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Business News/ Politics / Policy/  Floor area ratio for residential areas in Delhi raised to 200%
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Floor area ratio for residential areas in Delhi raised to 200%

FAR for plots of 7501,000 sq. mt size has been enhanced to 200% while the same has been increased to 200% for plots of 1,000 sq. mt and above

A file photo of M. Venkaiah Naidu. Photo: Pradeep Gaur/MintPremium
A file photo of M. Venkaiah Naidu. Photo: Pradeep Gaur/Mint

New Delhi: The urban development ministry has increased the floor area ratio (FAR) in Delhi, a move that’s likely to be welcomed by homeowners and developers.

FAR is the proportion of a building’s total floor area to the size of the piece of land upon which it is built.

While FAR has been increased from 150% to 200% on 750-1,000 sq. m plots, it has been raised from 120% to 200% for plots of 1,000 sq. m and above, an official of the ministry said on condition of anonymity.

Urban development minister M. Venkaiah Naidu approved the proposal of Delhi Development Authority (DDA) in this regard on Monday, the official said. The ministry has also approved enhancement of ground coverage for residential areas in Delhi, said the official.

FAR enhancement means proportional increase in total built-up area, which will result in more spacious rooms or floors on the same plot, depending on the ground coverage. However, the benefits of revised FAR will go to plots of 1000 sq. m and above as the ground coverage for them was raised from 40% to 50%.

For plots of 750-1,000 sq. m, the ground coverage will remain at 50%. DDA has proposed an amendment to this effect to the Master Plan Delhi 2021 and firmed it up after objections and suggestions from the public. With land being in short supply in the National Capital Region and the demand for housing rising by the day, the increase in FAR is being considered as a welcome step.

“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," said Anshuman Magazine, chairman and managing director at property consultancy CBRE South Asia. “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."

However, a spokesperson for realty firm DLF Ltd said FAR is already 200% in group housing projects in Delhi and, therefore, there would be no positive impact.

JLL India country Head and Chairman 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," said Anuj Puri, India country head and chairman of Jones Lang LaSalle India, another property consultancy.

“With height restrictions for individual residential plots not increased from the current 17.5 m 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 33.35 will now be 50%. This will allow for bigger apartments to be built, though FAR here was already 200% under the master plan.

Stocks of real estate companies based in the national capital region surged after the ministry’s announcement. Anant Raj Ltd gained 9.71% to 54.80, DLF Ltd 7.20% to 151.95 and Unitech Ltd 4.41% to 18.95.

Mint’s Ashwin Ramarathinam contributed to the story.

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Published: 26 Nov 2014, 04:25 PM IST
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