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Construction, redevelopment, rentals: Delhi’s 4 million house plan

Delhi is staring at a housing gap of nearly 4 million homes by 2047, when its population is projected to reach 32 million, according to the Master Plan for Delhi-2047

Published on: Aug 14, 2026, 08:16:01 IST
By , New Delhi
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Delhi is staring at a housing gap of nearly 4 million homes by 2047, when its population is projected to reach 32 million, according to the Master Plan for Delhi-2047. To bridge that gap, the plan proposes a three-pronged approach: new constructions in land-pooling and transit-oriented development zones; redevelopment of existing neighbourhoods and unauthorised colonies, and a major expansion of affordable rental housing.

Delhi had 3.1 million residential houses in 2011, according to the Census, leaving a projected requirement of about 4 million additional units by 2047 (Photo for representation)
Delhi had 3.1 million residential houses in 2011, according to the Census, leaving a projected requirement of about 4 million additional units by 2047 (Photo for representation)

The plan, approved by the Delhi Development Authority (DDA) on Wednesday and accessed by HT, estimated the city’s housing requirement up to 2047 at around 7.11 million dwelling units, based on an average household size of 4.5 people. Delhi had 3.1 million residential houses in 2011, according to the Census, leaving a projected requirement of about 4 million additional units. The calculation in the MPD also factors in the existing housing backlog, population growth, replacement of obsolete housing and vacant housing stock.

“The housing strategy under MPD-2047 is based on three key approaches: creation of new housing stock, including affordable housing, regeneration and upgradation of existing housing areas and promotion of affordable rental housing,” the plan states.

The first component envisages large-scale construction in areas that are yet to be fully urbanised, including land-pooling zones, transit-oriented development (TOD) areas, high-density highway and road corridors and designated low-density areas. Group housing has been identified as the preferred model, with private developers, landowners and other stakeholders expected to play a larger role while public agencies act primarily as facilitators.

An official said increasing the permissible floor area ratio (FAR) would allow more vertical development while helping replace ageing housing stock and infrastructure. “By increasing the FAR, it is expected that more vertical growth can be promoted across different kinds of housing stock,” said an official aware of MPD’s details.

The plan estimates that land-pooling areas and TOD zones alone could provide around 3 million dwelling units.

The objective is not merely to add housing units, but also to upgrade ageing infrastructure and create better roads, utilities, public spaces and community facilities, the official said.

“Regeneration will enable optimal utilisation of land to create new housing, and improve the quality of existing housing stock,” the plan states. It envisages reconstruction and retrofitting using increased residential FAR, alongside better roads, utilities, public spaces and community facilities.

The second aspect of the strategy extends to Delhi’s older and unplanned settlements. Unauthorised colonies are proposed to be upgraded through infrastructure improvements, better connectivity and provision of public amenities. The plan says such redevelopment would allow proper road networks and open spaces while improving access for emergency vehicles, fire tenders and other services.

For slums and JJ clusters, the plan emphasises in-situ rehabilitation to minimise displacement. Only notified JJ clusters would be taken up for improvement through in-situ rehabilitation or other area improvement schemes, wherever feasible. Unauthorised colonies would also be brought into the formal urban framework through planned improvement, regularisation and redevelopment, with enhanced infrastructure and appropriate development norms.

The third component focuses on rental housing, aimed particularly at groups requiring flexibility and mobility, including students, single working men and women, migrants and seasonal workers. MPD-2047 proposes Affordable Rental Housing Complexes (ARHCs) on both public and private land and encourages small-format housing of around 25-60 square metres.

Hostels, dormitories and worker housing are also proposed, while vacant public housing could be converted into affordable rental accommodation. Public agencies may also work with rental management agencies and housing aggregators to improve the availability and visibility of rental units.

For future expansion, the plan proposes an infrastructure-led approach to greenfield development, integrating housing with commercial, industrial, recreational and public uses. It also introduces the concept of “Flexi Roads” to support integrated neighbourhoods and reduce fragmented development.

Low-density areas, meanwhile, would retain lower-density residential development while seeking to preserve the environmental character of Delhi’s peripheral areas.

Experts said that the scale of construction envisaged under the plan is likely to create substantial demand for workers across construction, engineering, architecture and allied sectors. “To meet this demand, there is a need to strengthen skill development, vocational training and upskilling programmes to ensure availability of a trained workforce… Delhi should focus on planned, high-density and efficient development, including group housing, TOD, redevelopment and affordable and mid-income housing. Greater use of modern and technology-driven construction methods will also help Delhi meet its housing requirements efficiently,” said Harsh Vardhan Bansal, President, NAREDCO Delhi.

Pyush Lohia, managing director, Lohia Worldspace, said that the industry must focus on job-ready skills. “At the same time, greater adoption of prefabrication, modular construction, BIM and automation can improve productivity and reduce dependence on conventional labour-intensive processes. A stronger partnership between developers, training institutions and government will be essential to build a future-ready workforce,” Lohia said.

BS Vohra, president of the East Delhi RWA Joint Forum, said the plan needed to assess the Capital’s carrying capacity before deciding where new housing should come up. “The Master Plan must first assess Delhi’s carrying capacity and then decide where and how housing should come up. Blind densification or endless expansion will only make Delhi more congested, polluted and unliveable. Housing must be planned alongside infrastructure, green spaces, public transport and employment, otherwise we will be creating houses, but not a liveable city.”

  • Snehil Sinha
    ABOUT THE AUTHOR
    Snehil Sinha

    Snehil Sinha is an Assistant Editor with the Delhi Metro bureau of Hindustan Times, where she reports on politics, governance, public policy, urban infrastructure and transport, subjects that shape the everyday lives of millions in the national capital. Over a journalism career spanning 14 years, she has built a reputation for meticulous, data-driven reporting that combines on-ground perspectives with policy analysis. She began her career with The Indian Express before joining Hindustan Times, where she has reported extensively on civic administration and urban governance in Gurugram, Noida and now Delhi. Her reporting is distinguished by its clarity, depth and balance. Whether covering large-scale infrastructure projects, environmental challenges, transport reforms or government policy, she tries to translate complex administrative decisions into accessible, engaging stories without losing nuance. Her work reflects a strong command of public records, official data and field reporting, often connecting policy announcements with their impact on citizens. Her stories go beyond headlines to explain how governance decisions influence the city's growth, mobility and quality of life, making her work an important contribution to informed public discourse.Read More

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