The capital city’s restricted land utilization has led to the expansion of Gurgaon and Noida, But with the implementation of Delhi’s long-awaited Master Plan, there is a new growth momentum in Delhi realty market. The central government is preparing a policy to permit high-rise residential towers in Delhi directly linked to metro stations via elevated walkways.
Delhi’s Transit Oriented Development
As of now, vertical housing is strictly prohibited in Delhi’s Master Plan 2021. Typically, residential plots are allowed to be three stories high without a lift. Anything taller requires additional approvals from the Delhi Development Authority (DDA), resulting in selective development. The DDA’s upcoming Master Plan 2041 aims to change that by allowing more liberal floor-area ratios. The plan permits ground coverage ranging from 33 per cent to 50 per cent for residential plots designated for vertical use. Once implemented, the new rules are expected to spawn high-rise buildings across the capital city, especially in areas adjacent
According to Union Housing and Urban Affairs Minister Manohar Lal Khattar, the new infrastructure would let residents access public transit without relying on roads, offering a long-overdue solution to Delhi’s persistent surface congestion. “Urbanisation is picking up pace, but land is limited. We need to use vertical space. Many cities are adopting Transit-Oriented Development (TOD), which allows multi-storey buildings along metro lines. For Delhi, we will soon introduce a policy to construct high-rise buildings connected directly to metro stations with a hanging way, and residents will not need to use roads. This policy, still under formulation, would mark a substantial shift in how the capital builds housing, integrating urban transport directly into residential infrastructure. With Delhi’s population density swelling and available land becoming scarcer, vertical development is not just preferable, it’s necessary.”
The central government is preparing a policy to permit high-rise residential towers in Delhi directly linked to metro stations via elevated walkways.
Delhi Government Reform Initiatives
In order to develop better infrastructure and address critical issues such as unauthorized colonies, redevelopment of colonies, and ease of doing business, Delhi government has mooted, revising the circle rates, simplifying building by laws, and improving coordination among various agencies. The taskforce was formed comprising key institutions as its members, including Municipal Corporation of Delhi, Delhi Development Authority, Delhi State Industrial and Infrastructure Development Corporation, Delhi Metro Rail Corporation and Confederation of Indian Industry that has proposed several bold measures.
Delhi Chief Minister has emphasized the need to make construction-related procedures simple, transparent, and accountable to avoid unnecessary delays in developmental works.
“Government just needs 2 years to revamp Delhi and fill the bottleneck of past 10 years of developmental backlog. Our vision is to convert all the slums in Delhi into permanent homes. For the PPP models for developing state of the art hospitals, schools, shopping malls, accommodations and infrastructure, the government will give full policy and funding support. We are in the process of simplifying the licensing system so that with strong state and industry coordination we can make Delhi as a high-tech capital city,” said Rekha Gupta, Delhi Chief Minister.
Proposals to Boost Delhi Realty Market
- One of the key recommendations is a substantial reduction in amalgamation charges for integrated commercial schemes from current 10% of the circle rates to just 1% of the circle rates.
- The report advocates allowing redevelopment by default for buildings over 50 years old or those failing structural audits.
- It calls for relaxation in the current area norms that mandate a minimum of four hectares for group housing schemes to qualify for redevelopment.
- It suggests amending rules to allow additional members in cooperative societies if necessary and urge DDA to frame charges related to common areas.
- Redevelopment should be permitted with 75% consent from stakeholders to ease the process.
- A fast-track approval process has been proposed for land amalgamation, with layouts to be approved by DDA’s screening committee. Amalgamation charges will be collected during approval, streamlining the entire process through a single-window system.
- The layout plan approval by MCD should not be mandatory for single plots unless there is a change in land usage. This move is expected to simplify processes for individual plot owners.
- Granting additional ground coverage ranging from 1% to 4% for green building projects, along with up to 5% extra floor area ratio for certified green buildings. The green building certification by central govt-recognized agencies will be mandatory for projects with built-up areas exceeding 2,000 square meters.
- Revise the multiplication factor applied to circle rates to one for industrial properties and 1.5 for commercial ones while determining the reserve price for DDA auctions.
- To address the disparity between market and circle rates, the same factors should be applied for land valuation purposes related to stamp duty payments to bring fairness to property transactions.
“We have enough land available in Delhi, but unfortunately, there was no land use change policy. And since there was no land use change policy, unauthorized construction took place. The new master plan could offer a policy of reorganization of these unauthorized colonies and redevelopment of the societies and buildings that are old, “ commented Anand Kumar, Chairman, Delhi’s Real Estate Regulatory Authority (RERA).
Strengthening Delhi RERA
In a significant push to improve compliance Delhi Real Estate Regulatory Authority (Delhi RERA) in June 2025 rolled out a set of binding directions, marking a shift from passive registration to active regulatory monitoring.
Highlights of the Directions
Quarterly Disclosure Mandate: Promoters of registered projects must now upload quarterly progress reports on the Authority’s portal covering physical construction status, sales data, and updated approvals.
Correction of Project Status: Projects that are completed or no longer active, but still reflected as “ongoing” on the Delhi RERA portal, must be immediately updated to avoid inconsistencies in the public project registry and prevent misleading information to prospective buyers.
Project-Specific Bank Account Disclosures: Promoters must disclose the bank account(s) maintained under Section 4(2) (l)(D) of the Act where 70% of funds collected from allottees are to be deposited for construction and land cost.
Renewal & Conduct of Real Estate Agents: Real estate agents have to ensure their registration is current and renewed, and their dealings strictly in line with RERA registere projects, ensuring better accountability and discipline in brokers community.
Penal Consequences for Non-Compliance: This direction invokes Section 61, warning that failure to comply may attract financial penalties, cancellation of registration, or blacklisting.
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