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Proposed DDJAY Scheme Amendments to Boost Realty Market of Gurgaon: Developers

Proposed DDJAY Scheme Amendments to Boost Realty Market of Gurgaon Developers

Real Estate Developers of Gurgaon are of the view that Haryana government’s decision to include more saleable areas under DDJAY will give a boost to the affordable segment in Gurgaon.

As per the recent announcement made by Haryana Chief Minister, Mr. Manohar Lal Khattar, the provision for freezing the land till grant of completion certificate will be reduced from 50% of the land to 20%.

Founder and chairman of Signature Global Group and chairman of Assocham National Council on Real Estate, Housing and Urban Development, Pradeep Aggarwal says ” The move will enable cash flow in the sector while giving more options to home buyers. A much awaited step that has come as a holi gift for buyers and developers”.

This amendment will free up earlier 30% frozen land for development and sale, enabling revenue generation.

As said by Santosh Agarwal, CFO and Executive Director at Alpha Corp, ” It will not only help existing players by giving them a leverage on revenue but also enable new players to get into DDJAY projects, as the viability gap, if any, decreases”.

He further stated that the current system of offering bank guarantee for securing the EDC/IDC payment should be done away with.

The new amendment will boost the already peaked market for independent floors in Gurgaon. The studies indicate that the share of independent floors rose to 74% among total housing units after the pandemic as the demand for larger living spaces increased.

JMD of MRG World, Rajat Goel says, ” reducing the percentage of land freeze will provide ease of operations, a much needed relief in the current challenging post pandemic scenario. The government initiative and presence of many builders will help to minimise illegal development”.

Owing to past land freeze restrictions, the developers found it difficult to sell the projects in the market.

 Ansal Housing director, Kushagr Ansal says, ” With 80% of land rights, they can easily attract customers and increase their funding before completion. It is going to work in the favor of market expansion”.