DDA Unveils Reforms to Revitalize Delhi's Commercial Real Estate and Launches Housing Scheme 2025
The Delhi Development Authority (DDA) has approved a series of reforms aimed at revitalizing the capital’s commercial real estate sector and attracting large-scale investments into the city. These reforms are expected to align property valuations with market rates and make Delhi more competitive within the National Capital Region (NCR). The DDA has also cleared the launch of the Housing Scheme 2025, offering 177 residential flats to middle and lower-income groups through e-auction.
These units will be located in prime areas such as Vasant Kunj, Dwarka, Rohini, Pitampura, Jasola, Ashoka Pahari, and others. These decisions were taken in a DDA meeting chaired by Lieutenant Governor V K Saxena on July 11.
The authority has drastically reduced amalgamation charges for commercial properties, from the existing 10% of the circle rate to just 1%. This move is aimed at exploiting underutilized commercial plots, making them financially viable for developers to consolidate land and undertake large-scale projects. According to the DDA, high amalgamation costs were among the biggest deterrents for developers in Delhi. This decision is expected to trigger a new wave of commercial development in the capital.
This change aims to align DDA’s property valuation more closely with market realities and make Delhi more competitive within the NCR. For years, developers have pointed to the stark difference in regulatory costs between Delhi and its neighboring cities as a key reason for shifting projects. The high amalgamation charges for commercial properties in Delhi were prohibitive and discouraged developers from consolidating plots and undertaking large-scale projects. This led to underutilization of prime commercial areas, delayed infrastructure development, and missed opportunities for urban mobility and redevelopment.
The DDA also approved the premium Housing Scheme 2025, offering 177 residential HIG, MIG, LIG flats, and 67 car/scooter garages via e-auction at prime locations. These decisions emanate from the recommendations of a high-level joint government-industry task force constituted by LG, VK Saxena. The task force observed that higher amalgamation charges and multiplication factors on the circle rates with regards to commercial plots led to great disparity and created a bottleneck in property transactions as developers were discouraged from proceeding due to the financial implications.
The task force had noted that Delhi’s circle rates are disproportionately high compared to market rates in neighboring cities, and a high multiplication factor is restricting the opportunities available for investors, resulting in greater investments in other cities of the NCR. The Authority also approved changes in land use in various sectors of Narela to help in creating an education hub, development of a multi-sports integrated stadium and sports complex, and overall development of the sub-city.
In addition to this, the Authority approved a discount on bulk purchase of unsold flats in Narela by government departments and universities. This move is expected to boost the housing market in Narela and provide additional housing options for government employees and students.
