Delhi Cuts Commercial Property Charges To Match Gurugram, Noida Rates

The Delhi Development Authority (DDA) has approved significant cuts to commercial property charges in a move aimed at making the Capital more competitive with neighbouring Gurugram and Noida. The decisions, cleared during a meeting chaired by Lieutenant Governor VK Saxena, are expected to encourage more commercial development within Delhi, where high charges have long been seen as a deterrent.

Amalgamation Charges Cut from 10% to 1%

One of the key decisions is a drastic reduction in amalgamation charges for commercial properties-from 10% of the circle rate to just 1%. This will make it significantly cheaper for developers to combine smaller plots and undertake larger commercial projects, something that had become far more viable in cities like Noida and Gurugram due to their lower charges.

Officials acknowledge that the earlier structure made large-scale projects in Delhi financially unattractive, pushing developers to invest in neighbouring NCR towns instead.

Auction Pricing Factor Reduced

The DDA also approved a reduction in the multiplication factor used in the auction of commercial properties - from twice the circle rate to 1.5 times. This is expected to bring down the base price for auctions, potentially attracting more bidders and increasing developer participation in Delhi's commercial real estate sector.

Both decisions follow recommendations from a government-industry task force formed by the L-G's office, which found that high costs and rigid regulations were key reasons for the city falling behind its NCR counterparts in terms of commercial development.

Focus on Narela Development

The Authority also cleared several proposals aimed at boosting development in the underdeveloped Narela sub-city:

Change of Land Use: Approval was granted to convert land in sectors G-3, G-4, G-7, and G-8 for establishing a multi-sports stadium and an education hub.

Discounts on Unsold Flats: Government agencies and universities purchasing at least 10 flats in Narela will now receive the same discounts as individual buyers - 25% for LIG flats and 15% for MIG, HIG, and EWS units.

Premium Housing Scheme 2025: A new scheme will offer 177 residential flats and garages in localities such as Vasant Kunj, Dwarka, Rohini, Pitampura, Jasola, and Ashoka Pahari via e-auction.

Support for Signature View Residents: DDA will provide monthly rent assistance of Rs 50,000 for HIG flats and Rs 38,000 for MIG flats to residents of the unsafe Signature View Apartments during reconstruction.

Real estate developers have constantly flagged that Delhi's commercial property rules were outdated and cost-heavy. The latest reforms attempt to correct that imbalance, especially at a time when Delhi has been losing out on commercial investment to nearby cities.

While the move signals a shift in DDA's approach toward more developer-friendly policies, its impact will depend on how quickly these changes are implemented - and whether they lead to a visible uptick in commercial construction within the city.