Haryana’s real estate sector has jointly approached the state government with a broad set of reform proposals, arguing that existing regulatory and fiscal frameworks are constraining housing supply, delaying project delivery and undermining planned urban growth across key cities such as Gurugram and Faridabad. The industry-wide representation comes amid mounting cost pressures, stalled developments and growing concerns around housing affordability in one of north India’s most urbanised states.
At the centre of the demands is the treatment of external development charges (EDC) and related levies. Developers contend that current enforcement mechanisms, particularly the practice of freezing approvals across an entire developer group due to outstanding dues in unrelated projects, have created systemic bottlenecks. Industry experts say this approach has slowed construction activity even where individual projects are compliant, disrupting cash flows and delaying homes for thousands of buyers. The sector has proposed shifting to a strictly project-based compliance framework, allowing approvals, licence renewals and completion milestones to proceed where dues are being serviced. According to urban economists, such a change could help unlock stalled housing supply while enabling more predictable recovery of public charges over time. Another significant concern relates to the revival of delayed projects taken over by new investors. Developers argue that legacy liabilities linked to previous promoters often make revival financially unviable. They have suggested deferring such dues until homes are ready for occupation, a move they say would prioritise buyer protection and reduce long-term urban blight caused by unfinished developments. Housing affordability has emerged as a key theme in the submissions. With land and construction costs rising sharply over the past five years, developers are seeking a revision in price caps under Haryana’s affordable housing framework. Planning professionals point out that without periodic recalibration, regulated pricing can discourage new supply, especially in high-demand markets where infrastructure and compliance costs continue to climb.
Alongside pricing, density norms are also under review. Developers have urged the state to consider allowing higher residential densities in certain segments to enable smaller, lower-ticket homes within the same land footprint. Urban planners note that if aligned with transport capacity and social infrastructure, such measures can support compact, people-first development while reducing urban sprawl. The industry has also raised concerns around transferable development rights (TDR), environmental clearances and real estate regulation processes. Proposals include revisiting TDR valuation methods, aligning environmental approvals with phased project realities, and simplifying regulatory fee structures under the state’s real estate authority to reduce duplication and administrative friction. From a governance perspective, experts stress that these demands reflect deeper questions about how Indian cities finance infrastructure and regulate growth. Linking charges and interest more closely to actual infrastructure delivery, they argue, could improve trust between the public sector and private developers while ensuring more accountable urban expansion.
As Haryana continues to urbanise rapidly, particularly along key economic corridors, the outcome of these discussions could shape the next phase of housing supply, affordability and infrastructure-led growth. The state’s response will be closely watched by homebuyers, investors and planners alike, as it signals how policy adapts to the realities of fast-changing urban markets.
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