Big gain for Bengaluru builders as Karnataka govt revives premium floor area ratio

Bengaluru: About three weeks after withdrawing the bill on premium floor area ratio (FAR), the state government has notified changes to the zonal regulations of Bengaluru’s local planning area to allow additional floors over and above what was so far permissible.

The changes have been introduced by citing Section 15 of the Karnataka Town and Country Planning Act of 1961. The move aims to bypass the Governor’s assent as Thaawarchand Gehlot had earlier sent back the bill, raising several questions. 

The width of the road abutting the property will determine the maximum additional built-up area allowed on top of what is permissible.

For instance: an additional sital area of 20 per cent is allowed on a road greater than 9 metres and less than 12 metres. Up to 40 per cent built-up area is allowed on 12 to 18 metre-wide roads and a maximum of 60 per cent extra built up is permitted on roads that are more than 18 metres wide. 

Premium FAR is a notional sital area which can be purchased by paying charges to the local planning authority.

As per the new notification, additional built-up area cannot exceed 40 per cent of the total sital area. The remaining 20 per cent can be loaded by making use of transferable development right (TDR) certificates. This is being done to make TDR relevant as it is used to acquire private land for public projects. 

The new rule is expected to become a bonanza for real estate developers as the government has fixed 28 per cent of the guidance value for purchasing the premium FAR. This is expected to work out cheaper for the builders and make it attractive to build additional floors. 

The premium FAR is unlikely to make any difference for small properties such as 30x40 or even 40x60 as building additional floors also mean leaving large setback areas.