Karnataka opens door for vertical growth: KIADB allows FAR up to 5.2, big boost for industrial projects

New building norms ease height and density limits across KIADB zones, aiming to drive industrial expansion, mixed-use hubs, and high-density development along major corridors.

Karnataka is set for a major transformation in its industrial and real estate sectors after the state government relaxed building regulations under the Karnataka Industrial Areas Development Board (KIADB). The revised rules allow developers to achieve a floor area ratio (FAR) of up to 5.2 through premium purchases, enabling large-scale vertical expansion across industrial, commercial, and residential projects.

The government order, issued on February 6, applies to industrial areas, special investment regions, single-unit complexes, and infrastructure projects within KIADB limits. The changes also extend to residential and commercial developments, marking a significant shift in planning norms across the state’s industrial corridors, particularly in the outskirts of Bengaluru, where limited land availability has long restricted growth.

FAR determines how much built-up space can be constructed on a given plot. Under the new framework, total construction can go up to 5.2 times the plot size. Earlier, industrial plots along roads wider than 30 metres were limited to 3.25 FAR. Now, such plots can reach 5.2 FAR, enabling taller and denser developments. Roads measuring 24 to 30 metres allow 4.8 FAR, 18 to 24 metres permit 4.0 FAR, and 12 to 18 metres allow 3.6 FAR. Even plots along roads narrower than 12 metres can achieve FAR ranging between 2.45 and 2.8.

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The revised policy also introduces higher development intensity for integrated industrial townships. Plots along major roads can now have up to 45% ground coverage. This change supports vertical factory models, multi-level warehouses, and mixed-use industrial hubs that integrate worker housing, commercial spaces, and support infrastructure.

Developers believe the reforms will boost project viability in industrial parks, increase demand for commercial and retail spaces, and encourage the development of new residential townships near manufacturing zones. Additional relaxations include reduced setback requirements for smaller plots, updated parking norms, and targeted incentives for industrial areas in peripheral regions, all aimed at speeding up approvals and preventing land underutilisation.

With these reforms, Karnataka aims to position itself as a leading destination for high-density industrial ecosystems, reshape Bengaluru’s skyline, and drive integrated real estate growth along the state’s industrial corridors over the next decade.