Is this a pre poll move to please the realty sector? Well, Delhi goes to polls this year and the Delhi development Authority has acceded to the long-term demand from realtors by raising the Floor Area Ratio – the key regulation controlling the size of the buildings in the capital. The FAR is the ratio of the total building floor area to the area of the plot and raising it means allowing more floors.
For plots of size 750-1000 sq m the FAR has been raised from 150% to 200% while for plots of size 1000 sq m and above it has been increased from 120% to 200%. This will enable increased ground cover from 40% to 50% for plots of 1000 sq m aligning it with plots of 750-1000 sqm.
The move will enable redevelopment process of old housing societies and other buildings and has been welcomed by the Delhi realty sector. An additional 372 sq m made available to the a 750 sq m project will be beneficial – feels experts in the sector. Had the FAR been raised in the NCR, Gurgaon and Noida the impact would have been greater, but developers say that the FAR is already high in these regions. Individual land holders can also now make use of the reform. The result may be an increase in the supply of land at stable prices.
While CREDAI feels that the reform should be accompanied by increase in dwelling units, density and height, the Delhi Master Plan 2021 said to have provisioned for all the above factors.