The Delhi Development Authority (DDA) has witnessed a spectacular financial triumph in its latest land sale, more than doubling its revenue expectations. The 20th e-auction, held from November 21 to 27, concluded with the authority securing a whopping ₹1,494.7 crore in successful bids against a combined reserve price of ₹629.2 crore for 81 plots. This marks a staggering 138% increase over the base price, signaling robust investor confidence in Delhi's real estate market.
Category-Wise Breakdown: Industrial Plots Lead the Surge
The auction featured a diverse mix of land categories, including residential, group housing, commercial, industrial, and institutional plots. The most dramatic performance was seen in the industrial segment, where 41 plots fetched ₹272.4 crore against a reserve price of just ₹53.1 crore. This represents an extraordinary increase of 413%, highlighting intense demand for industrial space in the capital.
Other categories also posted impressive gains. The residential segment saw 17 plots with a reserve of ₹52 crore attract bids worth ₹166 crore, a jump of 219%. For commercial plots, 10 parcels secured ₹106 crore against a reserve of ₹44.3 crore, which is 139% higher. In the institutional category, 10 plots drew bids worth ₹307.7 crore, surpassing the reserve price of ₹224.8 crore.
Dwarka Group Housing Plots Spark Fierce Bidding
The strongest competition, however, was observed in the group housing segment. Two prime plots located in Sector 27, Dwarka, became the centerpiece of the auction. With a combined reserve price of ₹254.9 crore, these plots eventually fetched a massive ₹642.5 crore. Officials linked the heightened interest in Dwarka to recent infrastructure upgrades in the area, making it a more attractive destination for developers.
Policy Reforms by LG Saxena Drive Unprecedented Response
Senior DDA officials attributed the overwhelming success of this e-auction to a series of strategic reforms introduced on the directions of Lieutenant Governor V. K. Saxena. A key change was the revision of the reserve price multiplication factor. Previously, reserve prices were fixed at twice the circle rate, creating a high entry barrier.
Following a review by a task force set up by the LG in December 2024, this factor was reduced. For commercial plots, it was cut from 2 to 1.5 times the circle rate, and for institutional land, it was lowered from 0.75 to 0.6. "The previous policy created a high entry barrier. Lowering the factor widened participation and sparked competition across categories, allowing market forces to determine realistic prices," explained an official.
This policy shift was particularly effective for commercial plots, which had struggled to find buyers in earlier auctions. The improved turnout is a direct result of this corrective measure. Officials also noted that extensive ground surveys, stakeholder consultations, and need-gap analyses across different zones contributed to the robust rise in bids.
Conclusion: A Model for Future Land Disposals
The resounding success of DDA's 20th e-auction sets a new benchmark for land disposal in the national capital. By adopting a more market-friendly approach and listening to stakeholder feedback, the authority has unlocked significant value from its land assets. The revenue of ₹1,494.7 crore provides a major boost to its coffers and demonstrates that pragmatic policy reforms can yield exceptional results, paving the way for similar strategies in future urban development projects.
