The Delhi Development Authority (DDA) has taken a two-pronged approach to address housing demand and revive commercial real estate development in the capital. Lieutenant Governor V.K. Saxena, approved the launch of its Housing Scheme 2025, offering 177 flats through e-auction. Simultaneously, it cleared reforms aimed at making Delhi’s commercial property market more competitive with neighbouring NCR cities, primarily by slashing amalgamation charges for commercial land.
Under the 2025 housing scheme, DDA will offer 177 residential flats categorised under HIG (High Income Group), MIG (Middle Income Group), and LIG (Low Income Group) segments. Additionally, 67 car and scooter garages are included in the e-auction. These units are located in established areas such as Vasant Kunj, Dwarka, Rohini, Pitampura, Jasola, and Ashoka Pahari.
The scheme’s design reflects a shift from earlier draw-based models to market-linked allocation through e-auctions, suggesting a move toward more transparent and demand-sensitive housing delivery.
The most significant reform approved by DDA involves reducing amalgamation charges on commercial plots from 10% of the circle rate to 1%. This revision comes after prolonged demand from developers who found the high cost of merging adjacent plots to be a barrier to redevelopment. These charges had previously made it financially unattractive to undertake large-scale commercial projects in Delhi, especially when compared to neighbouring areas like Gurugram, Noida, and Greater Noida.
This change aligns DDA’s valuation practices with market conditions and is expected to unlock underutilised land for modern, high-density commercial projects. Developers and institutional investors had cited the prohibitive cost of amalgamation and the wide gap between circle rates and market rates as major hurdles in choosing Delhi over surrounding urban centres.
The reduced amalgamation charge is expected to accelerate the pace of consolidation in these ageing industrial zones and encourage private investment in infrastructure upgrades and new commercial formats.
Over the past decade, developers have increasingly preferred Noida, Gurugram, and other NCR towns due to their streamlined approval processes, lower regulatory costs, and availability of large land parcels. Delhi, constrained by limited land supply and higher charges, had seen declining interest despite its superior connectivity and demand.
One of the key observations of the task force constituted by the Lieutenant Governor was that Delhi’s high circle rates and their application through a multiplication factor made commercial property development disproportionately expensive compared to neighbouring jurisdictions.
The task force noted that these differences had not only discouraged local development but had also led to a substantial shift in capital flows towards peripheral NCR regions.
In addition to housing and commercial property reforms, DDA also approved the change of land use in several sectors of the Narela sub-city. This includes provisions for developing an education hub, a multi-sport integrated stadium, and other civic infrastructure. The Narela area, which has long been earmarked for urban expansion, may now see accelerated development under this push.
To address unsold housing stock in Narela, DDA has further approved discounts for bulk purchase of these units by government departments and universities. This measure is aimed at reducing inventory overhang and enabling more efficient use of built infrastructure.
The latest set of decisions by DDA indicates a strategic shift towards unlocking economic potential within Delhi’s boundaries by reducing cost barriers and enabling larger, structured developments. While the housing scheme addresses demand in specific income groups, the commercial property reforms have broader implications for urban renewal, investor sentiment, and Delhi’s position in the regional real estate market.
