The Delhi Development Authority (DDA) has initiated a significant push for the redevelopment of ageing co-operative group housing societies and complexes in the National Capital. This move aligns with the Master Plan for Delhi (MPD) 2021 and the Transit Oriented Development (TOD) policy. It’s a positive step for Delhi’s real estate market.

For real estate enthusiasts and homeowners in the NCR, especially in Gurgaon, understanding this policy is essential. While Gurgaon’s market dynamics are different, the success of this large-scale urban renewal in Delhi is expected to impact the broader NCR property sentiment, construction standards, and infrastructure focus.

Here is a full, easy-to-understand breakdown of the new DDA policy for redeveloping old housing societies.

What is the New DDA Policy for Redevelopment?

The core idea of the new DDA policy is to encourage the demolition and rebuilding of old, often structurally weak, group housing societies. The aim is to create modern, safer, and better-equipped residential complexes.

Many old societies built in the 1980s lack modern amenities, proper parking, and, most importantly, compliance with current safety and seismic standards. The new policy provides a major incentive, i.e., increased Floor Area Ratio (FAR). This is to make these projects financially viable for the residents and developers.

The Primary Goal

The main objective is twofold:

• Safety and Modernisation: To replace old structures with new, earthquake-resistant buildings that incorporate modern planning and infrastructure.
• Optimum Land Use: To align existing complexes with the TOD policy, promoting mixed-use, pedestrian-friendly environments, and optimising land use along public transport corridors (like Metro lines).

What are the key incentives offered by the DDA?

The biggest draw for residents and developers is the significant increase in the permissible construction area. This is the main financial engine for redevelopment projects.

Enhanced Floor Area Ratio (FAR)

• Maximum Overall FAR: The policy allows a maximum overall FAR of 400.
• Incentive: Societies are allowed an incentive of 50% over and above the existing permissible FAR on individual plots, subject to the maximum limit of 400.

Note: For many existing societies, the current permissible FAR is around 350, so this incentive allows for substantial additional construction.

Redevelopment Aspect	New Policy Provision	Impact
Maximum FAR	400	Allows for taller buildings and more dwelling units.
Incentive FAR	50% over existing permissible FAR (max. 400)	Makes the project commercially viable for residents/developers.
Dwelling Units	Number of dwelling units may increase in the same proportion as the increased FAR.	More flats can be built, providing new flats to existing residents and new flats for sale.
Building Height	Allows for construction of 7-8 storey buildings	Increases density in well-connected areas.

Which Areas and Societies are Eligible for Redevelopment?

The policy is primarily focused on areas that are ripe for structural and urban renewal.

Eligibility Criteria

• Co-operative Group Housing Societies (CGHS): The plan specifically targets existing CGHS and complexes developed by government agencies.
• Transit Oriented Development (TOD) Zones: A primary focus is on the influence zone, which is approximately a 500-meter-wide belt on both sides of the centre line of existing and planned/approved Mass Rapid Transit System (MRTS) corridors (Metro/RRTS).
• Plot Size and Assembly:
  • A redevelopment scheme generally requires planning permission for a minimum area of 4 hectares.
  • For the second stage, a cluster block approval may be given for a minimum area of 3000 sq. meters.
  • Plot owners/societies are encouraged to pool together and reorganise their individual properties to meet these minimum area requirements.

Key Considerations for Societies

• Voluntary Participation: The redevelopment schemes are to be prepared by the respective local body, land owners, or residents themselves.
• Relaxation of Norms: In certain justified cases, standards for housing density, minimum width of roads, and community facilities can be relaxed by planning considerations to facilitate the project.

How Does This Affect the Gurgaon Real Estate Market?

Gurgaon’s real estate market operates under the jurisdiction of the Haryana Urban Development Authority (HUDA)/HSVP and has different development rules. However, the DDA’s massive redevelopment initiative in Delhi has a palpable ripple effect across the entire National Capital Region (NCR).

1. Rise in Competition and Quality

• Quality Benchmark: Gurgaon is known for better construction quality and modern amenities offered by private developers compared to many older DDA projects. The new policy mandates modern, safe construction, raising the overall quality benchmark across the NCR.
• Price Comparison: As Delhi gets new, premium, and well-connected housing units (like the projects along TOD corridors), buyers may compare these against similar properties in Gurgaon. This could encourage Gurgaon developers to focus more on value and competitive pricing.

2. Focus on Infrastructure-Led Growth

• TOD Validation: The DDA’s strong alignment with the TOD policy validates the concept of developing high-density, mixed-use projects near transit hubs. This strengthens the investment case for transit-centric locations in Gurgaon, such as the Dwarka Expressway and areas near the proposed RRTS corridors.
• Increased Connectivity Demand: As Delhi modernises its old stock, the demand for better infrastructure connectivity between Delhi and Gurgaon will grow even stronger, benefiting key connecting corridors.

3. Investment Diversification

• New Avenues: For investors based in Gurgaon, this policy opens up a new avenue for investment in Delhi’s redevelopment space, especially in societies with strong growth potential due to enhanced FAR and TOD benefits.
• End-User Focus: Both markets are seeing a shift towards end-users who prioritise long-term value, safety, and community amenities. The DDA’s policy directly addresses these concerns for Delhi’s ageing properties.

What are the Next Steps for an Interested Society?

For a Co-operative Group Housing Society (CGHS) in Delhi interested in this opportunity, the process is structured and requires collective action:

1. Form a Consortium/Group: Residents/owners need to come together (potentially with private developers) to agree on the redevelopment.
2. Prepare the Scheme: A detailed layout plan and survey plan must be prepared, often by appointing a Project Management Consultant (PMC).
3. Seek Planning Permission: The plan must be submitted to the concerned authority (DDA/Local Body) for planning permission for the minimum required area (e.g., 4 Ha).
4. Obtain Approvals: Once the overall plan is approved, cluster-block approval for smaller segments (e.g., min. 3000 sqm) can be sought.

The DDA’s new policy is a landmark urban renewal initiative, offering a path for residents of Delhi’s older housing societies to upgrade to safer, modern, and more valuable homes, simultaneously boosting the planned development of the entire National Capital Region.