Increased FAR gives real estate a boost
The all important government has very recently given a go ahead to spike floor area ratio [FAR] and the ground coverage for all houses in Delhi. The move has come as a fresh lease of life for one and all. Developers are obviously an extremely happy lot as they now get bonus space for constructing their projects. Real estate industry has welcomed the increased FAR with open arms citing that the move will lead to fulfillment of the governments vision of providing a dream home for one and all by the end of year 2022.
Under the purview of the new scheme, for all the Delhi
properties the immensely crucial ground coverage has been hiked from the
prevailing 40% to a staggering 50%. On the other hand, for any and every
residential plot of size 750 sq.m and more, the floor area ratio will now be
calculated to an increased 200% from the prevailing 150%, while for all
properties whose size is 1000 sq.m or higher, FAR will be 200% rather than the
currently used 120%. As a result the face of Indian real estate is all set to change
for the way better.
Floor area ratio (FAR) is a highly crucial parameter which
has to be taken into account while developing or buying a home. FAR in simple
words, is nothing but the ratio between the structure’s cumulative floor area
to that of the cumulative size of the plot on which the structure has been
developed. In other words, it is the cumulative area covered in each and every
floor of the building on a given area of plot.
For instance, if the FAR of a building is 5, then the total
area of construction will be 5 times that of the gross size of the plot.
Therefore FAR which is on the higher side will signify higher density of
construction and vice versa. So obviously a higher FAR leads to a high value of
the given property.
In the past few decades, urbanization has increased at a
fairly rapid pace, thus putting immensely high pressure on the limited land
available for construction. As the prevailing FAR is considerably low, the real
estate faced a massive crunch and was therefore unable to meet the ever growing
demand for residential living spaces. As a result the gap between demand and
supply widened. But with the increase in FAR limits, realty developers will be
able to build bigger and better structures which can accommodate many more
people and families. Thus the impending problem of the gap between demand and
supply will be resolved to a large extent.
Therefore buyers who have bought their dream homes with
comparatively lower FAR will now be able to expand and tailor make their homes
as per their needs. The resale value of such plots will also significantly go
up, leading to higher return on investments. So as the move will lead to an
increased supply of homes, it will go a long way to establish and fulfill the
glorious mission of home for one and all by 2022 or maybe even sooner.
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