Experts say new plans for Delhi’s property sector could bring modernization. These plans include rebuilding older housing buildings. They also simplify property joining rules. Incentives for eco-friendly buildings are included. These changes might help areas like Lutyens’ Delhi. They could also mirror Mumbai’s successful rebuilding efforts.
A joint government and industry group proposed these changes. The goal is to reduce delays. They also aim to lower costs. This will support green urban growth in the capital.
BK Malagi of Experion Developers stated that a new one-stop approval system will help. It will cut red tape. This shortens project times. It also improves the business environment. This boosts investor and builder confidence.
Property prices might rise. This is due to matching property values and higher stamp duty. The reforms will change Delhi’s property scene. They could follow Mumbai’s redevelopment success. This will tackle issues like land pooling. It also opens the door for greener projects.
What do the reforms propose?
A task force submitted a report. It detailed key property reforms for Delhi. These reforms aim to simplify rules.
The current rule requiring four hectares for housing redevelopment is removed. This makes rebuilding older buildings easier. Charges for joining land plots will drop. They will go from ten percent to one percent. This lowers costs for combined commercial projects.
Projects with green building status get more benefits. They can build on more ground. They also get more floor space. The task force suggests changing how land prices are set. The price factor for industrial land will be one. For commercial land, it will be 1.5. This applies to land sold by the DDA.
These factors will also affect land valuation for stamp duty. This aims to make property values fairer.
What would be the impact on the real estate sector?
Santhosh Kumar of ANAROCK Group noted the reforms’ benefits. They can improve honesty and efficiency. They will make Delhi’s property market more appealing to investors.
Lower charges for joining land plots help. Relaxed rebuilding rules are beneficial. More rewards for green buildings assist. These changes reduce delays and costs. They also encourage sustainable building. This can fuel growth. It will increase investor trust in Delhi’s property market.
Kumar added that simpler rules help. Encouraging green building is positive. Faster project approvals attract investment. Delhi can lead urban growth. More money will come in. New projects will emerge.
How would the reforms boost redevelopment projects?
Rohit Chopra of Southdelhiprime.com stated that reforms help older housing. Automatic rebuilding for buildings over 50 years old is key. Luxury updates become possible. Prime areas like Lutyens’ Zone could see big changes. This includes streets like Prithviraj Road and Barakhamba Road. Old housing societies can now upgrade.