Gold market, hotels feature in DDA’s commercial space push

The Delhi Development Authority (DDA) is planning to start commercial development on six of its large land parcels, totalling over more than 31 hectares across the city, which have been lying unused or encroached upon for several years, officials said on Wednesday.
The plan includes the construction of a gold souk in Dwarka Sector 22, office spaces in two sectors of Rohini, two hotels in Nehru Place and Dwarka Sector 23, and a hospital in Dwarka Sector 9. The smallest of these plots is 0.9 hectares which has been alloted for the hotel in Nehru Place hotel, while the largest is 9.3 hectares in Rohini that has been earmarked for an office complex.
“DDA has several land pockets available at important locations where commercial development is financially viable for us. If we keep such large areas vacant, these are often encroached upon by slums or other unauthorised construction. Meanwhile, commercial complexes, including retail outlets and office spaces, are always in demand and help us fund other subsidised projects. We already have one five-star hotel on lease, and developing more such hotels seems like a good option,” said a DDA official aware of the matter asking not to be named.
The two land parcels for office spaces in Rohini are around 9.38 hectares in Sector 36, and 12 hectares in Sector 30. The commercial centre planned in Dwarka Sector 22 has land area of 3.9 hectares, while the hospital will come up in Dwarka Sector 9 on an area of 3.7 hectares. The second hotel will be planned on a one-hectare plot in Dwarka Sector 23.
DDA is responsible for planning, development and construction of housing projects, commercial lands, land management, land disposal, land pooling and costing in the city.
Commercials developments by DDA in the past include at least 12 district centres, five community centres, five local shopping centres, three convenience shopping centres, 67 community halls and a hotel. However, this is after about five years that the development body is planning to start construction of any kind of commercial property in the city.
Meanwhile, officials said that the urban development body is hiring an expert consultant to conduct a feasibility study for the construction of the aforesaid spaces, and has floated a Request For Proposal (RFP).
“The urban development in Delhi is the responsibility of DDA under the jurisdiction of Ministry of Housing and Urban Affairs. For years, DDA has played a vital role in the orderly yet rapid development of Delhi. Land disposal across various uses by way of sale has been one of the key activities of the Authority. Now, the authority intends to explore new methodologies and ways to create a recurring revenue stream for its financial sustainability. In this context, the authority has identified multiple land parcels for creating revenue continuum for it and carry out transaction advisory for key land parcels,” states the RFP document.
The selected concessionaire will be given two months for conducting site visits, data collection, carrying out preliminary analysis of the project site, conducting market and demand assessment, preparing conceptual plan of the project, preparing financial feasibility and project structuring and preparation of draft bid documents along with assistance with the bidding process.