Delhi proposes major reform package to revive commercial real estate

In a significant move aimed at revital-ising the National Capital's commercial real estate sector, the Delhi government has proposed a sweeping reform package designed to reduce development bottlenecks, encourage sustainable construction, and boost investor confidence. The announcement, made in early July 2025 by a joint government-industry taskforce, is being seen as a pro-business pivot by the administration, which has often been criticised for red tape and regulatory delays.

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At the core of the proposal is a dramatic reduction in amalgamation charges—from the current 10% to just 1%. This change is expected to incentivise the consolidation of smaller plots into larger, viable commercial developments, especially in older parts of the city like Karol Bagh, Connaught Place, and Nehru Place, where redevelopment potential is high but underutilised due to legacy regulations.