Regularized Colonies and Lal Dora

When we are buying a budget property there are limited options either in regularized colonies or lal dora areas because property in approved areas are very high in prices. As they have to follow rules of government authorities that means they can cover a pre defined area in the plot as per government rules and price of land is also very high in these areas. But in Regularized colonies and Lal Dora there is no such restrictions. That Doesn’t mean that these are illegal Constructions.

The only Difference is that the builder is not required to get the building plans approved from the government authorities such as MCD etc… But He has to keep some points in mind that the height of the building should not be more then the permissible limit which is 17 Mtrs. from the road and he can build only 4 floors on a plot with parking. ie. Parking + 4 floors on a plot. If you find a building following these rules and have registry document (Not GPA). Then this property is good to buy.

The main advantages of buying property in Regularized Colonies and Lal Dora are :

  1. COST EFFECTIVE : These properties are cheap in price as compared to approved areas.
  2. LESS LOADING : Loading means difference between super Area (Plot Area) and Carpet Area (Actual usable area). Generally the loading is very low 10% – 15% in regularized colonies and Lal Dora as compared to approved areas somewhere around 20% – 33%.
  3. LOCAL MARKETS: You can find local markets in regularized colonies and Lal Dora just on your own street where as approved areas have a pre defined marker places by the government.
  4. REGISTRY VALUE : Registry value of approved areas is a bit high as compared to regularized colony or Lal Dora.
  5. NO HOUSE TAX : There is no house tax on properties in Lal Dora Areas.

So , if you have deep pockets you can always go for approved areas. But if there is a budget constrain then go for Regularized colonies or Lal Dora areas as long as they have registry documents and loan facility. They might have loan from NBFC (NON BANKING FINANCIAL COMPANY) don’t worry these are governed by National Housing Board under RBI.

So, Don’t worry next time when somebody suggest you that these properties are not safe…. Ignore Him. As these are completely safe properties to Buy and Invest.

40 thoughts on “Regularized Colonies and Lal Dora

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