Cabinet approves redevelopment of 7 govt colonies in Delhi at Rs 32,835 cr; to impact rentals in NCR

Union Cabinet chaired by Prime Minister Narendra Modi on Tuesday has approved redevelopment of seven General Pool Residential Accommodation (GPRA) colonies in New Delhi at total estimated cost of Rs 32,835 crores. The redevelopment will take place in Sarojini Nagar, Netaji Nagar, Nauroji Nagar through National Buildings Construction Corporation Limited (NBCC), while Kasturba Nagar, Thyagraj

Nagar, Srinivaspuri and Mohammadpur will be redeveloped through Central Public Works Department (CPWD). The redevelopment project will replace the existing housing stock of 12,970 dwelling units of Type I to IV with Build Up Area (BUA) of approx. 7.49 lakh sqm with approx. 25,667 dwelling units of Type II to VI with BUA of approx. 29.18 lakh sqm. with supporting social infrastructure facilities.

The project will also develop government office accommodation for nearly 2.42 lakh sqm at Netaji Nagar and will be completed in five years in a phased manner.

Ministry of Urban Development has moved a proposal for redevelopment of existing old dilapidated housing colonies to augment the housing stock by making optimum utilization of land resources as per Master Plan Delhi (MPD) – 2021 and using modern construction technology with green building norms and in-house solid / liquid waste management facilities.

Experts feel the government’s move to redevelop these 7 government colonies into over 25,000 flats approximatley will help filing shortages of government flats, but will not affect the prices in Delhi-NCR. Santosh Kumar, CEO – Operations and International Director, JLL India said,”I don’t see housing prices in Delhi-NCR to have an impact, however, the move will definitely affect the rental prices.