Mix land use Residential areas in Delhi – Commercial Activity

Different municipalities and DDA has approved mixed land-use along many residential streets of Delhi in late 2006, which allows offices, retail shops, eateries, and entertainment outlets in residential areas with certain restrictions.

Any residential property owner along these notified streets who wish to use part of their property for commercial purpose needs to pay annual mixed use charges for the period they want to use the premise under mixed use. Property owners also have an option of paying life time charges which are comparatively discounted.


Property Location Annual Charges -Retail Shops Annual Charges -Other Activities One Time Charge – Retail Shops One time charge – Other Activites
Category A & B 767/SQ MT 383/SQ MT 6136/SQ MT 3064/SQ MT
Category C & D 511/SQ MT 226/SQ MT 4088/SQ MT 2048/SQ MT
Category E F & G 192/SQ MT 96/ SQ MT 1536/SQ MT 768/SQ MT

Mixed land use residential areas in Delhi

Other than the conversion charges/mixed use charges, property owner’s are also liable to pay a onetime parking development charge which vary anywhere between 70,000/ 50 sq mt to 210,000/ 50 sq mt depending on the which category does the property fall in.

Details of all notified streets can be found at GNCTD notifications dated 15/9/2006 and 12/04/2007, Notification pdf

More clause wise details at MPD 2021 MDP 2021 – PDF

  1. MIXED USE STREETS: – See clause 15.3, 15.4, 15.5, 15.6.1, 15.6.2 & 15.9 of MPD-2021.
  2. COMMERCIAL STEETS: – See clause 15.12 of MPD-2021.
  3. SMALL SHOPS: – See clause 15.6.3 & 15.9 of MPD-2021.
  4. OTHER ACTIVITIES: – See clause 15.7 & 15.9 of MPD-2021.
  5. PROFESSIONAL ACTIVITES: – See clause 15.8 & 15.9 of MPD-2021.
  6. GROUP HOUSING: – See clause 15.3.2 (4), 15.6.3 & 15.9 of MPD-2021.

So far, 2,183 roads were declared either mixed land, commercial or pedestrian shopping street in sept 2006, another 355 streets were added to the list in April 2007. Around 350 streets are awaiting regularization for mixed land use. Different municipalities earn over 1000 CR in revenue from conversion charges annually.

Broadly, what is allowed and whats not:

Retail: Twenty four types of business area allowed from shops measuring 20 sq mt in size. These include vegetable/flower shop, bakery, grocery, dairy outlet, book shop, photocopier, PCO, cyber café, LPG booking, flour mill, meat and fist shop, pan shop, hair salon, laundry, chemist, sweet shop, optician, tailor, electrical/electronic repair, cycle repair, garment shop, ATM, ration shop.

Professional services: Lawyers, CA, company secretaries, doctors, media professionals, architects etc.

Other activities: Pre primary schools, nursing homes, diagnostic labs, clinics, wellness centers, guesthouses, banks, coaching centers, NGO’s, vocational training centers etc.

Whats not Allowed: Warehouses, liquor vends, printing and dyeing units, auto workshops/repair shop, building material shop, battery charging and any other polluting business.

Mixed use policy allows property owners to earn commercial returns for a portion of total FSI, however one needs to be careful while looking out for prospective tenants for their area. A thorough knowledge of guidelines will not only ensure maximum returns and a trouble free tenancy but also keep pesky authorities at bay.

This write up is for broad information purpose only, please check with local municipal corporations for any recent changes in charges or any modification in policy what so ever.