Haryana: Deen Dayal Jan Awas Yojana a win-win for builders and buyers

NEW DELHI: Affordable housing was always a popular choice among buyers but why developers have also got interested in this segment in Gurugram is an interesting story in itself. There is a reason behind this paradigm shift. A market where only an affluent could dare to purchase is now becoming a real estate hub for both affordable and mid-segment buyers as well.

The Haryana government’s Deen Dayal Jan Awas Yojana (DDJAY) encourages the development of high density plotted colonies in low and medium potential towns of the state wherein small plots are made available through a liberal policy framework. The most attractive feature of this scheme is its completion timelines. All housing projects projects are required to be necessarily completed within 7 years from the date of grant of licence.

To keep the housing costs affordable, the external development charges (EDC) for projects under the DDJAY are lower than standard projects. The development can take place only on 30 per cent of the total area of a designated residential sector under this policy. Aggregated area of the colony in this scheme is up to 15 acres where the first license would be for five acres or more and additional licence for a minimum of two acres. Developers can also construct four independent floors on each plot with the provision of stilt parking and lift.

This scheme seeks to solve the problem of unorganised colonies and providing affordable houses to one and all. It is not only helping a large number of migrants to buy a house in a city like Gurugram but also helping developers register business growth.

Developing one of his project under this scheme, Pradeep Aggarwal, founder & chairman, Signature Global, and Chairman, National Council on Affordable Housing, ASSOCHAM explains, “People nowadays want well-connected locations and fast ownership, and the turnaround time for plots and independent floors is much shorter than for housing societies and multi-story apartments, resulting in the popularity of independent floors.”

Many developers have launched mid-segment projects with options of independent floors having 2 and 3BHK units along the Dwarka Expressway and Gurugram. Such projects offer all amenities that one get in high-rise housing societies.

Benefits for property buyers

DDJAY comes under the Prime Minister Awas Yojana (PMAY) and has been approved under the Haryana government’s Consolidated Licensing Policy 2015. Under this scheme, the real estate developers can develop housing societies or colonies in 5 acres to 15 acres.

This scheme allows the prospective buyers to avail loan up to 75% of the property value on plots from all leading public and private banks. Also buyers can borrow up to 90% loan on builder floors and flats. The scheme makes funds easily available to buyers who wish to buy a plot, builder floors or flats. They can choose any options as per their requirements.

Varun Sharma, an IT professional in Gurugram, says, “I have recently gone to see projects being developed under the Deen Dayal Jan Awas Yojana at Dwarka Expressway and the best part is that social amenities and project development here take place simultaneously. Also the green space availability in such projects are also more and delivery is also as per the RERA deadlines as government authorities directly monitor these projects. So, I was more confident in making an investment under this scheme.”

Buyers can do a separate registry for each independent floor and bank loan is also available floor-wise. The allotment of units is allowed as per first-cum-first basis, so there is no draw system in this scheme. Many provisions of this policy ensure timely delivery and transparency. For example, only 50% of plots can be allotted before their development under the scheme. Rest 50% plots can be sold after completion of township or after obtaining the completion certificate from the Director Town and Country Planning of Haryana government.

Developers have to transfer 10% area of the licensed colony to the state government for the development and upkeep of community facilities. This ensures the development in the project and around it go on simultaneously. The state government supervises these projects and ensures the construction work takes place within a given time-frame.

Under this scheme, buyers have the option to buy flat, builder floors and plots to construct their own houses as per their requirements.