Centre notifies master plan 2047: Delhi to set new course for real estate growth

The Centre notified the Master Plan for Delhi-2047 (MPD-2047) on August 20, putting in place a new framework for housing, land use, transport, infrastructure and urban redevelopment in the capital. The long-awaited plan is designed to accommodate an estimated population of 3.2 crore by 2047 and envisages around 40 lakh new homes, with affordable housing forming a major part of the housing strategy.

The plan had earlier been structured around 2041, but has now moved to 2047 in line with the broader Viksit Bharat vision. For Delhi’s real estate market, its significance lies more in the combination of higher-density development around transit corridors, a revised land-pooling framework, redevelopment rights for ageing DDA housing and easier building approvals.

“The notification of MPD-2047 by the Centre is a welcome and significant step for Delhi’s real estate sector, as it can unlock additional supply and create a more structured framework for the city’s future growth,” said Ankur Jalan, CEO, Golden Growth Fund.

With Delhi’s population projected to reach around 3.2 crore by 2047, Jalan said the focus on redevelopment, Transit-Oriented Development (TOD), Transferable Development Rights (TDR) and new urban centres could help rejuvenate the city’s real estate landscape while addressing growing demand for housing and commercial space.

Transit corridors could reshape high-density development

One of the most significant changes is the expansion of development potential around mass-transit corridors. Under the revised Transit-Oriented Development (TOD) policy, development is permitted within 500 metres on either side of Metro corridors and within a 500-metre radius of RRTS and railway stations, covering both operational and proposed corridors. The framework covers approximately 207 sq km, with around 80 sq km falling within land-pooling areas, low-density residential areas and unauthorised colonies that were previously outside the TOD framework.

The development threshold has also been lowered. Plots as small as 2,000 sq m can qualify under the new TOD provisions if they are located along an 18-metre-wide road, with permissible Floor Area Ratio (FAR) of up to 500. The framework provides for FAR of 400, with an increase to 500 on payment of additional charges.

The revised TOD framework places a strong emphasis on residential development, with a significant share of permissible development intended for housing. The policy also provides for commercial uses and amenities alongside residential development, while allowing a mix of larger housing units and other permitted uses within the remaining development potential.

Residential high-rises may also be permitted within a 250-metre zone on either side of Urban Extension Road-II, further expanding the scope for higher-density development.

The larger housing push is now central to the plan’s implementation. The Centre has said MPD-2047 envisages around 40 lakh new homes, with TOD, redevelopment and planned urban expansion expected to contribute to additional housing capacity.

Land pooling gets a lower entry threshold

The revised Land Pooling Policy could have an equally important impact on Delhi’s future urban expansion. The minimum sector size required for development has been reduced to 20 hectares, or less than 50 acres, from the earlier 100-acre threshold under MPD-2021.

The policy covers six zones: K-1, L, N, P-II, J and P-I, including parts of Narela. DDA will serve as a primary anchor in the development process, while roads with a right of way of at least 30 metres in land-pooling areas will be developed by the authority. The revised plan permits FAR of 200 for land-pooling development.

The lower sector threshold could enable smaller consortiums to participate in planned development. More importantly, it could help address one of the biggest problems that has held back Delhi’s land-pooling policy: moving large parcels from registration and planning into actual development.

The land-pooling policy has long been associated with a potential supply of around 17 lakh dwelling units, but that is a broader projection attached to the policy rather than a new housing number created by MPD-2047’s TOD provisions.

Older DDA homes get a redevelopment route

The plan also addresses ageing DDA housing in established residential areas.

DDA has approved a uniform policy for old two-storey DDA-built dwelling units on individual residential plots, many of which were developed under MPD-1962 and are now more than 50 years old. These built-up units will receive redevelopment rights on par with vacant residential plots, subject to applicable FAR, ground coverage, height, structural-safety, fire-safety and building bye-law requirements.

Naraina Vihar is among the housing schemes cited in the coverage. The move effectively creates a formal redevelopment route for ageing DDA housing that previously lacked a uniform framework.

Older group-housing societies are also set to get greater redevelopment flexibility. Societies on plots measuring at least 3,000 sq m can be redeveloped, while smaller plots can potentially be combined with adjoining plots to meet the threshold. The permissible FAR is reported at 1.5, subject to applicable norms.

The redevelopment opportunity is particularly relevant in established parts of Delhi, where vacant land for new projects is limited but ageing housing stock offers an existing urban footprint for additional supply.

“We see significant potential in the redevelopment-led transformation of established neighbourhoods. The unlocking of underutilised land, coupled with vertical development and new urban centres with planned infrastructure can create opportunities for modern housing and commercial assets while retaining the character and connectivity of existing locations,” said Ankur Jalan, CEO, Golden Growth Fund.

More development options for farmhouses

MPD-2047 also revises development norms for low-density residential areas and farmhouses.

Farmhouses can be developed on plots of at least 4,000 sq m, or about one acre, provided they are located on roads at least 12 metres wide. The permissible FAR is 20%, with an additional 10% available on payment of charges. The revised framework also introduces an EWS component and allows greater ground coverage, while the maximum permissible height is 12 metres.

The plan also changes conditions for commercial and mixed-use units on wider roads in such low-density areas, bringing more of the city’s peripheral development under a formal planning framework.

Yamuna O-Zone gets a two-part framework

The Master Plan also draws a clearer line around development in the Yamuna floodplain.

The 9,934-hectare O-Zone will be divided into two parts. Zone I, covering around 6,295 hectares and including the riverbed, will remain protected from permanent urban, residential and commercial construction. Zone II will cover the outer sections of the floodplain, where recreational spaces and a proposed 52-km cycle track are planned.

The framework therefore does not open the Yamuna floodplain for conventional real estate development. Instead, it separates the core floodplain from areas where specified recreational uses can be considered.

Building approvals set for a regulatory reset

For developers, one of the more immediate changes could come from amendments to the Unified Building Bye-Laws (UBBL).

DDA has approved changes that seek to de-link prior NOCs from the Delhi Pollution Control Committee, Chief Inspector of Factories, Delhi Jal Board and Forest Department for obtaining building permits. The stated objective is to reduce procedural delays and speed up project approvals.

The change could reduce some of the procedural friction involved in project approvals, although its practical impact will depend on implementation of the revised provisions.

Why is MPD 2047 important?

Delhi’s housing market is facing a supply mismatch that the existing planning framework has struggled to address. Affordable housing has steadily lost ground in new launches. With limited scope for high-density development within Delhi, much of the region’s housing growth has shifted to neighbouring NCR markets.

The consequences are increasingly visible at the city’s edges. More than 3,500 hectares of land in Outer Delhi has come under unauthorised construction, according to internal DDA assessments. The spread stretches from Burari and Narela in the north to Najafgarh and Chhawla in the southwest, highlighting the gap between rising housing demand and the availability of planned development land.

That is where MPD-2047 becomes important. Its focus on land pooling, transit-led density, redevelopment, Green Development Areas and clearer regulations for the Yamuna’s O-Zone is aimed at bringing more land and housing into a structured planning framework. The objective is to shift growth from unplanned peripheral expansion towards higher-density, infrastructure-led and regulated development within Delhi.