The Boom of Basement Economy in Delhi: A Growing Phenomenon
A combination of factors has led to a booming basement economy in the national capital, with basement offices, gyms, cloud kitchens, and libraries sprouting up across the city.
Basement EconomyDelhiReal EstateProfessionalsRegulationsReal EstateAug 04, 2024
This is not an isolated incident. Delhi’s ubiquitous basement offices — often in upscale residential neighborhoods — are some of the most sought-after real estate spaces for professionals. From young advocates to senior lawyers, doctors to chartered accountants, the basement office is a preferred choice, despite the lack of sunshine and cell phone network.
The Unified Building Bye-Laws, 1983, and the Master Plan Delhi, govern the regulatory landscape for basements. These bye-laws prescribe what activities are allowed in Delhi’s colonies and whether they are designated for residential, commercial, or mixed use. In category A and B colonies, only ‘professional activities’ are allowed in residences.
However, a combination of factors — from how land-use regulations are framed to skyrocketing costs for a piece of the city’s land — have allowed for a booming basement economy to take shape in the national capital. These basement spaces have come under scrutiny given the torrential rains this season and the incident in Rajinder Nagar, where three students of a coaching centre lost their lives when they were trapped in the flooded basement library of the building.
In a small, dimly lit basement in Kalkaji, several pool tables of varying sizes stand scattered across the room. The pool hall is empty except for a lone caretaker wiping down the tables, readying them for the after-office crowd that will come in the evening.
From the outside, not many would suspect a pool cafe behind the entry door. The only thing that gives it away is an LED board with a running scroll reading ‘Billiards, Snooker, Pool’. It is one of many basement businesses that flourish in Delhi.
Shamsher Singh, an advocate who works out of a basement office in East Nizamuddin, says, “If I want an office that’s close to the courts and accessible to my clients, and something that’s within a budget, a basement in a residential unit is my only choice. Central Delhi is one of the most expensive real estate markets so what do you do?”
According to a property dealer, the rental rates for a basement measuring around 900 square yards in a newly constructed building in Defence Colony is Rs 2.5 lakh, with the price going up to Rs 3.5 lakh for the ground and first floors, Rs 3 lakh for the second floor and between Rs 4 and 4.5 lakh for fourth floor and above.
Pritam Pal and his brother Gautam decided to start a jewellery business on the Kalkaji main road, a basement space was an obvious choice. For one, the price was considerably cheaper than above-ground real estate.
Despite paying around Rs 55,000 a month as rent, legal practitioner Pawas Kulshrestha was aghast when his swanky Defence Colony basement office was flooded during heavy rain on July 28. “I think almost all the lawyer chambers on this stretch were completely flooded. In some chambers, you couldn’t even see beyond the first step (of the staircase),” he says.
Misha Chandra, a young lawyer who works with a senior advocate in a well-decorated basement office in Vasant Kunj, can’t wait to work in a ‘real office’. “I know everyone has a basement, but when I have to work from the office the whole day, it is really disorienting. It’s sunny when I step in and very dark when I step out but I have no sense of how the day is changing from inside. There’s no window or absolutely any sunlight,” she said.
Frequently Asked Questions
What are the regulations governing basement usage in Delhi?
The Unified Building Bye-Laws, 1983, and the Master Plan Delhi, govern the regulatory landscape for basements in Delhi.
What activities are allowed in basements in Delhi?
Only ‘professional activities’ are allowed in residences in category A and B colonies, while other activities like gyms, diagnostic centres, and gaming zones are not allowed in basements.
Why are basement offices popular in Delhi?
Basement offices are popular in Delhi due to their affordability and proximity to courts and clients, making them an attractive option for professionals.
What are the challenges faced by basement office owners in Delhi?
Basement office owners in Delhi face challenges such as flooding, lack of sunlight, and cell phone network issues.
How has the basement economy impacted the real estate market in Delhi?
The basement economy has led to a surge in demand for basement spaces, driving up rental rates and property prices in Delhi.
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