New reform proposals for Delhi’s real estate sector — including automatic redevelopment of over 50-year-old group housing buildings, simplification of land amalgamation rules, and incentives for green buildings — could modernise areas like Lutyens’ Delhi and align with successful models like Mumbai’s redevelopment scheme, experts said.
These real estate reforms, proposed by a joint government-industry task force, are designed to cut procedural delays, reduce financial burdens, and foster sustainable urban development in the national capital, they said.
BK Malagi, Vice Chairman, Experion Developers, said that the proposed single-window clearance reform will reduce bureaucratic hassles, shorten the project duration, and enhance the overall business climate, thus boosting the confidence of investors and developers in Delhi’s real estate market.
The reforms could also lead to a rise in property costs due to aligned circle rates and increased stamp duty. These reforms are set to fundamentally reshape Delhi's property landscape, potentially emulating Mumbai's successful redevelopment model, addressing long-standing issues like land pooling, and paving the way for sustainable projects.
What do the reforms propose?
A government-industry taskforce recently submitted a comprehensive report outlining key real estate reforms for Delhi that aim to significantly streamline regulations.
These reforms propose to remove the current minimum four-hectare area norm for group housing societies to qualify for redevelopment, which will simplify the process for older buildings. The reforms also talk about reducing the amalgamation charges to 1 percent from the existing 10 percent so integrated commercial schemes would see lower charges for combining plots.
Projects pursuing green certification could receive an additional 1-4 percent ground coverage and up to 5 percent extra Floor Area Ratio (FAR). The taskforce has also proposed revising the multiplication factor for circle rates, setting it at 1 for industrial properties and 1.5 for commercial properties when determining DDA auction reserve prices.
These same factors would apply to land valuation for stamp duty payments, aiming to better align circle rates with actual market values.
What would be the impact on the real estate sector?
Santhosh Kumar, Vice Chairman – ANAROCK Group, said that proposed reforms can significantly improve transparency, efficiency and investor-friendliness in the Delhi real estate market.
“Lowering amalgamation charges, relaxing norms related to redevelopment and giving more incentives for green buildings will help reduce procedural delays and financial burdens, and encourage more sustainable development. This can potentially unlock a new level of growth and boost investor confidence in the sector in Delhi,” he said.
Kumar said that by making regulations less complex, encouraging sustainability, and opening the way for quicker project approvals, Delhi can position itself as an urban development leader. “It will help attract more investment and give rise to more innovative projects going forward,” he said.
How would the reforms boost redevelopment projects?
Rohit Chopra, founder, Southdelhiprime.com, an online real estate consultancy firm, said that reforms like the automatic redevelopment of group housing buildings over 50 years old will make luxury upgrades possible, and eligible properties in the Lutyens Zone — such as Prithviraj Road, Barakhamba Road, Kasturba Gandhi Road, and similar areas — may see massive upgrades.
“Aged cooperative societies or group housing units can be upgraded into luxury assets efficiently. Reforms also propose that amalgamation charges be slashed from the existing 10 percent to 1 percent, which will make redevelopment easier and cheaper,” he said.
Kumar of ANAROCK said that reforms can help streamline redevelopment by allowing it by default for ageing and/or structurally unsound buildings.
He said that with these relaxations in place, Delhi may also witness a spree of redevelopment projects on the lines of Mumbai.
“By relaxing area norms, lowering consent thresholds, and speeding up approvals, these reforms will ensure that more group housing and DDA colonies will qualify for redevelopment. This will potentially emulate the results already seen in Mumbai’s redevelopment scene,” he added.
Malagi of Experion Developers said that for a land-scarce city like Delhi, redevelopment is the way forward for sustainable urban future.
“Streamlining the approval process and incentivising the same can be one of the ways through which such changes can free up latent resources, renew old infrastructure, and add value to the housing supply—without a compromise on contemporary planning or amenities,” he said.
Will properties become costlier in Delhi?
Kumar said that property prices will very probably increase because the revision of circle rates will now align with actual market values.
“This will result in increased base prices and impact buyers as well as sellers of property. Stamp duty and registration costs will also increase. That said, the streamlining of processes and a hiked supply pipeline will help moderate this impact,” he said.
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