In a move poised to reshape the residential skyline of Delhi, the Centre is finalising a policy that would allow high-rise residential buildings directly linked to metro stations via elevated walkways. Union Housing and Urban Affairs Minister Manohar Lal Khattar made the announcement during the NDTV Real Estate Conclave 2025 held Thursday.
According to Khattar, the new infrastructure described by him as a "hanging way" would let residents access public transit without relying on roads, offering a long-overdue solution to Delhi's persistent surface congestion.
For Delhi, Khattar announced that they will soon introduce a policy to construct high-rise buildings. High-rise buildings will be connected directly to metro stations with a hanging way, and residents will not need to use roads.
This policy, still under formulation, would mark a substantial shift in how the capital builds housing, integrating urban transport directly into residential infrastructure. With Delhi's population density swelling and available land becoming scarcer, Khattar emphasised that vertical development is not just preferable, it's necessary.
"Urbanisation is picking up pace, but land is limited," he said. "We need to use vertical space. Many cities are adopting Transit-Oriented Development (TOD), which allows multi-storey buildings along metro lines."
TOD, a planning strategy already in place in several Indian cities, encourages high-density construction around public transit hubs. The Centre sees it as a practical route to counter traffic congestion and infrastructure strain while making cities more livable.
Delhi's policy would align with broader national trends. According to Khattar, around 60 developers in Gurugram and Faridabad have already secured approvals to erect high-rise towers connected to transit points. Delhi developers, once given similar regulatory clarity, are expected to follow suit.
Current Restrictions in Place
As of now, vertical housing is strictly prohibited in Delhi's Master Plan 2021. Typically, residential plots are allowed to be three stories high without a lift. Anything taller requires additional approvals from the Delhi Development Authority (DDA), resulting in selective development in areas like Kidwai Nagar and Outer Delhi.
The DDA's upcoming Master Plan 2041 aims to change that. Among its proposals is a land pooling mechanism allowing more liberal floor-area ratios. The plan permits ground coverage ranging from 33 per cent to 50 per cent for residential plots designated for vertical use. Once implemented, the new rules are expected to spawn high-rise buildings across the city, especially in areas adjacent to metro corridors.
Impact on Homebuyers and Developers of Falling Prices
For potential home buyers, that may mean a new era of better-connected, amenity-rich housing, but it's not without trade-offs. The prices are higher for the high-rise buildings and obviously for the buildings that have a metro. For developers, there may be new opportunities on the vertical frontier, but for consumers it will be a trade-off between convenience and value per square foot.Also, shifts in policy such as these could reset land values throughout the city.
Amit Modi, Director, County Group, says, Delhi, embracing vertical growth, will only add to the National Capital Region’s overall development narrative, but it's unlikely to impact the high-rise demand in Noida or Gurugram. Delhi’s land prices are extremely high and not affordable compared to land parcels allocated in Noida, Gurugram, and Faridabad. Meanwhile, Noida and Gurugram offer master-planned layouts with modern amenities, and faster connectivity through developments like the Dwarka Expressway, Noida Expressway, Yamuna Expressway and NH24 etc, in addition upcoming projects like Noida International Airport, RRTS and Delhi Mumbai Expressway make these cities an important arteries to other states."
Neighbourhoods near metro lines that were once assessed as relatively affordable could appreciate considerably as they are opened up to high-density development.
A Push Toward Cleaner Urban Mobility
Beyond real estate speculation and construction permits, the proposed policy also aligns with broader environmental and infrastructural goals. Make it easier for people to reach metro stations, and they will be less dependent on surface transportation. This will reduce vehicular emissions and shorten travel time. Delhi's air, which has been under close watch for years, might be slightly improved if fewer private vehicles were to clog its roads each day.
Sunny Katyal, Co-Founder of Investors Clinic, says, "If Delhi begins allowing more high-rise developments, it may create new supply for end-users there, but it’s unlikely to dent the appeal of Noida and Gurugram."
The plan, however, continues to face obstacles in its implementation. There are still problems related to the bottled capacity of infrastructure, the problem of the zoning factor, and the issue of integrated inter-agency cooperation etc., in the city's land-use planning to be solved. For the policy to work, enforcement will have to be swift, and loopholes in existing systems will need to be cannily plugged.
Kushagr Ansal, Director, Ansal Housing, stated, "The rise of high-rise complexes in Delhi can be a game-changer in the NCR real estate scenario. Though it could pose short-term competition to Gurugram and Noida in the beginning, the long-term impact is bound to be complementary."
Yet if carried out clearly and quickly, Delhi could soon see a skyward shift, where people live and work in residential towers along the tracks, and the morning commute starts with a stroll across an elevated skywalk, not a packed street.
Sanjeev Arora, Director 360 Realtors, says, "High rise in Delhi will be a welcome step indeed. However, the impact on Gurgaon or Noida will be minimal. These are all independent markets with as such no major impact on each other. Homebuyers interested in the Delhi market might not very keen on Gurgaon or Noida. Likewise, homebuyers who work in Gurgaon or Noida will invest their rather than Delhi."
