Naredco proposes changes in Delhi’s TOD policy

New Delhi: India’s apex real estate body, the National Real Estate Development Council, has proposed changes to the Delhi Development Authority’s newly introduced Transit-Oriented Development policy, arguing that relaxing restrictions on apartment size, pricing, parking and mandatory commercial space would help spur residential and commercial development in the capital.

Under the Transit-Oriented Development (TOD) policy, planned, high-density and mixed-use development will be promoted within a 500-metre radius around Metro and RRTS corridors, covering an area of approximately 207 square kilometres.

NAREDCO has suggested that the policy should also include national highways and expressways.


“While the policy was long awaited and will give a much-needed boost to Delhi’s real estate sector, we recently met Union Minister for Housing and Urban Affairs Manohar Lal and requested some minor changes. The restriction on the size of the unit should be as per the definition of RERA carpet area, and there should not be any price cap; otherwise, developers will be hesitant to undertake projects,” said Harsh Vardhan Bansal, President of NAREDCO Delhi.

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The policy enables the development of smaller plots of 2,000 sq. m. under TOD provisions.

A maximum FAR of up to 500 is permitted in TOD zones on plots measuring 2,000 sq. m. and above, with an 18-metre road. Of this, 65% of the total permissible FAR has been mandatorily earmarked for residential use, with units having a built-up area of 100 square metres, thereby providing for affordable housing along the Metro corridor.

“TOD cannot succeed through proximity alone. It must be supported by a rich mix of uses and a spatial structure that encourages constant activity. At East Delhi Hub, we approached this through what we describe as ‘organic density.’ Instead of treating density as a flat, uniform condition, it is distributed vertically, creating layered neighbourhoods that function at multiple levels,” said Dikshu C. Kukreja, Managing Principal at C.P. Kukreja Architects.

“The future of Indian cities lies not in endless expansion, but in intelligent consolidation, where infrastructure, architecture and public life are seamlessly aligned,” Kukreja said.

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The current policy has a corridor-based approach and opens up an area of 207 sq. km. (500 metres on either side of Metro corridors and within a 500-metre radius of RRTS and railway stations), primarily for the provision of affordable housing through planned development and redevelopment.

Of this 207 sq. km., about 80 sq. km. of land under land pooling, low-density residential areas and unauthorised colonies, which were excluded under the earlier TOD policy, have now been brought under the purview of the new policy.

“Transit-Oriented Development is not only about increasing density around transit corridors. It is about creating more efficient, accessible and future-ready urban ecosystems where planning, infrastructure and housing evolve together. Delhi’s long-term growth will depend on how effectively these elements are integrated through coordinated policy and implementation,” said Anand Kumar, Chairperson of Delhi RERA.

Of the remaining 35% of FAR, 10% is to be used for commercial and amenity provisions for the housing area. There is flexibility in the use of the remaining 25% of FAR, which can be allocated to larger housing units, office space, guest houses and studio apartments.

“The TOD framework has the potential to fundamentally change how Delhi grows over the next decade by aligning urban expansion with mass transit infrastructure. If implemented effectively, it can improve redevelopment viability, reduce infrastructure stress, and create more organised, connected and sustainable urban districts,” Kumar said.