How will the new government policy impact real estate market in Delhi?

In a major announcement this month, the Delhi government lifted all bans and restrictions imposed by the Revenue Department in 2011 on the sale of leasehold properties. These restrictions were imposed as there were many reports of commercial activities being carried out in leasehold properties in some colonies in the national capital. As a result of this latest policy change and move by the Delhi government, all the properties that were registered through power of attorney can now be legally sold or purchased without any legal hassles.

The circular issued by the Revenue Department said, “It is clarified to all Sub-Registrar that under Section 17 (1-A) of the Registration Act, the documents containing contract to transfer for consideration any immovable property is compulsorily registrable document if having been executed after the commencement of Registration (Amendment) Act 2001, (w.e.f. 24.09.2001).” It also said, “An agreement to sell in respect of immovable property is covered under section 17 (1-A) of the Registration Act and is a valid document to be registered if so desired by the parties and as such all these documents cannot be refused by Sub-Registrar.”

This move by the Delhi Government will have a huge impact on the real estate market in Delhi and NCR region. Given below are some of the expected effects of this policy change:

A right move by the government, as the transactions were happening anyways

This policy change by the Delhi Government is welcomed by almost all sections of the society, especially as transactions were occurring through general power of attorney in spite of the restraints laid down by the Revenue Department of Delhi.

This decision by the Delhi Government likely to benefit millions of property owners

Property owners in major localities such as Dwarka, Rohini, Janakpuri and Vsantkunj had been demanding this move of relaxing the norms for some time now, and the decision has been appreciated heartily by all property owners as it would facilitate them to sell their property easily.

DDA is confident that this move by the Government will help all leasehold property owners in a substantial way. Not only that, this policy change may provide the much needed impetus to the real estate market in the NCR region and hence can lead to price hike in the long run.