Constructing or reconstructing a property in Delhi: Key points to consider

The burgeoning population in Delhi and the influx of people from other cities have driven up housing demand. With limited land availability, especially in core areas, most construction and real estate development has shifted to cities in the National Capital Region (NCR), such as Gurgaon and Noida. However, government-led redevelopment schemes and land pooling policies provide opportunities for new construction and reconstruction, especially of older buildings. Before undertaking any construction project, it is crucial to understand the local regulations and other construction norms. This ensures legal compliance and building safety. In this guide, we explain the things to consider for constructing or reconstructing a property in Delhi.

Things to consider before constructing a property in Delhi

If you are planning to construct or reconstruct your house, it is important to be aware of the basic process that must be followed. This also involves the key legal requirements that must be followed.

#1. Set a realistic budget

Before embarking on a construction project, it is important to set a budget by considering the various expenses one might incur. Being ready with financials helps avoid unnecessary expenses. Some of the major costs to consider include:

• Construction materials and labour
• Legal costs such as stamp duty and registration fee
• Architectural and design fee
• Government-related costs such as permits, utility connections, etc.
• Interior design and home-related expenses

In addition to the above costs, one should reserve at least 10% of the budget for unforeseen expenses, such as weather-related delays, material shortages, etc. There are also hidden costs such as taxes levied by the state and local government including stamp duty and registration charges, property taxes, etc., utility installation expenses, etc. Estimating costs beforehand and judiciously allocating resources often helps achieve a cost-friendly construction. Opting for a home loan for house construction is a smart way to manage the construction costs.

#2. Legal verification

Conduct legal due diligence before setting out on a house construction project. This involves verifying land use and ensuring that it is residential land in compliance with the Delhi Master Plan (MPD-2041). The Delhi Development Authority (DDA), the land-owning agency, prepares the master plan, a blueprint for future city growth. In case of an agricultural land, especially land outside city limits, you may have to apply for land conversion by approaching DDA or the relevant authority. Further, review the land-related documents to confirm whether the title is clear. That is, the property should not have any encumbrances – unpaid dues, legal claims, etc. Moreover, constructing on land that is not part of the government-approved layout may expose the project to demolition or other legal consequences for violating zoning laws.

#3. Permissions for development

Under the law, any development or redevelopment work cannot be carried out without approval for the layout plan from the relevant local authority. Even for additions or alterations to an existing building, a separate building permit must be obtained. However, any alterations do not violate any provision, there is no need to obtain any permit. These include changes such as plastering or cladding, repairs, roof renewal, flooring or reflooring, whitewashing or repainting, landscaping, etc. 

In Delhi, the process of obtaining approvals for building plans has been digitalised. Citizens can access the Delhi Online Building Plan Approval System (OBPAS) website and submit their applications along with supporting documents. 

Key documents required for obtaining building plan approvals include:

Documents from the applicant

• Duly filled application form
• Identity and address proof
• No-objection certificates (NOCs) from relevant authorities, such as the fire department

Building and technical documents

• Complete building plan, including drawings, layout, etc. 
• Architect’s license copy
• Structural stability certificate from a licensed structural engineer

Land ownership documents

• Encumbrance certificate 
• Khata certificate

• Survey sketch/ revenue sketch

Other approvals include environmental clearance in case the plot is located in an environmentally sensitive zone. 

Before starting a construction project, the relevant sanctioning authority must be notified. In Delhi, a citizen may be required to contact any of the following authorities:

• Delhi Development Authority (DDA)
• Public Works Department (PWD), NCT of Delhi
• Municipal Corporations of Delhi for various urban services
• New Delhi Municipal Council (NDMC) (for Lutyen’s Delhi or NDMC area)
• Delhi Jal Board (DJB) for water supply and other services
• Delhi Real Estate Regulatory Authority (RERA)
• Relevant electricity distribution company for electricity connection

FAR (Floor Area Ratio) and building norms

The Floor area ratio (FAR in real estate) or floor space index (FSI) is a numerical figure set by the government authority (DDA in Delhi) that specifies the maximum floor space that can be constructed on a piece of land. The government, by setting the FAR, limits the size of construction to ensure planned urban development and minimise pressure on land. Before starting a home construction in Delhi, make sure to check the FAR for residential plots, which is based on the plot size and location. 

The FAR is calculated using the formula: 

FAR = Total covered area of all the floors/ total area of the plot

In addition to the FAR, one should be aware of the standard rules and regulations for construction as defined under the Delhi Building Bye Laws. These laws define standards for building height, setback, walls, basement and other key elements of a residential building.

Process of reconstructing a property in Delhi

Redevelopment of a residential building primarily involves demolishing the existing structure. There are key things to consider before initiating a redevelopment project in Delhi.

Seek permissions and NOCs

Approach the relevant authority under the jurisdiction of which the property is located (MCD, NDMC, etc.) for permits. There may be other NOCs required from agencies, such as the fire department. Further, an NOC from the housing society may be required if the property is located within a gated society.

Property with existing tenants or residents

In case the property is occupied, the residents must be provided with temporary rental homes. Proper legal process must be followed.

Housing.com News Viewpoint

House construction or redevelopment is a lengthy and complex process and requires adherence to the local regulations. Moreover, after construction is completed, the builder must follow post-construction processes, such as obtaining the completion certificate (CC) and the occupancy certificate (OC) from the MCD. Once the OC is obtained, the property is legally ready for occupancy. Violation of any construction norms may have legal consequences. In case of any confusion regarding local regulations, it is better to consult a legal professional.

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