Reforms like automatic redevelopment for group housing older than 50 years will open the door for luxury upgrades. Properties in the Lutyens Zone, such as Prithviraj Road, Barakhamba Road, Kasturba Gandhi Road, and similar areas, could see significant improvements.
Delhi’s real estate reforms may spark large-scale redevelopment, leading to higher property prices. New proposals include removing the need for approval for buildings over 50 years old, easing land merging rules, and offering incentives for green building designs. Experts say these changes could modernize areas like Lutyens’ Delhi and mirror successful models like Mumbai’s redevelopment efforts.
The reforms come from a joint effort between government and industry groups. Their goal is to cut down on delays, lower costs, and promote sustainable growth in the city. BK Malagi, Vice Chairman of Experion Developers, states that a new single-window approval process will cut red tape, speed up projects, and boost confidence among investors and builders in Delhi’s real estate scene.
These reforms could also increase property prices by aligning circle rates and raising stamp duty. They aim to shake up Delhi’s property scene, possibly copying Mumbai’s successful redevelopment approach. This plan addresses long-standing issues like land pooling and supports environmentally friendly projects.
A recent report from a government-industry task force outlines major reforms. These include removing the current minimum four-hectare requirement for group housing projects, making redevelopment easier for older buildings. The plan also suggests lowering land transfer charges from 10 percent to 1 percent for integrated commercial schemes.
Projects with green certifications could qualify for additional ground coverage of 1 to 4 percent and up to 5 percent more Floor Area Ratio (FAR). The task force proposes updating how circle rates are used, setting the multiplication factor at 1 for industrial land and 1.5 for commercial property. These changes would also impact land valuation for stamp duty, aligning it more closely with actual market prices.
What does this mean for Delhi’s real estate market?
Santhosh Kumar, Vice Chairman of ANAROCK Group, believes the reforms will bring greater transparency and faster processes. They will make investing in Delhi easier.
“Lowering land amalgamation charges and easing redevelopment rules will cut delays and costs. Offering green building incentives encourages sustainable projects. This can lead to more growth and investor confidence,” he says.
He adds that simpler rules and a focus on sustainability could help Delhi become a leader in city development. “This will attract more investments and inspire new projects in the future.”
How will these reforms impact redevelopment efforts?
Rohit Chopra, founder of Southdelhiprime.com, explains that automating redevelopment for buildings over 50 years old will allow for luxury upgrades. Properties in popular areas like Prithviraj Road, Barakhamba Road, and Kasturba Gandhi Road in the Lutyens Zone will benefit from these changes.