Realty Sector Welcomes FAR Hike; Wants Increase in Density

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Real estate industry hailed increase in floor area ratio (FAR) and ground coverage for plots in Delhi, saying the move would allow more built up area on bigger land parcels, but felt that housing supply would not be boosted till height and density norms are eased, reported PTI.

Urban Development Ministry today increased the FAR and ground coverage in Delhi. FAR in respect of plots of 750-1000 sq mt size has been raised from 150 per cent to 200 per cent while the same has been increased from 120 per cent to 200 per cent for plots of 1000 sq mt and above.

Realty Sector Welcomes FAR Hike; Wants Increase in Density
FAR is the ratio of a building's total floor area as compared to the size of the land upon which it is built.

Ground coverage for plots of 1000 sq meter and above has been increased from 40 per cent to 50 per cent.

"The increase in FAR in Delhi is a welcome move. This will benefit plot owners of 750 sq meter and above who are mostly HNIs," CREDAI NCR President Rohit Raj Modi said.

However, Modi said: "There is a need for clarity on density norms and height specification. Hike in FAR would be effective in boosting supply if there is an increase in number of dwelling units, density and height."

Property consultant CBRE South Asia CMD Anshuman Magazine said: "This will lead to an increase in built up areas in colonies in South Delhi and some other parts of Delhi where there are plots of bigger size."

Terming the government's decision as an interesting move, he said: "The exact impact of this FAR enhancement will be better understood once more clarity is provided on whether there is to be any parallel move to increase dwelling units in the city as well".

Magazine said there would not be much impact on organised real estate developer.

Realty major DLF spokesperson said the FAR is already 200 per cent in the group housing projects in Delhi and therefore there would be no positive impact.

Welcoming the move, JLL India country Head and Chairman Anuj Puri said: "Providing the higher FAR is a good move; that said, it will make the apartments bigger - and with no change in density norms, ticket-sizes may rise as well."

"With height restrictions for individual residential plots not increased from the current 17.5 meters along with stilt parking provisions, developments are likely to remain of same height," Puri said.

"There is also likely be an impact on group housing plots, where ground coverage that was previously 33.3 per cent will now be 50 per cent. This will allow for bigger apartments to be built, though FAR here was already 200 per cent under the master plan.

"No height restrictions were applicable for group housing plots, and hence there is no issue for such developments with regards to height provisions," JLL India said.

Read more about: realty sector
Story first published: Thursday, November 27, 2014, 9:20 [IST]
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