Key reforms proposed to boost Delhi’s real estate market

                
New Delhi: In a move aimed at simplifying regulations and boosting investors' confidence, the joint govt-industry taskforce on real estate reforms has submitted a 
comprehensive 
report outlining key reforms for the sector in the city. One of the key recommendations is a substantial reduction in amalgamation charges for integrated commercial 
schemes. 
Currently, the charges stand at 10% of the circle rates, considered a major deterrent to development. The taskforce 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 said the taskforce had proposed several bold measures to enhance ease of doing business, encourage sustainable 
development and 
promote faster project approvals. The reforms, he added, will create a more transparent, efficient and investor-friendly environment, positioning Delhi as a leader in urban 
real estate 
development.

Govt is expected to review the recommendations closely before initiating steps for implementation.The taskforce has key institutions as its members, including Municipal 
Corporation 
of Delhi, Delhi Development Authority, Delhi State Industrial and Infrastructure Development Corporation, Delhi Metro Rail Corporation and 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 incentivise 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 govt-recognised agencies will be 
mandatory for 
projects with built-up areas exceeding 2,000 square metres.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 said the 
proposed 
reforms were 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, catalysing growth in the city's real estate landscape, he added.



Source : Times of India