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Delhi: DDA to allocate land in Nehru Place and Dwarka for five-star hotel development

#Taxation & Finance News#India#Delhi
Last Updated : 5th May, 2025
Synopsis

The Delhi Development Authority (DDA) has announced plans to allocate two valuable land parcels, one in Nehru Place and another in Dwarka, for the construction of five-star hotels. This move is part of the DDA's strategy to maximise revenue from underutilised land through a 55-year lease arrangement. The land, covering around 2.2 acres in Nehru Place and over 2.5 acres in Dwarka, will be developed according to the Master Plan for Delhi (MPD) 2021 and Unified Building Byelaws 2016. This forms part of DDA's broader development agenda, which includes various commercial initiatives.

As part of its strategy to create sustainable revenue from underutilised land, the Delhi Development Authority (DDA) recently announced that it would be allocating two prime land plots for the construction of five-star hotels. The move is expected to provide a boost to both Delhi's tourism industry and commercial infrastructure.


The first plot, located in the bustling Nehru Place area of South Delhi, spans approximately 2.2 acres, while the second plot is situated in Dwarka Sector 23 and covers over 2.5 acres. Both plots are currently vacant, which allows for quicker initiation of development projects.

The DDA intends to offer these plots under a 55-year licence fee arrangement, encouraging private developers to take on the projects while providing the DDA with a consistent revenue stream over the long term. This is part of a broader effort by the DDA to optimise land use across the city, fostering public-private partnerships to maximise the value of its properties.

In terms of construction regulations, the development will be governed by the Master Plan for Delhi (MPD) 2021 and the Unified Building Byelaws 2016. The Nehru Place plot will be subject to a Floor Area Ratio (FAR) of 325, with ground coverage of 50%. Meanwhile, the Dwarka site will permit an FAR of 375, with 40% ground coverage. Developers will also be required to adhere to the Ministry of Tourism's star rating guidelines to ensure the hotels meet the standards expected of five-star establishments.

The DDA is set to release a Request for Proposal (RFP) for the hotel projects on May 5, with a site visit opportunity for interested developers available between May 5 and June 18. The final date for submitting queries has been set for May 20, while the deadline for submitting bids will be June 19.

This initiative is part of a larger, ongoing effort by the DDA to develop a variety of commercial spaces across Delhi. Plans for these sites include not only luxury hotels but also other significant developments such as a gold souk and hospital in Dwarka, office spaces in Rohini, and a multi-integrated stadium and sports complex in Narela. These projects, according to DDA, aim to enhance Delhi's infrastructure and contribute significantly to the city's economic growth.

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