The Delhi Development Authority (DDA) has implemented essential decisions to enhance commercial development and investment in the capital during a meeting held on Friday. It has been resolved that the commission fees for commercial property will be slashed from 10% to just 1%.
Why has DDA introduced these changes?
Previously, the commission fees in Delhi were quite high, leading many developers to start projects in neighboring areas like Noida and Gurgaon, where such fees are lower.
By lowering the fees now, it is expected that developers will embark on large projects within Delhi, thereby boosting both employment and investment.
DDA has also announced its intention to launch a premium housing scheme soon, providing people with more options for modern and better homes.
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Auction of commercial properties in Delhi now cheaper, increasing appeal for investors
DDA has made a major decision to make the auction process of commercial properties more attractive. Previously, DDA set the auction price at twice the circle rate, but it has now been reduced to just 1.5 times the rate.
With this decision, more investors are expected to come forward, infusing new life into Delhi's real estate market.
On what basis was this change made?
These decisions have been based on the recommendations of the government-industry joint task force set up by Lieutenant Governor VK Saxena. The task force reported that high circle rates and a rapid auction multiplier in Delhi were diverting investors and developers towards cities like Noida and Gurgaon, where property market rates are more practical.
What is the current expectation?
Following these changes, it is anticipated that purchasing and investing in commercial properties in Delhi will become more cost-effective, thus promoting jobs and economic activities.
