Developers Urge Government to Allow Larger Homes Under Delhi Transit Policy
The Delhi chapter of the National Real Estate Development Council (NAREDCO) has urged the Union government to relax affordability norms under Delhi’s new Transit-Oriented Development (TOD) policy to allow for the construction of larger homes. In a letter sent to the Ministry of Housing and Urban Affairs (MoHUA) in May, the developers requested that the policy's 100-square-metre size limit for residential units apply to carpet area instead of built-up area.
The TOD policy, which was notified by the Union government in April, aims to maximize housing, commercial, and recreational spaces near public transport facilities, opening up approximately 207 square kilometres of land near Delhi Metro corridors for development.
Under the current guidelines, developers seeking a higher floor area ratio (FAR) must allocate at least 65 percent of the permissible FAR to residential units measuring less than 100 square metres of built-up area. This rule is intended to ensure the availability of smaller, affordable housing options in the city.
However, NAREDCO argued that built-up area, which includes wall thickness and balconies, is typically 30 percent larger than carpet area. The industry body stated that using the Real Estate Regulatory Authority (RERA) carpet area as the benchmark would align with current guidelines and provide standardization across the industry.
The developers also noted that applying the limit to carpet area would allow them to build practical 2.5 BHK and 3 BHK configurations within the 100-square-metre threshold, which they argue better serves the needs of middle-income families in Delhi. According to data from real estate consultancy Anarock, the share of affordable housing under Rs 80 lakh in Delhi-NCR fell from 72 percent of the housing inventory in 2019 to just 15 percent in 2024.
In addition to the residential size rules, NAREDCO sought greater flexibility for commercial and neighbourhood amenities. While the policy mandates that at least 10 percent of the permissible FAR be reserved for neighbourhood commercial use and facilities, the developers requested this be changed to "up to 10 percent" to better adapt to market demands and site conditions. They also requested that the remaining 25 percent FAR earmarked for larger homes, offices, or studio apartments be modified to "up to 25 percent" to allow for more planning flexibility.
Meanwhile, the Delhi Development Authority (DDA) recently opened the application process for builders to undertake TOD projects through its Online Building Permit System, marking the official operational rollout of the policy.
