GMADA sets new trend: Housing only for end-users

The urban body had called for applications for only 4,500 flats since it was contemplating that the rest of the flats would be auctioned. Senior officials say that there is now a likelihood that all the 6,300 apartments may be allotted to the applicants after draw of lots,which makes it a case of almost assured allotment. The scheme provides for two-bedroom,three-bedroom and four-bedroom freehold flats.

“Because of the five-year lock-in clause,we will achieve our goal of providing housing to genuine applicants. We did not want to become a source of profit-making for speculative investors who book a house in the government sector only to make handsome profits by selling it off after taking possession. This scheme can be a model for government housing and in future we may tailor all our housing schemes for end-users,” said a senior GMADA official.

The reason for the low demand is the five-year lock-in clause introduced by GMADA,which kept away speculative investors. GMADA has specified that there shall be a bar on sale of the apartments till two years after handing over of possession,or five years from date of issuance of Letter of Intent (LOI),whichever is earlier. GMADA had also specified in the brochure that Purab Premium Apartments are available through “bank finance and a three-year lock-in period on sale after possession,so that need stands a better chance than greed”. Possession will be handed over in 36 months from the date of the draw,which is likely to be held in March.

The scheme opened on December 12 and was initially scheduled to close on January 12. It was later extended to January 21. By keeping away speculative investors,GMADA has ensured that allotment will be made only to end-users who are seeking premier accommodation in the Tricity at affordable rates.

The GMADA official said that almost 80 per cent of the price of these flats is the cost of construction and land acquisition. In the Purab Premium Apartments scheme,there are 900 two-bedroom flats priced at Rs 37 lakh; 1,800 three-bedroom flats at Rs 55 lakh and 1,800 four-bedroom flats at Rs 69 lakh. In addition to the multi-storey towers for flats,Sector 88 will also provide for upmarket sports infrastructure,commercial and entertainment space.