Ghaziabad Development Authority Adopts Private Sector Strategy to Sell Unsold Housing Inventory
The Ghaziabad Development Authority (GDA) is embarking on an innovative strategy to address a significant backlog of unsold housing units. In a move typically associated with private developers, the authority plans to employ professional real estate brokers and establish a dedicated marketing cell to sell off over 1,700 houses that have failed to attract buyers.
Details of the Unsold Housing Inventory
An official from the GDA revealed that there are precisely 1,748 dwelling units developed by the authority across at least five different housing schemes that remain unsold. These units include a variety of configurations such as 1, 2, and 3 BHK apartments, as well as mini Low Income Group (LIG) and standard LIG flats. Despite their availability, few potential buyers have shown interest, with prices reaching up to Rs 70 lakh per unit.
The primary objective of this new initiative is to realize over Rs 500 crore from the sale of these properties, injecting substantial funds into the authority's coffers and addressing the long-standing issue of vacant housing stock.
Broker-Led Sales Strategy with Customization Options
As part of this comprehensive strategy, the GDA will involve professional real estate brokers to actively reach out to potential buyers. These brokers will be granted significant flexibility to enhance the appeal of the properties. Specifically, they will have the liberty to add value through retrofitting based on the specific demands of homebuyers. Upon the successful registry of a property, the GDA will reimburse the costs associated with such refurbishments.
Furthermore, brokers will be permitted to integrate smaller flats into larger units to better customize the offerings according to buyer preferences, a feature designed to increase marketability and meet diverse housing needs.
Incentives and Marketing Support
To incentivize brokers, the GDA will provide remuneration equivalent to an additional 1% of the base price of the property upon successful sale. This commission structure is intended to motivate brokers to aggressively market the units.
In addition to external brokers, the authority will set up a dedicated marketing cell from within its existing workforce. This internal team will be responsible for entertaining prospective customers, conducting property viewings, and facilitating the sales process, ensuring a streamlined and professional approach to customer engagement.
Exclusions and Previous Government Initiatives
It is important to note that this new scheme will not apply to EWS (Economically Weaker Section) flats, which are specifically reserved for the economically disadvantaged segments of society and operate under different guidelines.
This move by the GDA follows a similar initiative launched by the Uttar Pradesh government in December of last year. The state government introduced the Model Costing Guidelines, a policy aimed at selling off unsold inventories. Under that scheme, the average price of properties decreased by approximately 25%, with discounts of up to 25% of the fixed or base price available. Additional features included tiered discounts for one-time payments made within specific timeframes: 6% if paid within 45 days, 5% within 60 days, and 4% within 90 days.
The GDA's adoption of a broker-led marketing strategy represents a significant shift towards more agile and market-responsive practices in public sector housing, potentially setting a precedent for other development authorities facing similar challenges with unsold properties.
