DDA Approves Major Reforms to Boost Delhi's Commercial Real Estate and Housing

7/15/2025 11:42:00 AM

In a significant push to revive Delhi’s commercial real estate market, the Delhi Development Authority (DDA) has introduced major policy reforms to attract developers and large-scale investment into the city. At a recent meeting chaired by Lieutenant Governor V.K. Saxena, the DDA announced a sharp reduction in amalgamation charges for commercial properties—from 10% of the circle rate to just 1%. This change aims to make land consolidation more financially viable for developers, enabling them to utilize underused commercial plots for bigger projects. "High amalgamation costs were a major hurdle for developers in Delhi. This move is expected to pave the way for new commercial development across the capital," the DDA said in its statement. Additionally, the DDA has revised the multiplication factor used for auctioning commercial plots. Instead of twice the circle rate, the new benchmark will be 1.5 times the rate. This adjustment brings DDA’s property valuations closer to market prices and aims to make Delhi more competitive with other NCR cities like Gurugram and Noida, where lower regulatory costs have traditionally attracted more projects. The reforms are part of a larger strategy to reverse the ongoing trend of developers moving outside Delhi and to reignite commercial investment within city limits. Apart from commercial changes, DDA also approved a shift in land use in parts of Narela, with plans to develop the area into a future educational hub. The blueprint includes a multi-sports stadium and a fully integrated sports complex, intended to accelerate Narela’s urban development. In the housing segment, the DDA is preparing to launch its 2025 premium housing scheme. Under this initiative, 177 flats will be offered through e-auction to middle and lower-income families in prime areas such as Vasant Kunj, Dwarka, Rohini, Jasola, Pitampura, Ashoka Pahari, and more. These reforms reflect DDA’s broader aim to rejuvenate urban infrastructure, create a more investment-friendly environment, and promote inclusive housing development across Delhi.


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