DDA Draft Plan: 40 Lakh New Homes Needed for Delhi by 2047

Delhi needs roughly 40 lakh new homes by 2047 to house a projected population of 32 million, according to the draft Master Plan of Delhi (MPD) approved by the Delhi Development Authority (DDA). The plan, which the Centre is expected to approve within a week, lays out a strategy built around small-format housing, land pooling, and transit-oriented development (TOD), news agency PTI reported, citing officials.

The city's population is expected to grow by 10 million from its current estimate, requiring nearly 4 million homes. The plan projects that growth will demand three times the current power generation capacity and double the current solid waste management capability. Housing demand from 2011 to 2047 is estimated at roughly 40 lakh dwelling units, based on an average household size of 4.5 people. In 2011, the last census year, Delhi had 3.11 million houses.

The housing strategy targets supply through planned development in Land Pooling Areas, TOD Zones, High Density Corridors, and Low Density Areas (LDA), with private-sector participation. Land Pooling and TOD zones alone have potential to supply roughly 30 lakh dwelling units, officials said.

The plan also addresses existing stock. In-situ rehabilitation of slums and JJ clusters is proposed, alongside improvement and regularisation of unauthorised colonies. "In unplanned areas, the housing strategy shall prioritize inclusive development approaches that minimize displacement while improving housing conditions and access to basic services," the plan states. Regularised unauthorised colonies will be permitted to undertake regeneration schemes, which officials said will "facilitate proper road network, open spaces, facilities and accessibility to emergency vehicles, fire tenders, etc." The draft notes that a large number of residents in those colonies live in rental accommodation, and regeneration would increase rental housing supply.

Limited land availability has pushed the DDA toward a small-format model. The plan calls for "development of small format housing with dwelling unit (DU) size of 25-60 sqm carpet area," designed to maximise supply on constrained sites. Affordable Rental Housing Complexes will be permitted separately or as part of new projects. Incentives for the private sector to build affordable rental housing are also proposed, along with hostels and dormitories for students, labour, and working men and women.

Existing planned areas get attention too. The regeneration of group housing – including DDA flats, Central Government Health Scheme housing, General Pool Residential Accommodation, and employer housing – is meant to "enable optimal utilisation of land to create new housing and improve the quality of existing housing stock," officials said. Resettlement colonies, which face issues of accessibility and poor construction quality, may also be taken up for regeneration.

To curb future unauthorised construction, the plan introduces disincentives: prohibitive property tax, higher electricity charges, and higher water charges levied by local bodies on illegal development.

The 'Lutyens Bungalow' zone and Civil Lines Bungalow areas will continue under approved plans, with the basic character of the Civil Lines Bungalow area maintained. The plan also encourages "eco-friendly materials, innovative construction technology and disaster resilient structures" for sustainability and timely delivery.

For investors watching the broader stock market analysis, the policy signals regulatory clarity on land use in the National Capital Region, though no specific listed developers or real estate investment trusts (REITs) are named in the plan.