In an effort to boost commercial areas in Delhi and prevent investors from migrating to NOIDA and Gurugram, Delhi Development Authority (DDA) has decided to reduce the amalgamation charges from the present 10 percent of the circle rate to just one percent. In another major decision, 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.
These two major decisions were taken on Friday in a meeting of DDA chaired by Delhi Lt Governor Vinai Kumar Saxena. The approvals were given to unlock the real estate potential of Delhi and enhance commercial opportunities in the National Capital.
As regards reduction in amalgamation charges, DDA said this 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.
In another major decision, 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.
These decisions emanate from the recommendations of a High Level Joint Government- Industry Task Force constituted by Saxena, which observed that higher charges and multiplication factor led to bottleneck in property transactions.
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 today 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.
The other decisions taken in the Authority meeting include discount scheme for bulk purchase of flats by Central and State Government Departments, Organizations, Undertakings, Autonomous Bodies, and Government Universities.
As per the approval, Government agencies and universities purchasing a minimum of 10 flats, will be eligible for the same discount currently offered to the general public under DDA’s ApnaGharAwaasYojana 2025, i.e. 25% on LIG flats and 15% on MIG, HIG, and EWS flats in Narela.
The DDA also announced launch of Premium Housing Scheme 2025 offering177 residential HIG, MIG, LIG Flats and Garages, via e-Auction, at prime locations like including VasantKunj, Dwarka, Rohini, Pitampura, Jasola, AshokaPahari and others.
The Authority approved DDA Housing Premium Housing Scheme 2025 through e-Auction mode, of HIG, MIG, and LIG categories and 67 Car/Scooter Garages across some of the most sought-after localities of Delhi and others
Moreover, Change of Land Use for development of universities in sector G-7 / G-8 as part of the proposed Education Hub in Narela Sub-City was also approved.
Change of Land Use of a 75-acre plot from Commercial & Residential to Public and Semi-Public (PSP) for development of Multi Sports Integrated Stadium and Sports Complex in sector G-3 / G-4 in Narela Sub-City was also okayed.
Approval of facilitation amount of Rs 50,000 per month for HIG flats and Rs 38,000 per month for MIG flats towards rent for residents of Signature View Apartments during the period of reconstruction. The rent will be paid unit-wise to each allottee/owner as and when the flat is vacated, the DDA said.