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The Delhi Development Authority (DDA) has sanctioned a series of major reforms intended to reinvigorate Delhi's commercial real estate market. Amalgamation charges for commercial properties have been reduced from 10% to 1% of the circle rate, and the auction multiplier lowered from 2x to 1.5x. These decisions are designed to counterbalance the capital's long-standing regulatory cost disadvantage compared to neighbouring cities. Additionally, DDA approved land use changes in Narela to establish an educational and sports hub and announced a premium housing scheme for 2025 with 177 units across prime locations.
The Delhi Development Authority (DDA) has introduced significant reforms intended to rejuvenate the commercial real estate landscape in the capital and attract greater investment. During a high-level meeting chaired by Lieutenant Governor V K Saxena, the authority approved a major cut in amalgamation charges for commercial properties-from the earlier 10% of the circle rate to just 1%. Advertisement
The authority noted that high amalgamation costs had long been a substantial hurdle for real estate developers in Delhi. The sharp reduction is anticipated to unlock potential across underutilised commercial plots by encouraging developers to merge land parcels and initiate larger commercial projects. According to DDA's statement, this step is set to stimulate a fresh cycle of commercial infrastructure development within city limits.
In another critical change, the DDA has lowered the multiplication factor applied during auctions of commercial properties from twice the circle rate to 1.5 times. The agency clarified that this realignment would bring DDA's pricing mechanism closer to prevailing market conditions and enhance Delhi's competitiveness in contrast with adjacent cities in the National Capital Region (NCR). Developers have long criticised Delhi's steep charges compared to neighbouring hubs such as Gurugram and Noida, often citing this disparity as a reason for relocating or deferring investment.
By addressing these cost differentials, the DDA aims to reverse this outflow and channel more commercial investment back into Delhi.
Alongside these commercial reforms, the agency has also approved land use modifications across various sectors in Narela. These alterations are part of a broader strategy to establish the area as an educational zone while also laying the groundwork for a multi-sport integrated stadium and sports complex. The DDA believes that this planned development will expedite Narela's transformation into a key urban sub-centre.
Source: PTI
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