GURUGRAM: Construction of large properties is set to become costlier, with Haryana’s department of town and country planning (DTCP) increasing rates for purchasing floor area ratio (FAR) by around 20%. It is the first hike since 2016.
Officials told TOI on Sunday that the increase in rates is meant to address rising demand for land in cities like Gurgaon, where population density is rapidly growing.
FAR is the ratio of a building’s total floor area to the size of the plot/land on which it was built.
DTCP additional chief secretary Arun Kumar Gupta on Sept 10 issued the directive, which specified that there are no changes in FAR rates for plots up to 250sqm.
For plots between 250sqm and 350sqm, the new FAR rate is Rs 4,500 per sqm, up 19% from Rs 3,770/sqm. The revised rate for plots between 350sqm and 450sqm is Rs 6,500/sqm, up 21% from Rs 5,380 earlier.
The hike is almost 24% for plots larger than 500sqm. The FAR purchase rate for this category was Rs 8,070/sqm and goes up to Rs 10,000 per sqm.
A DTCP official said apart from encouraging city planning, revenue earned from increased FAR rates will be given to the municipal corporation for development.
But developers said the move could slow down large projects and substantially increase construction costs, forcing realtors to push the burden on homebuyers.
“A 20% increase in FAR rates will certainly impact construction costs for larger plots in Gurgaon. While this move is aimed at boosting municipal development, it poses a significant challenge for developers and individual homeowners, especially those working with tight budgets. The additional financial burden may slow down large-scale residential projects and could potentially shift demand towards smaller plots. Developers will need to reassess their project budgets and pass some of the cost to buyers, which may affect property prices in the area,” a developer said.
Deepak Verma, a city resident, said the increase in FAR rate was worrying. “This makes it harder for people like us to afford homes, especially in a city like Gurgaon where prices are already high,” he said.
The DTCP directive said there won’t be an option to purchase additional FAR for plots up to 75sqm. The existing FAR rate for plots between 75 and 100 sqm remains at Rs 1,615 per sqm.
According to officials, the changes have been communicated to Haryana Shahari Vikas Pradhikaran (HSVP), town planning departments, urban local bodies (ULB) department, HSIIDC and other relevant agencies. All departments have been instructed to update their processes in line with the revised FAR pricing structure.
Source Homevior.in
