Over 100 high-value property transactions in Lutyens’ Delhi may finally be registered this year as the Land and Development Office (L&DO) prepares to approve them under the Union housing and urban affairs ministry. One significant deal includes the Rs 1,100-crore transaction for the first official residence of Jawaharlal Nehru, located at 17 York Road (currently Motilal Nehru Road), which has been on hold due to L&DO’s suspension of converting leasehold properties to freehold.
The office has now decided to use Delhi government circle rates for calculating conversion charges starting January 1, 2026.
“This is a long-overdue and positive development. Linking leasehold-to-freehold conversion charges to Delhi government circle rates will offer much-needed clarity for transactions in Lutyens’ Delhi,” stated Amit Goyal, Managing Director, India at Sotheby’s International Realty.
He further added, “In the past year, many significant deals were delayed solely because the L&DO NOC (no-objection certificate) was pending.”
This office’s new decision will allow the registration of such properties, with most transactions expected to fall between Rs 50 crore to Rs 300 crore.
“This change is set to unlock stagnated high-value registrations and restore confidence in one of India’s most exclusive residential markets,” Goyal mentioned. “A revival of transactions in this elite micro-market will also have favorable fiscal impacts for the Delhi government, reaffirming Delhi’s status as a prime hotspot for ultra-luxury residential demand.”
Additionally, this move is anticipated to stabilize prices in L&DO colonies like Defence Colony and Jangpura, maintain Lutyens’ Delhi’s value due to limited availability, and may support apartment pricing in adjacent areas, as per industry experts.
“While we await detailed SOPs, this initiative will initially enhance transaction liquidity, followed by gradual price stabilization,” remarked Rohit Chopra, founder of SouthDelhiPrime.com, a boutique consultancy. “We do not expect sudden price fluctuations; pricing in Lutyens’ Delhi is primarily influenced by scarcity and ownership structure. The clarity on conversions enhances execution, but not necessarily affordability.”
The delay in obtaining NOC led to significant revenue loss for the government, as conversion charges and stamp duties were not collected due to the halt in property transactions in these regions.
In July 2022, the L&DO directed the Delhi government’s revenue department to cease property registrations without an NOC from their office.
Most properties in Lutyens’ Delhi fall under the jurisdiction of L&DO and are leasehold. Buyers are required to pay both conversion charges and property tax; however, many were not doing so, prompting intervention from the ministry.
As per a July communication from L&DO, there are approximately 57,389 residential, 1,597 commercial, 1,430 institutional, and 110 industrial units under its purview in Delhi.
