Delhi's Real Estate Market Set for a Major Boost with Key Reforms
New Delhi: In a significant move to streamline regulations and enhance investor confidence, the joint government-industry taskforce on real estate reforms has submitted a comprehensive report outlining key reforms for the sector in Delhi.
One of the key recommendations is a substantial reduction in amalgamation charges for integrated commercial schemes. Currently, these charges stand at 10% of the circle rates, which is seen as a major deterrent to development. The taskforce has suggested lowering this fee to just 1% of the circle rates.
Addressing the redevelopment of group housing, DDA housing, and cooperative societies, the report advocates allowing redevelopment by default, especially for buildings over 50 years old or those failing structural audits. It calls for relaxation in the current area norms that mandate a minimum of four hectares for group housing schemes to qualify for redevelopment.
Minister Manjinder Singh Sirsa highlighted that the taskforce has proposed several bold measures to enhance ease of doing business, encourage sustainable development, and promote faster project approvals. These reforms, he added, will create a more transparent, efficient, and investor-friendly environment, positioning Delhi as a leader in urban real estate development.
The government is expected to review the recommendations closely before initiating steps for implementation.
The taskforce includes key institutions such as the Municipal Corporation of Delhi, Delhi Development Authority, Delhi State Industrial and Infrastructure Development Corporation, Delhi Metro Rail Corporation, and the Confederation of Indian Industry. It suggests amending rules to allow additional members in cooperative societies if necessary and urges DDA to frame charges related to common areas.
Redevelopment should be permitted with 75% consent from stakeholders to ease the process. A fast-track approval process has been proposed for land amalgamation, with layouts to be approved by DDA's screening committee. Amalgamation charges will be collected during approval, streamlining the entire process through a single-window system.
The taskforce also suggests that the layout plan approval by MCD should not be mandatory for single plots unless there is a change in land usage. This move is expected to reduce unnecessary bureaucratic delays and simplify processes for individual plot owners.
To incentivize sustainable construction practices, the taskforce recommends granting additional ground coverage ranging from 1% to 4% for green building projects, along with up to 5% extra floor area ratio for certified green buildings. The green building certification by central government-recognized agencies will be mandatory for projects with built-up areas exceeding 2,000 square meters.
The taskforce also recommends revising the multiplication factor applied to circle rates to one for industrial properties and 1.5 for commercial ones while determining the reserve price for DDA auctions. To address the disparity between market and circle rates, the same factors should be applied for land valuation purposes related to stamp duty payments. This adjustment is expected to bring greater transparency and fairness to property transactions.
A senior official stated that the proposed reforms are aimed at unlocking the vast potential of Delhi's real estate market by cutting down procedural delays, reducing financial burdens, and encouraging sustainable development. They could significantly enhance the confidence of stakeholders, catalyzing growth in the city's real estate landscape.
