These days, the Lal Dora areas have become an attractive investment hotspot because of the low property rates in comparison to rest of the city, but real estate experts caution home buyers of the risk of eviction and demolition and poor infrastructure in these areas. Before we proceed further, let us first find out what Lal Dora land actually is.
What is Lal Dora land?
"The term Lal Dora first used in the year 1908 – to define village land or “Abadi” (habitation). Ideally, it is an extension of the existing villages, which can be used by the villagers for keeping livestock and for other types of living support systems."
In early days, to differentiate such lands from the agricultural land, the land revenue department used to tie a red thread (Lal Dora) around the village extension land for demarking the jurisdiction of a village. Lal Dora land is exempted from municipality rules and regulations. However, in this area, one can construct residential as well as commercial space with some approval.
Why demand of Lal Dora land does not die down?
1. Low Cost - Lower rates of the property is the biggest factor behind that. There could be a difference of 100 % in property prices when you compare a Lal Dora property with an average property in the locality of Delhi. To buy a 3BHK apartment in a housing society of Defence colony, for example, a home buyer must spend as much as Rs 7 Crore. But in the same amount, a home buyer can buy an independent house built on a Lal Dora land. A buyer saves on other expenses, too. For instance, you do not have to pay any house tax if the unit is built on less than 200 square meters of the plot.
“The property rates are lower here as compared to the authorized localities of Delhi. It is because of the absence of amenities like electricity, well-maintained wide roads, central park, etc., which is easily available in authorized localities.,” explains Mr.Rajeev Ranjan, Sales Head, Clicbrics.
2. Connectivity to important locations - Lal Dora properties have also become popular because of the great connectivity that they offer. For example, Possangipur in south-west Delhi is near to the West Janakpuri Metro station and business district. Those who are working in nearby commercial areas, prefer to take a house on rent in this Abadi. Hence, the area has seen a demand among investors.
3. Change in regulation - As per Delhi’s Master Plan, in case of plots over 1,500 sq. m. are allowed to be constructed into multi-story flats/apartments. This has lured many small realty developers, to enter into development agreements with landowners. Therefore, new supply has come up in these areas.
Since the Lal Dora land does not fall under the jurisdiction of municipal bodies, these areas are often under-developed. It is difficult to sell such properties because of the absence of clear land titles. This is the reason why banks do not fund such lands. Unclear titles of any property face the obvious risks of eviction and demolition.
The issue of Lal Dora properties is one that has been simmering for long enough and has come to a head now largely because the jurisdiction of municipal authorities like DDA, MCD and NDMC is not applicable in these areas. On the infrastructure front, roads or sewerage, water, electricity, sanitation everything has become a constant problem. This is why Clicbrics experts caution home buyers to not buy such properties as it is a lucrative but a high-risk investment.