Karnataka introduces premium FAR to allow high-rises in industrial plots

Bengaluru: High-rise buildings are all set to come up even in the Karnataka Industrial Areas Development Board (KIADB) allotted industrial plots with the government deciding to relax the floor area ratio (FAR) norms – which deal with total built-up coverage of a building – by 60%. 

Given that many of the KIADB plots have been allotted to builders for residential purposes especially in Bengaluru, the FAR of 5.2 is likely to come as a bonanza to the real estate sector. 

On top of FAR, the government has approved wide-ranging relaxations including setbacks, ground coverage and parking norms in all layouts developed by the Karnataka Industrial Areas Development Board (KIADB). 

The order, issued on February 6, 2026, seeks to “maximize land use efficiency” and enable industries to expand vertically rather than acquire additional land, in line with the Karnataka Industrial Policy 2025-30.

The government had introduced similar relaxations to the Greater Bengaluru Authority (GBA) last year. 

The revised regulation for KIADB enhances the permissible FAR – which ranges up to 3.25 depending on plot size and road width, but there is a provision to further increase to a maximum of 5.2 by paying premium charges. For instance: on roads wider than 30 metres, the maximum permissible FAR including premium can go up to 5.2. 

Premium FAR is additional buildable area granted on payment of charges over and above the ordinarily permissible FAR.

For instance: on a 10,000 sq m plot with 75% coverage and base FAR of 2.25, a developer can purchase additional 7,500 sq m of built-up area through premium FAR, which is 50% of the allotment value. 

Apart from increasing the FAR, the order has reduced setbacks for smaller plots and buildings up to 7 metres height, increased ground coverage up to 75%, relaxed parking norms including exemptions for stilt parking and mechanical parking from FAR calculations as well as relaxed setbacks to allow up to 25% additional FAR in cases where full permissible FAR cannot otherwise be achieved. 

Sources in the government described the move as de-regulation of the building norms.

“The new norms will also reduce acquisition of farmland and slow down horizontal growth. Besides promoting vertical development, the move enhances utilization value of the land, lowers capital costs and improves job creation. It is also industries-friendly,” they said.