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DDA approves e-auction of 177 flats under 2025 housing scheme; clears reforms to boost commercial real estate in Delhi
Delhi Development Authority will soon launch Housing Scheme 2025 offering177 residential HIG, MIG, LIG flats and 67 car/scooter garages, via e-auction
The Delhi Development Authority (DDA) has cleared the launch of the Housing Scheme 2025, offering 177 residential flats to middle and lower-income groups through e-auction. These units will be located in prime areas such as Vasant Kunj, Dwarka, Rohini, Pitampura, Jasola, Ashoka Pahari, and others.
It also approved a series of reforms aimed at revitalising the capital’s commercial real estate sector and attracting large-scale investments into the capital.
These decisions were taken in a DDA meeting chaired by Lieutenant Governor V K Saxena on July 11.
The authority has drastically reduced amalgamation charges for commercial properties, from the existing 10% of the circle rate to just 1%. The move is aimed at exploiting under utilised commercial plots, making them financially viable for developers to consolidate land and undertake large-scale projects, the statement said.
"High amalgamation costs were among the biggest deterrents for developers in Delhi. This decision is expected to trigger a new wave of commercial development in the capital," DDA's statement said.
"This change aims to align DDA’s property valuation more closely with market realities and make Delhi more competitive within the National Capital Region (NCR). For years, developers have pointed to the stark difference in regulatory costs between Delhi and its neighbouring cities as a key reason for shifting projects," DDA said.
How will amalgamation of land parcels help?
“This is a positive step. When plots are amalgamated, it gives a larger land parcel for planned development. It would help in creating more marquee projects which can attract institutional investments into Delhi,” said Ramesh Menon, founder and principal lead, Delhi Consortiums.
“Larger plots can have more offset from the road, have a smaller building footprint; thereby have parking spaces for occupants. Large parts of the 27 old Industrial estates of Delhi need modernisation of infrastructure as well as structured workspaces for the future. Since land is a finite product in Delhi, policy makers need to future gaze into the needs of the city and shed the archaic development models. If Dubai, Singapore, Tokyo, Vietnam and such places can plan modern commercial properties, Delhi also should think scale,” he said.
DDA approves Housing Scheme 2025
The Authority also approved the premium Housing Scheme 2025 offering177 residential HIG, MIG, LIG flats and 67 car/scooter garages, via e-Auction, at prime locations including Vasant Kunj, Dwarka, Rohini, Pitampura, Jasola, Ashoka Pahari and others, the statement said.
These decisions emanate from the recommendations of a high-level joint government industry task force constituted by LG, VK Saxena, which observed that higher amalgamation charges and multiplication factor on the circle rates with regards to commercial plots led to great disparity and created a bottleneck in property transactions as developers were discouraged from proceeding due to the financial implications, it said.
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The high amalgamation charges for commercial properties in Delhi were prohibitive and discouraged developers from consolidating plots and undertaking large scale projects. This, consequently led to under-utilization of prime commercial areas, delayed infrastructure development and missed opportunities for urban mobility and redevelopment, it said.
Similarly, the Task Force had observed that Delhi’s circle rates are disproportionately high as compared to market rates in neighbouring cities and a high multiplication factor is restricting the opportunities available for investors, resulting in greater investments in other cities of NCR, it said.
The Authority also approved change of land use in various sectors of Narela to help in creating an education hub, development of multi-sports integrated stadium and sports complex and overall development of the sub-city, it said.
In addition to this, the Authority also approved discount on bulk purchase of unsold flats in Narela by government departments and universities, the statement added.
