The Delhi Development Authority has decided to reduce the amalgamation charges for commercial properties from the present 10% of the circle rate to just 1%, a decision which will unlock the real estate potential of Delhi.
Additionally, the authority has reduced the multiplication factor for auction of commercial properties from the present rate of twice the circle rate to 1.5 times the circle rate. This will also catalyse greater investment and participation of real estate developers in commercial development in the city.
The decision will incentivize real estate developers to develop commercial areas to scale and promote investment and employment in the city. This was one of the key reasons for commercial developments migrating to neighbouring cities in the NCR like Noida and Gurugram, where the admissible amalgamation charges were far lower compared to Delhi.
These decisions followed the recommendations of a high-level joint government- industry task force constituted by LG VK Saxena.
The high amalgamation charges for commercial properties in Delhi were prohibitive and discouraged developers from consolidating plots and undertaking large scale projects. This, consequently led to under-utilization of prime commercial areas, delayed infrastructure development and missed opportunities for urban mobility and redevelopment.
Similarly, the task force had observed that Delhi’s circle rates are disproportionately high as compared to market rates in neighbouring cities and a high multiplication factor is restricting the opportunities available for investors, resulting in greater investments in other cities of NCR. This is the first time that DDA has taken on board industry views for deregulation and simplification of its policies.
The authority also approved change of land use in various sectors of Narela to help in creating an education hub, development of Multi Sports Integrated Stadium and Sports Complex and overall development of the sub-city. In addition to this, the authority also approved discount on bulk purchase of unsold flats in Narela by government departments and Universities.
Additionally, the authority has reduced the multiplication factor for auction of commercial properties from the present rate of twice the circle rate to 1.5 times the circle rate. This will also catalyse greater investment and participation of real estate developers in commercial development in the city.
The decision will incentivize real estate developers to develop commercial areas to scale and promote investment and employment in the city. This was one of the key reasons for commercial developments migrating to neighbouring cities in the NCR like Noida and Gurugram, where the admissible amalgamation charges were far lower compared to Delhi.
These decisions followed the recommendations of a high-level joint government- industry task force constituted by LG VK Saxena.
The high amalgamation charges for commercial properties in Delhi were prohibitive and discouraged developers from consolidating plots and undertaking large scale projects. This, consequently led to under-utilization of prime commercial areas, delayed infrastructure development and missed opportunities for urban mobility and redevelopment.
Similarly, the task force had observed that Delhi’s circle rates are disproportionately high as compared to market rates in neighbouring cities and a high multiplication factor is restricting the opportunities available for investors, resulting in greater investments in other cities of NCR. This is the first time that DDA has taken on board industry views for deregulation and simplification of its policies.
The authority also approved change of land use in various sectors of Narela to help in creating an education hub, development of Multi Sports Integrated Stadium and Sports Complex and overall development of the sub-city. In addition to this, the authority also approved discount on bulk purchase of unsold flats in Narela by government departments and Universities.
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