Published On:
January 11, 2026
Updated On:
January 11, 2026
Delhi’s L&DO has resumed leasehold-to-freehold conversion after a three-year hiatus, effective January 2026.
For the past three years, the property market in some of Delhi’s most established colonies felt like it was on pause. Because the Land and Development Office (L&DO) had suspended leasehold-to-freehold conversions, residents in areas like Defense Colony, Patel Nagar, and Lajpat Nagar found it nearly impossible to secure bank loans or sell their properties through standard legal channels. That era ended on January 1, 2026, as the L&DO officially reopened the conversion window under a revamped, citizen-friendly policy.
Transparency Through Circle RatesThe standout feature of the 2026 policy is the adoption of Circle Rates to determine conversion fees. In the past, the L&DO used a complicated formula that often resulted in exorbitant costs, discouraging middle-class families from applying. By aligning the fees with the official government valuation of the land, the department has removed the guesswork and potential for bribery, making the process significantly more affordable for the average homeowner.
DDA Steps Up with Help DesksRecognizing that the digital application process can be daunting, the Delhi Development Authority (DDA) has launched an "on-the-spot" assistance initiative. Every Thursday, DDA holds specialized camps at its headquarters, Vikas Sadan. Nodal officers are present to guide residents through the complexities of document uploading and digital fee payments. In just the first week of January, these camps successfully processed over 20 long-pending cases, signaling a new focus on efficiency.
Why You Should Convert NowConverting a property from leasehold to freehold is more than just a paperwork change; it is a financial upgrade. Freehold properties enjoy full ownership of land, which translates to a higher market valuation and seamless transfer of title during a sale. For those looking to renovate or expand, bank loans are easily accessible once the property is freehold. However, owners should ensure their ground rent is paid up to date and that their property mutation is cleared in municipal records before applying to avoid rejection.
