Tuesday, 10 February 2015

COVERING GROUND - More FAR brings cheer to all

The Urban Development ministry recently increased the FAR and ground coverage in Delhi. Here's a look at what it might mean for the sector.

The recent increase in Floor Area Ratio (FAR) and ground coverage for plots in Delhi is being welcomed by one and all in the real estate sector.

The Urban Development ministry recently increased the FAR and ground coverage in Delhi FAR in respect of plots of 7501,000 sq meters has been raised from 150% to 200% while for plots of 1,000 sq meters and above FAR has been increased from 120% to 200%.

FAR is the ratio of a building's total floor area compared to the size of the land upon which it is built. Ground coverage for plots of 1,000 sq meters and above has been increased from 40% to 50%. Anshuman Magazine, CMD of CBRE South Asia Pvt Ltd, says: "The decision to increase the ground coverage and floor area ratio in Delhi will have a relative ly greater impact on prime residential neighborhoods of Delhi over more mid-market localities. The exact impact of this enhancement will be better understood, however, once more clarity is provided on whether there is to be any parallel move to increase dwelling units in the city as well."

“Though no clarity has been given on an increase in the dwelling units allowed on larger plots, there is a provision in the draft Delhi Master Plan-2021, which allows for an increase in the number of dwelling units. Under this provision, the cost of a concurrent augmentation of associated civic infrastructure has to be borne by the developer and paid to the authority. This provision in the draft master plan can be used to increase the number of dwelling units,“ Anuj Puri, chairman and country head of JLL India, said.

Mohit Goel, CEO of Omaxe Limited, said the increase in FAR will en courage vertical and new development in Delhi. “It is a good move by the government to allow for more real estate space and development. This will help stem the rise in price of houses in Delhi and give a boost to affordable housing. However, this will put immense pressure on Delhi's infrastructure and resources for which the government must think ahead,“ Goel said.

“The change is likely to be imperceptible as far as housing density is concerned. Under the re vised FAR guidelines, new constructions on larger plot sizes may be expected to have bigger sizes and better space utilization.

Without a parallel provision to also change height restrictions and increase the number of housing units on large plot-sizes of 750 sq meters to 1,000 sq meters and above, the city's housing stock is unlikely to see any improvement. Home-buyers within city zones affected by the recent raise in circle rates may be better able to close the gap between the higher circle rates and going market prices through more efficient construction of their properties,“ Magazine said.

Puri says that if used judiciously, this provision in conjunction with the increased FAR can be utilized for increasing the housing stock on residential plots going forward. Only then will some movement towards creating more houses and an associated reduction in prices be likely.

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.

“There is also likely be an impact on group-housing plots, where ground coverage that was previously 33.3% will now be 50%. This will allow for bigger apartments to be built, though FAR here was already 200% 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,“ Puri said.

With a few exceptions, the raise in FAR is mostly being lauded by all the stakeholders.

No comments:

Post a Comment