The Delhi Development Authority (DDA) has announced a landmark reform in July 2025 that is set to revitalize Delhi’s commercial property market. By reducing amalgamation charges to just 1% of the circle rate and lowering the auction multiplication factor from 2× to 1.5×, the DDA is directly addressing long-standing concerns of real estate developers and investors.

This major policy shift is designed to revive investor confidence, reduce costs, and make Delhi’s commercial property sector more attractive compared to Gurugram, Noida, and Faridabad.

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Until now, Delhi’s commercial property owners and developers faced high amalgamation fees (up to 10%) and an auction premium of 2× the circle rate, which made expansion and new projects unviable.

With this reform:

• Amalgamation Charges → Reduced to 1% of the circle rate (earlier 10%)

• Auction Multiplication Factor → Cut to 1.5× circle rate (earlier 2×)

👉 This means lower costs for builders, investors, and property buyers, resulting in more competitive pricing and higher investment inflows into Delhi.

What Has Changed in DDA’s Policy?

Why This Scheme is a Golden Opportunity

For years, Delhi lagged behind Gurugram and Noida because of excessive fees and complicated approval processes. With these reforms:

• Developers can now amalgamate plots at minimal cost.

• Investors get access to more affordable commercial properties in prime Delhi zones.

• Delhi is back in the spotlight as a competitive real estate destination.

This move is expected to bring new commercial hubs, shopping complexes, and mixed-use projects—transforming Delhi’s real estate landscape in the coming years.

Impact on Delhi’s Real Estate Market

The DDA’s decision is a strategic push to make Delhi attractive again for builders and buyers who had shifted to NCR regions. Analysts believe this will:

• Encourage fresh commercial property launches in Delhi.

• Boost demand in key business districts like Connaught Place, Saket, Rohini, and Dwarka.

• Increase the value of Delhi’s real estate assets in the long run.

For investors, this is a golden opportunity to enter Delhi’s commercial property market before prices begin to climb again.

Related Reads

To help our readers stay updated with the latest real estate trends, here are some recommended blogs from TFRG:

• Explore how DDA Premium Housing Scheme 2025 is opening opportunities for ready-to-move flats in Delhi.

• Understand why Gurugram Real Estate is Booming with Dwarka Expressway and how Delhi is now trying to reclaim its edge.

• Read about the 84% Surge in Gurugram Home Prices and what it means for cautious property buyers.

By linking these related insights, you get a complete view of Delhi-NCR real estate trends and how to make smarter property investments.

Final Word: A New Dawn for Delhi’s Real Estate

With the 1% amalgamation fee and reduced auction rates, DDA has removed one of the biggest barriers holding back Delhi’s real estate market. This is not just a cost-saving reform but also a confidence-building measure for developers and investors.

If you are looking to invest in commercial property in Delhi, now is the time to explore opportunities before the market heats up again.

Introduction: A Big Boost for Delhi’s Commercial Real Estate

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