Prices Of Pappan Kalan Flats Stagnate

The price movement in the secondary market in Pappan Kalan has been stagnant in the last few years due to over supply of flats, poor infrastructure facilities and negative publicity, according to the real estate consultant Jones Lang Lasalle.

The price of various types of flats ranged between Rs 7 lakh to Rs 12 lakh, in 1994, that has marginally increased to Rs 8 lakh to Rs 14 lakh this year.

In 1994, the premium charged was Rs 1 lakh that jumped to Rs 2 lakh in 1996 owing to the promises of speedy development then made by the developing agency_Delhi Development Authority (DDA).

 

Even after two years in 1998, the premium charged remained at Rs 2 lakh. As a result, the price movement in the primary market has also been demoralising with only a 10 per cent increase over the last five years as compared with 30 per cent in areas such as Noida and Gurgaon.

According to Rakesh Ralli of Ralli Estates, the reason for the depreciation in prices is "over supply of flats, poor development of Pappan Kalan and bad planning on the part of the authorities".

According to the initial plan, the Pappan Kalan project was to be completed in three years. However, even after seven years, the project is nowhere near completion.

According to the Narul Land Rule Act, development authorities can only collect 75 per cent of the total cost of the land initially. The remaining 25 per cent can be collected only after the authorities have developed the land.

However, In 1993, DDA, on a promise that it would develop Pappan Kalan in three years, got a ruling from the court that it could collect 100 per cent of the land cost.

"The place is still riddled with various problems. There is water connection, but no water flows and there is no electricity for 10 hours every day which increases our expenses in arranging our own supplies. Phone lines remain dead for 15 days of the month, there is no hospital or a doctor around 2 km radius and the approach road is congested and riddled with potholes," said Muralidharan Nair, secretary of a group housing society in Pappan Kalan.

"With over 5,500 hectares of land spread over 29 sectors and about 1 lakh dwelling units, Pappan Kalan is conceived as the largest satellite town. Development of such a huge area by only one agency (DDA) is a phenomenal task and even if they manage to pull it off, it will take time." said an official source.

However, local estate dealers maintain that within a couple of years all infrastructure facilities will be complete and the price of the properties will pick up.

The officials dismiss the controversy of Pappan Kalan being unsafe for habitation as it falls in the approach route of airplanes.

"Air crashes can happen anywhere. Sectors 8, 22 and 23 fall under the approach route of the planes and, therefore, not more than two-storey high buildings will be built in these sectors. Most of this area coming under the air route will be kept as a green belt" an official source said.

Lieutenant Governor Vijay Kapoor said recently, "All possible services holding up the development of Pappan Kalan are being speeded up and these will be operationalised very soon."