Delhi’s housing strategy for the next two decades is set to place greater emphasis on rental accommodation as the Capital prepares for a sharp rise in population and continued migration. The Master Plan for Delhi-2047 (MPD-2047) proposes a dedicated framework for affordable rental housing, including Affordable Rental Housing Complexes (ARHCs), smaller homes, studio apartments, hostels and dormitories.
The move comes as Delhi is projected to have a population of around 32 million by 2047. According to the plan, the city could require about 7.11 million dwelling units by then, creating a need for nearly 4 million additional homes compared with the existing housing stock. The housing requirement has been calculated considering population growth, household size, existing housing shortages and other factors.
Migration is expected to remain a major factor behind Delhi’s population growth. The MPD-2047 estimates that migrants could account for around 41% of the population increase during the plan period. This has prompted planners to look beyond traditional home ownership and create housing options suited to people who may live in the city for shorter or changing periods.
The proposed rental housing framework is particularly aimed at migrant and seasonal workers, students, single working professionals and lower-income households. Such groups often need affordable accommodation close to workplaces, educational institutions and transport networks but may not have the financial capacity or need to purchase a permanent home.
Under the plan, ARHCs could be developed on both public and private land. Industrial areas and industrial parks could also accommodate rental housing for workers through smaller residential units and dormitory-style facilities. The plan also allows the possibility of bringing vacant public housing and unsold residential units into the rental market, making better use of housing that is already available.
The proposed accommodation is expected to include a mix of single- and double-bedroom units as well as dormitories. The rental model is intended to offer greater flexibility, allowing residents to move in and out without the high financial entry and exit costs associated with home ownership. Under the proposed framework, rental arrangements could range from three months to three years.
The housing strategy is also being linked with Delhi’s wider urban expansion. The MPD-2047 proposes new housing in land-pooling and Transit-Oriented Development (TOD) areas, along with redevelopment of existing neighbourhoods and unauthorised colonies. These measures are intended to increase the city’s housing supply while making better use of land and existing urban infrastructure.
The Delhi Development Authority (DDA) approved the Master Plan for Delhi-2047 earlier this month. The plan will now move to the Ministry of Housing and Urban Affairs for final approval and notification before it becomes the framework for Delhi’s long-term development.
For a rapidly growing metropolis like Delhi, the challenge will extend beyond simply adding new housing units. Ensuring that affordable homes are supported by public transport, water supply, sanitation, roads, employment opportunities and other essential services will be equally important. By giving rental housing a more prominent place in its long-term planning, MPD-2047 seeks to make Delhi’s future housing system more flexible and responsive to the changing needs of its population.
