Concerned over high inventory, DDA appoints real-estate consultant to improve sales

DDA has also tied up with real-estate consultant ANAROCK to suggest ways to maximise sales and clear inventory.

Nearly two months after launching its housing scheme, the Delhi Development Authority (DDA) has sold only 1,700 flats out of the 5,600 put up for sale. Officials aware of the matter said on August 24 that the DDA has now engaged a real-estate consultant to boost sales.

The authority launched its housing scheme on June 30 and 5,600 flats in the 1, 2 and 3 BHK categories were up for sale in Jasola, Rohini, Dwarka, Lok Nayak Puram, Narela and Siraspur areas of the national capital.

The 2BHK units offered in Dwarka were sold out within a few days but the authority is struggling to sell flats in far-flung areas, such as Narela, Lok Nayak Puram near Bakkarwala, and Siraspur.

The DDA has a total inventory of around 40,000 flats, including the 5,600 recent ones, in different parts of the city. According to officials, the authority has sought the help of real-estate consultant ANAROCK Group to improve sales and clear out the total inventory.

Subhasis Panda, DDA vice-chairman, said that the flats are being allotted on a ‘first come- first served’ basis.

Related stories

Ashish MIshra

Principal Correspondent|Moneycontrol

• 
  Greater Noida Authority forms nine-member committee to resolve builders-buyers issues
• 
  Proposal to raise threshold for affordable houses to Rs 75 lakh sent to finance ministry: Urban affa...
• 
  Yamuna Expressway Authority may acquire 1,200 hectares more for Noida airport expansion

“Dwarka flats are completely sold out and we are getting a good response in Rohini and other places as well. Some flats in far-flung areas are attracting a lesser number of buyers. We are getting into aggressive marketing to further improve sales. We are hopeful of getting a good response,” Panda told Moneycontrol.

Why a low response

Gaurav Singhal, a real-estate broker, said that the demand for DDA flats is high in areas which are better connected, such as Dwarka, Rohini, and Jasola. On the other hand, flats located in areas like Narela, Lok Nayak Puram and Siraspur are not much in demand.

“It is mainly because of the connectivity problem. People who buy flats in Narela or Lok Nayak Puram would find it hard to catch a metro or any other public transport easily as they are located in remote areas. One would take hours to reach the main city centre from there,” he said.

A senior DDA official said that the demand for flats in Narela, Lok Nayak Puram and Siraspur is not very good. This is why only 1,700 flats have been sold so far.

“There is one pocket in Narela, which is located far from the GT or the main highway. So, we are finding it hard to sell flats here. There is also a slum nearby, so buyers are not preferring it. The proposed metro corridor in Narela will take time to be built,” the official said.

Steps taken to boost sales

Panda said that apart from aggressive advertising, the Authority has also tied up with real-estate consultant ANAROCK to suggest ways to maximise sales and clear inventory.

“Anarock will conduct a study on the demand of the real-estate market for us and also understand the sentiments of buyers. They will suggest ways in which we can improve sales. They will study and prepare a report for us, based on demand and supply of the flats and other factors,” Panda said.

Santhosh Kumar, Vice Chairman, ANAROCK Group, said that they have been appointed as a consultant to provide a demand assessment, marketing strategy, and stakeholder perception to the DDA. “The objective is to help understand how this inventory can be positioned for a better response. We are confident that with the right information and strategy, the sales velocity of these units can improve significantly,” he said.