In a bold policy move aligned with the Prime Minister’s Ease of Doing Business mission, DDA has slashed key commercial property costs and greenlit landmark infrastructure projects in Narela—aiming to reposition Delhi as a hub for real estate and urban growth.
BY PC Bureau
New Delhi, July 11, 2025 — In a major policy shift aimed at revitalizing Delhi’s commercial real estate landscape and easing investor constraints, the Delhi Development Authority (DDA) on Thursday announced sweeping reforms, including a drastic reduction in amalgamation charges for commercial properties and a cut in the auction multiplication factor. The decisions, which are being hailed as game-changers for the capital’s stagnating real estate sector, were taken during a meeting chaired by Hon’ble Lieutenant Governor Shri V.K. Saxena.
DDA Slashes Amalgamation Charges from 10% to 1%
One of the most significant announcements was the reduction of amalgamation charges for commercial plots—from 10% of the circle rate to a mere 1%. The move is expected to break long-standing financial barriers for developers seeking to consolidate plots for large-scale commercial projects.
Officials say that the high amalgamation fees in Delhi had, for years, driven developers and investors to neighbouring cities such as Gurugram and NOIDA, where the costs of land consolidation were significantly lower. “This step is aimed at reversing that trend by making Delhi commercially competitive again,” a senior DDA official said.
According to the DDA, the high charges were acting as a deterrent to urban redevelopment, leaving prime commercial parcels under-utilized and delaying the transformation of key urban corridors.
Auction Multiplication Factor Reduced to Attract Bidders
In a complementary move, the DDA also approved a reduction in the multiplication factor applied to commercial property auctions—from the existing 2 times the circle rate to 1.5 times. This means that developers will now be able to bid for commercial land at a lower benchmark price, making large-scale investment in Delhi’s commercial infrastructure more feasible.
The reforms, according to DDA, are part of an ongoing effort to align with the central government’s Ease of Doing Business agenda. “These reforms are not just about pricing. They are about unlocking the true economic potential of Delhi,” the official added.
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The changes follow the recommendations of a High-Level Joint Government–Industry Task Force, constituted by Lt. Governor Saxena, to assess and address structural barriers in the real estate sector. The task force noted that Delhi’s commercial plot pricing, driven by high amalgamation charges and steep auction benchmarks, had become misaligned with market realities, leading to capital flight and reduced investor interest.
Focus on Narela: Education Hub, Sports Complex, and Housing Push
Beyond financial reforms, the DDA meeting also brought renewed focus to the development of Narela Sub-City, one of Delhi’s most ambitious urban expansion projects.
Key decisions include:
🏫 Education Hub in Narela
The Authority approved a change of land use in sectors G-7 and G-8, paving the way for the development of an Education Hub. The area will now be open to the establishment of universities and institutions, aimed at turning Narela into a key academic destination in North Delhi.
🏟️ Multi-Sports Stadium and Sports Complex
In another move, a 75-acre plot originally marked for commercial and residential use has been re-designated as Public and Semi-Public (PSP). The space will now be used to build a Multi-Sports Integrated Stadium and Sports Complex in sectors G-3 and G-4, intended to boost both community participation and sports infrastructure in the capital.
Incentives for Government Agencies and Premium Housing E-Auction
The DDA also announced a series of incentives and launches in the housing sector:
🏘️ Bulk Discounts for Government Agencies
Government departments, PSUs, autonomous bodies, and universities purchasing a minimum of 10 flats in Narela will now be eligible for significant bulk purchase discounts. The discounts align with DDA’s Apna Ghar Awaas Yojana 2025:
- 25% discount on LIG flats
- 15% discount on MIG, HIG, and EWS flats
This move is designed to help public institutions secure housing stock in Narela and promote the area’s growth as a livable urban node.
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🏠 Premium Housing Scheme 2025
DDA also announced the launch of 177 premium HIG, MIG, and LIG flats and garages under the DDA Housing Premium Scheme 2025. The properties, to be sold via e-Auction, are located in several high-demand zones of Delhi, including:
- Vasant Kunj
- Dwarka
- Rohini
- Pitampura
- Jasola
- Ashoka Pahari
This marks a shift toward a more flexible, market-driven approach in housing allotment, aimed at optimizing returns while ensuring transparency.
Support for Signature View Allottees During Reconstruction
In a welfare-focused decision, the Authority also approved a monthly facilitation allowance for residents of Signature View Apartments, which are undergoing reconstruction:
- ₹50,000 per month for HIG flats
- ₹38,000 per month for MIG flats
This amount will be paid unit-wise to each resident as soon as they vacate their existing flats, ensuring financial support during the transitional period.
A Turning Point for Delhi’s Real Estate
Urban planning experts and industry stakeholders have welcomed these long-awaited reforms. The decisions are being seen as the DDA’s first serious step toward decentralizing regulations, rationalizing real estate pricing, and making Delhi a more investor-friendly city.
By listening to industry voices for the first time in its policy architecture, DDA has taken a significant leap toward making Delhi’s real estate market more dynamic, accessible, and equitable.
With improved commercial viability, streamlined land policies, and targeted infrastructure push in Narela, Delhi may finally be on the brink of a real estate renaissance.
