Bengaluru’s 60% FAR Hike Spurs High-Rise Boom, but Infrastructure Woes Persist

Bengaluru’s real estate market is on the brink of a transformative shift with the state government’s decision to increase the Floor Area Ratio (FAR) by up to 60%. This significant boost in the Floor Area Ratio (FAR) enables developers to construct taller buildings by paying a premium, maximizing space utilization and catering to the city’s growing demand for high-rise developments. However, while this move promises to spur urban growth, experts caution that the increased density may further strain Bengaluru’s already burdened infrastructure.

Overview of the FAR Increase

The Karnataka government has revised the FAR cap in Bengaluru as part of efforts to facilitate vertical growth. Under the new notification dated February 21, revised under Section 13-E of the Karnataka Town and Country Planning Act, 1961, developers can avail:

• 60% of the maximum FAR for areas with road widths above 18 meters.
• 40% of the maximum FAR for roads between 12 and 18 meters.

Additionally, the government allows developers to increase the maximum permitted FAR by:

• 40% through premium FAR, and
• An extra 20% via Transferable Development Rights (TDR) for roads wider than 18 meters.

This policy change primarily targets areas in both South Bengaluru (including Kanakapura, Hoskote, and Anekal) and North Bengaluru (covering regions like Nelamangala and the Bengaluru International Airport zone).

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What Does FAR Mean for Developers?

Floor Area Ratio (FAR) is the ratio of a building’s total floor area to the size of the plot on which it is built. Under the previous guidelines, on a 10,000 sq m plot, a FAR of 2.5 allowed developers to build up to 25,000 sq m of space, typically spread over five floors. With the new increase, developers can now add two additional floors—providing an extra 10,000 sq m of buildable area. This additional space comes at a premium cost of ₹1,400 per sq m, opening up new avenues for high-rise development.

Below is a summary table illustrating the changes in development potential under the revised FAR guidelines:

This increase in FAR not only allows for more inventory but also enables a more efficient use of limited urban land, which is crucial in a rapidly growing city like Bengaluru.

Impact on Bengaluru’s Urban Landscape

Positive Impacts:

• Increased Inventory and Potential Price Reduction:
  With the ability to build more floors, developers can increase the supply of residential and commercial spaces. This could help balance the demand-supply equation and potentially lead to a reduction in property prices over the long term.
• Economic Growth:
  More high-rise projects mean additional construction activity, which can boost job creation and contribute to overall economic development in the region.
• Modern Urban Development:
  The vertical expansion aligns with the need for sustainable urban growth by efficiently using available land and reducing urban sprawl.

Concerns and Challenges:

• Infrastructure Strain:
  Experts like OP Agarwal warn that a 60% increase in FAR is steep and may exacerbate issues related to traffic congestion, water supply, sewage, and parking. The surge in building density could overwhelm the existing infrastructure, leading to significant challenges in maintaining quality urban services.
• Sustainability Issues:
  Environmentalists, such as Sandeep Anirudhan, point out that increased FAR will drive up the demand for parking spaces, water, and common amenities, potentially worsening the city’s current infrastructure problems like flooding and loss of water bodies.
• Regulatory Oversight:
  The successful implementation of these changes will require careful planning and strict regulatory measures to ensure that development is balanced with the necessary upgrades in urban infrastructure.

Expert Opinions

Industry experts have mixed views on the revised FAR policy:

• Developers’ Perspective:
  Mallanna Sasalu, CEO of Provident Housing Limited, welcomes the move as it enables Bengaluru to grow vertically, increasing inventory and potentially reducing property prices over time.
• Infrastructure and Environmental Concerns:
  However, experts caution that without parallel investments in infrastructure, the benefits of increased FAR could be offset by congestion, water shortages, and other urban challenges. They emphasize the need for sustainable urban planning and improvements in public utilities to accommodate the additional density.

Conclusion

The Bengaluru Floor Area Ratio (FAR) increase of 60% marks a bold step towards addressing the city’s spatial constraints by enabling high-rise development. While this policy promises to drive growth and enhance inventory, it also brings significant challenges. With potential benefits including reduced property prices and increased economic activity, the move must be carefully managed to prevent further strain on Bengaluru’s already stressed infrastructure.

For developers and policymakers, the key lies in balancing vertical growth with sustainable urban planning and robust infrastructure investments. As Bengaluru continues to evolve, the impact of the FAR increase will be critical in shaping the future of the city’s real estate market. Stakeholders must work together to ensure that the benefits of higher density are realized without compromising the quality of urban life.

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