FAR rates for large plots go up 20%, and home construction is set to get costlier
First increase since 2016; Move will slow down large housing projects, say Developers
Officials told TOI on Sunday that the rate increase 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.
The cost of constructing large properties in Gurgaon is set to rise, as the Department of Town and Country Planning (DTCP) in Haryana has increased the rates for purchasing Floor Area Ratio (FAR) by approximately 20%, marking the first hike since 2016. Officials revealed that the hike is in response to the rising demand for land in urban areas like Gurgaon, where the population density continues to grow rapidly. FAR, which represents the ratio of a building's total floor area to the size of the land it occupies, is a crucial factor in urban planning.
According to a directive issued by DTCP's additional chief secretary Arun Kumar Gupta on September 10, there will be no changes in FAR rates for plots up to 250 square meters. However, for plots between 250 and 350 sqm, the new FAR rate has increased to ?4,500 per sqm, a 19% rise from ?3,770 per sqm. For plots between 350 and 450 sqm, the rate is now ?6,500 per sqm, reflecting a 21% hike from the earlier ?5,380 per sqm. The highest increase of almost 24% affects plots larger than 500 sqm, where the rate has jumped from ?8,070 per sqm to ?10,000 per sqm.
A DTCP official stated that the increased FAR rates will fund municipal development, but developers worry about higher construction costs, which may be passed on to homebuyers. Deepak Verma, a resident, expressed concern over housing affordability. The directive also notes no extra FAR purchase option for plots below 75 sqm, while rates for 75-100 sqm plots remain unchanged at ?1,615 per sqm. Relevant agencies have been instructed to update their processes accordingly.