ALL YOU NEED TO KNOW ABOUT PROPERTIES IN "LAL DORA" AREAS

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If you thinking of buying a property in a Lal Dora area, you need to go through this article!!

The term ‘Lal Dora’ came into existence in 1908 during the British rule. It was used to classify that portion of the village land which is part of the village ‘abadi’ (habitation). Such lands are supposed to be used for the non-agricultural purpose only and are exempted from the provisions building bye-laws. 

While the term ‘Lal Dora’ is used for both rural and urban villages, the fine dividing line has disappeared over the years. Several villages in Delhi such as Yusuf Sarai, Munirka, Chhatarpur, Mahipalpur, Sant Nagar, Kanjhawla, Mehrauli and Shahpur Jat, etc. have been engrossed into the developed city limits, and today, they constitute a part of the prominent elite areas.

Pros of buying a property in Lal Dora area

Economical rates: Property rates in Lal Dora areas are comparatively cheaper than the authorised areas of Delhi due to non-availability of social amenities such as parks and well-maintained roads which are present in authorised areas. Further, the transaction of such properties usually happens in cash. However, post demonetisation, the government has forced owners of such properties to make transactions clean and transparent.

Strategic location: Properties in such areas have gained popularity due to their strategic location. For instance, builder floors in some parts of Uttam Nagar in West Delhi are constructed on Lal Dora land. The area is situated close to the Janakpuri Central Business District (CBD), and Uttam Nagar East and Uttam Nagar West metro station owing to which, it magnetises homebuyers as well as tenants looking for properties within a specified budget.

No stringent norms and regulations: Under the Delhi Municipal Act, Lal Dora land has been exempted from the building bye-laws and stringent construction norms and regulations. This implies means that there is no need to get the building sanction plan approved for construction on such lands. Further, according to the Delhi Master Plan, plots measuring more than 1,500 sq ft are permitted to be redeveloped into multi-storey apartments which have attracted several small-scale developers to enter into agreements with owners of such lands. Due to this, the housing supply in such regions has surged over time.

No property tax: Owners of up to 200 sq m plots and houses on Lal Dora save 100 percent tax since such properties are exempted from property tax.

While there are several pros of owning a property in Lal Dora region, one of the biggest disadvantages is that none of the banks or financial institutions give a home loan on such properties.

Future prospects

The future of Lal Dora regions is expected to remain stable owing to the surge in the number of such property transactions and redevelopment projects. Moreover, such projects will continue to garner traction on the back of strategic location, proximity to landmark areas and comparatively cheaper values than DDA apartments or builder floors/apartments.

However, a word of caution for homebuyers looking to invest in Lal Dora projects is that they must carefully check the property documents and the legality of ownership. Further, they must ascertain that the documents are complete, clean, the property has not been sold to multiple owners and is not mortgaged.

 


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