In a far-reaching policy initiative, the central government has split the union ministry of housing and urban affairs (MoHUA) into two separate departments – the department of urban development and the department of capital development. While the department of urban development will be responsible for the ministry’s broader urban policy portfolio, the department of capital development will oversee matters relating to the National Capital Region and key central government infrastructure. This strategic restructuring is aimed at according dedicated attention to the Delhi-NCR region as a distinct urban segment demanding specific focus. Industry experts present their views on the likely impact of this move in transforming real estate in this largest region.

Vinod Behl 

Harsh Vardhan Bansal, Chairman, CII, Delhi & President NAREDCO Delhi

The decision of the Ministry of Housing & Urban Affairs (MoHUA) to create a dedicated department to oversee urban development in the capital region is a right step at the right time to not just see focused and speedy development in the region but also to achieve the larger goal of Viksit Bharat. Delhi has been undergoing lot of expansion and growth but it was not getting due attention earlier under the unified ministry of housing and urban affairs.

Multiplicity of authorities has been a major hurdle with Delhi. But now an exclusive department for Delhi and NCR Region will see much better coordination among various authorities, in turn creating a conducive environment for growth. Today last mile connectivity is a big problem in Delhi. This new policy move will address this problem. The newly created dapital development department under MoHUA , will create guidelines for enhancing existing services. It will help speed up the implementation of Delhi Master Plan 2042 and under this, transit-oriented policy, land pooling and green development will be put on fast track. Today, redevelopment of old residential societies is a big opportunity in Delhi. It will get a big boost now with higher FAR and modern facilities. Similarly, 1150 unauthorised regularised colonies and 650 JJ clusters will see rapid development.

Shalin Raina, MD -Residential, Cushman & Wakefield  

The reorganisation of the Ministry of Housing and Urban Affairs is a significant development for Delhi-NCR. A more focused institutional framework for the region is expected to support long-term planning and development priorities that underpin economic and real estate growth. 

For the residential market, continued progress in infra and urban development remain an imortant driver of buyer confidence and location attractiveness. The enhanced focus on Delhi-NCR is likely to support growth across both established and emerging residential corridors, further strengthening the region’s appeal among homebuyers and investors.

Akshay Taneja, CEO, TDI

The creation of the Department of Capital Development and the Department of Urban Developmement under the Ministry of Housing and Urban Affairs is a significant policy move that can bring sharper accountability and specialised focus to India’s urban growth agenda. For the real estate and infrastructure sector, this restructuring can strengthen regulatory implementation including RERA and other urban development frameworks, while addressing challenges caused by fragmented institutional responsibilities and overlapping mandates. 

For Delhi-NCR, the dedicated focus on capital development can improve coordination between key agencies such as DDA, DMRC and other nodal bodies, enabling more efficient land acquisition, faster approvals and better execution of infrastructure projects. This is particularly important for a region where where infrastructure expansion and urban planning are closely linked to economic growth The sector continues to face approval delays, complex land processes, capacity constraints within urban bodies, rising development costs and financing challenges. A more focused governance structure can help create greater transparency, improve decision making and provide a more predictable environment for sustainable real estate and infrastructure development. 

Ananta Raghuvanshi, Chairperson, NAREDCO Mahi

It is a welcoming decision on the part of Ministry of Housing & Urban Affairs (MoHUA) to separate national capital governance from broader national urban programmes with an aim to revamp urban development in the capital region .As the newly created Department of Capital Development has the mandate to exclusively focus on the affairs of the National Capital Territory (NCT) and the National Capital Region(NCR) , it will lead to effective and efficient functioning ,providing the much needed momentum to match the PM Modi’s vision of Viksit Bharat. It will have a catalytic impact on the urban development ecosystem in Delhi-NCR.

It is equally heartening that a dynamic and well-meaning IAS officer who has been working as Additional Secretary in MoHUA, has been appointed as the first secretary to lead the newly formed Department of Capital Development. As a chairperson and Founding Member of NAREDCO Mahi, I have worked very closely with Ms.Thara for the promotion of real estate and urban development. Though the success of this landmark policy initiative depends largely on its effective implementation, I am quite confident that under her leadership, it will serve its desired purpose.

Sahil Kapoor, Director, Keller Williams, Delhi-NCR

The creation of a dedicated department for Delhi-NCR is more than an administrative decision. It is an acknowledgement that the region has outgrown fragmented governance. People do not experience NCR in parts; they live in Gurgaon, work in Noida and build businesses across the region. 

Our policies should reflect that reality, If this initiative delivers seamless coordination between states, it could become one of the most important reforms for urban development in the NCR. Strong infrastructure creates strong cities and strong cities create lasting real estate value. The opportunity is immense, but as always, execution will define the legacy of this decision.