More than 100 pending high-value real estate transactions in Lutyens’ Delhi could be registered this year with the Land and Development Office (L&DO) under the Union Ministry of Housing and Urban Affairs, which will give its approval. A Rs 1,100 crore-plus deal of the first official residence of the country’s first Prime Minister Jawaharlal Nehru at 17 York Road (now Motilal Nehru Road) in the Lutyens’ Bungalow Zone is among the deals that have been put on hold as L&DO had halted the process of converting leasehold properties into freehold properties.
The ministry has now decided to use the Delhi government’s conversion charges to calculate the conversion charges from January 1, 2026.
“This is a long-awaited and welcome step. The decision to link leasehold to freehold conversion charges with Delhi government rates brings much-needed clarity and predictability to Lutyens’ transactions in Delhi,” said Amit Goyal, Managing Director, India, Sotheby’s International Realty. “In the past year, several major deals have stalled purely due to the absence of an L&DO NOC (no objection certificate),” he added.
The agency’s decision resumes the registration of such properties. Most transactions will range from Rs 50 crore to Rs 300 crore.
“This change should unlock stalled high-value registrations and restore confidence in one of India’s tightest housing markets,” Goyal said. “A revival of deal flow in this prestigious micro market will also have positive fiscal implications for the Delhi government, while helping to strengthen Delhi’s position as a destination of choice for ultra-luxury residential demand.”
The move will also help stabilize prices in L&DO colonies like Defense Colony and Jangpura, keep Lutyens’ Delhi firm amid scarcity, and can selectively support apartment prices in nearby areas, industry insiders said.
“While detailed SOPs are awaited, this move will first improve transaction liquidity, followed by gradual price stabilization,” said Rohit Chopra, founder of SouthDelhiPrime.com, a boutique consultancy. “This is not expected to lead to sudden price increases or corrections. In Lutyens’ Delhi, price is determined by scarcity and ownership profile. The clarity of the conversion improves execution, not affordability.”
Due to the delay in NOC, there was a huge loss of revenue to the government due to loss of property conversion charges and stamp duty as real estate transactions in these places have stopped.
In July 2022, L&DO had issued instructions to the Delhi government’s tax department, asking it not to register properties without an NOC from the department.
Most properties in Lutyens’ Delhi fall under L&DO and are leasehold properties. The buyer must pay conversion costs and property taxes, but in many cases these costs were not paid, leading to the ministry’s intervention.
According to a July letter from L&DO, Delhi has about 57,389 residential, 1,597 commercial, 1,430 institutional and 110 industrial units under its jurisdiction.
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