sarai, Chhatarpur, Sant Nagar, Mehrauli Extended Abadi offer many 2-BHK and 3-BHK units, independent floors, bungalows and penthouse villas.

  • North Delhi-

The Lal Dora Properties in North Delhi record locations such as Netaji Subhash Vihar, Karkardooma, Navada, parts of Narela Village, Gopalpur, and some parts of Rohini. This location also offers much good quality 1-BHK, 2-BHK and 3-BHK units, independent flats.

  • East Delhi-

Dayanand Block in Shakarpur, Kotla Village, Khera Gaon, Kondli, Trilokpuri 1-BHK, 2-BHK, and 3-BHK units, also offer many Lal Dora Properties. However, these are primarily poor construction quality.

Lal Dora vs. DDA Properties: Which One Is Better?

The Lal Dora Properties offer so much to an investor. Talking about today or a decade down the line, these flats will only become more valuable with time. On the other hand, the DDA flats get quite under-maintained with time. Here are some of the things you get as an owner of a Lal Dora Property in Delhi:

  • Nominal Property Rates-

These properties come at a nominal rate compared to the other private properties in Delhi.

  • No Stringent Laws-

Owning a property in a Lal Dora region allows you to do further construction easily since there are no stringent laws. There is no need to have the building plan sanctioned for construction because it is free from rules under the Delhi Municipal Act.

  • Strategic Location-

These Lal Dora Properties are located near metro stations and business districts. This automatically adds charm to the value of a property. As discussed at the beginning of the article, location and connectivity are the most significant factors that boost the value of a 

  • Property Tax Exemption-

As per the property tax law of India, the lal dora property owners are exempted from paying the house tax on property. Post-independence, these regions were awarded relaxation from the house tax.

Crux Of The Matter

The next few decades will make the Lal Dora Property lands a great place to live and dwell. There are many advantages to these properties. If you are looking to invest in a property in Delhi, Lal Dora Flats are suitable investments. If you wish to get in touch with a realtor, then get in touch with HappyHomes today!

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