NEW DELHI – A comprehensive report outlining key reforms for Delhi’s property sector has been submitted by a joint government-industry taskforce. These proposed measures aim to simplify regulations and bolster investor confidence within the city’s real estate market. The reforms are expected to unlock the vast potential of Delhi’s real estate, by reducing procedural delays, easing financial burdens, and encouraging sustainable development. A senior official noted that these changes could significantly enhance stakeholder confidence, thereby catalyzing growth in the city’s real estate landscape.
A central recommendation involves a substantial reduction in amalgamation charges for integrated commercial schemes. Currently, these charges stand at 10% of the circle rates, a figure considered a major deterrent to development. The taskforce has suggested lowering this fee significantly to just 1% of the circle rates. Furthermore, to address disparities between market and circle rates and ensure greater transparency and fairness in property transactions, the taskforce recommends revising the multiplication factor applied to circle rates for determining the reserve price in DDA auctions. For industrial properties, this factor should be one, while for commercial ones, it should be 1.5. The same factors are also proposed for land valuation purposes related to stamp duty payments.
Regarding the redevelopment of group housing, DDA housing, and cooperative societies, the report advocates for allowing redevelopment by default, particularly for buildings over 50 years old or those failing structural audits. It also calls for relaxation in current area norms that mandate a minimum of four hectares for group housing schemes to qualify for redevelopment. The taskforce further suggests amending rules to allow additional members in cooperative societies if necessary and urges DDA to frame charges related to common areas. To ease the process, redevelopment should be permitted with 75% consent from stakeholders.
To streamline various approval processes, a fast-track system has been proposed for land amalgamation, with layouts to be approved by DDA’s screening committee. Amalgamation charges will be collected during approval, thereby integrating the entire process through a single-window system. The taskforce also suggests that layout plan approval by the Municipal Corporation of Delhi (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. Importantly, green building certification by central government-recognised agencies will be mandatory for projects with built-up areas exceeding 2,000 square metres.
Minister Manjinder Singh Sirsa stated that the taskforce has proposed several bold measures to enhance ease of doing business, encourage sustainable development, and promote faster project approvals. He added that these reforms will foster a more transparent, efficient, and investor-friendly environment, positioning Delhi as a leader in urban real estate development. The government is expected to review these recommendations closely before initiating steps for implementation. The taskforce’s key institutions include 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.
