Bengaluru’s FAR cap raised by 60% to boost vertical growth

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Chaitanyesh
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Bengaluru ascends as a prime choice for NRI investments in real estate
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  • Bengaluru is set for a dramatic skyline transformation
  • Karnataka govt increases Floor Area Ratio (FAR) cap by 60%
  • Move benefits large landowners and encourages vertical expansion

Bengaluru is set for a dramatic skyline transformation as the Karnataka government increases the Floor Area Ratio (FAR) cap by 60% across the city and nine suburban areas. The revised policy, effective February 21, allows builders to construct additional floors by paying 28% of the guidance value, benefiting large landowners and encouraging vertical expansion.

Also read: Booming investment: Devanahalli and Chikkaballapur emerge as real estate hotspots

The new regulation falls under Section 13-E of the Karnataka Town and Country Planning Act, 1961. It applies to regions managed by the Bangalore Development Authority (BDA), the Bengaluru-Mysuru Infrastructure Corridor, and localities such as Anekal, Kanakapura, Nelamangala, and Hoskote.

Under the updated system, additional FAR can be obtained through two methods: Premium FAR, which offers up to 40% extra buildable area based on plot size and road width, and Transferable Development Rights (TDR), granting an additional 20% FAR for landowners who surrender land for public projects.

For instance, a builder with 10,000 sq m of land where the guidance value is ₹5,000 per sq m could previously construct up to 25,000 sq m. With the new policy, they can add two extra floors by paying ₹1.4 crore, potentially generating ₹50 crore in revenue.

While the move is expected to boost large-scale projects and joint developments, concerns persist over potential misuse, with fears of illegal constructions. The government has outlined strict rules to regulate premium FAR, including restrictions on transferring unused rights and limitations on applying agricultural land values to urban sites.

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