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Increased FAR in Delhi will spur the development of more housing units and cater to the increasing demand of the people of the NCR within the capital itself.

DDA is planning to increase the floor area ratio (FAR) for residential as well as commercial property in Delhi.At present,the FAR of residential property is only 2.

FAR 2 means that if a person owns a 100 sq m plot,then the total built-up area,across all the permissible floors,can only be 200 sq m.Now,if the FAR is increased,the total built-up area on the same plot will also increase proportionally;thus it will increase the total built-up area which would translate into more residential units (in the case of builders and developers ) and more rooms or floors (in the case of individual owners) on the same plot.
However,the revised FAR for Delhi is not yet finalized. Balvinder Kumar,vice-chairman of DDA, says: If the proposed increase in FAR is approved,it will lead to an increase in the number of new apartments and a drop in prices. This will also be the first step in having a taller skyline in Delhi,much like the top metro cities of the world.
Other development authorities like Noida and Greater Noida authorities and GDA (Ghaziabad Development Authority) have increased the existing FAR (floor area ratio) by up to 30%.
Authorities like the Yamuna Industrial Development Authority (YEA) and Huda (Haryana Urban Development Authority) are likely to follow the policy in the near future.
With land going in short supply in major NCR cities like Delhi,Gurgaon,and Noida and the demand for housing rising by the day,the increase in FAR is a welcome step.
The enhanced FAR will have multiple benefits for end users,prospective buyers,and developers.As builders and developers have extra cost burden due to land-acquisition issues and increased cost of construction material,this policy will benefit all the stakeholders in the housing sector,especially in Noida and Greater Noida West (Noida Extension) in the NCR.
During the review of Master Plan-2021,Delhi,DDA already enhanced the FAR by 50% for social infrastructure and commercial establishments like hospitals,community recreational clubs,higher educational institutes,service apartments,and hotels.Now,DDA is planning to enhance the FAR under redevelopment plan to allow more space for housing.
The Noida and Greater Noida authorities recently raised the FAR from 2.75 to 3.50.This will yield more houses per unit floor area in the fast developing sectors of Noida,Greater Noida Expressway,and Greater Noida West.
Rama Raman,chairman and CEO of Greater Noida Industrial Development Authority (GNIDA),says: We decided to revise the FAR,as this will help developers build more housing units on the same plots.The revised FAR will be applicable to the entire Noida and Greater Noida area,excluding the Yamuna Zone,where the extra 25% FAR has not been implemented yet.

Demand for more FAR

The whole of NCRin fact,the whole countryis today facing intense problems related to land,be they land shortage or hurdles in land acquisition from villages.
Currently,only 3% of the land is available for residential housing.The fast expanding national capital has a shortage of 0.49 million homes,which could reach to 2.4 million by the end of this decade.Of this,close to 90% of the shortage comes from the economically weaker section (EWS) and lower-income group (LIG) categories.
With Delhi expanding over the years and the population reaching 17 million,property prices have shot up because of which the middle-class homebuyers have been forced to look for houses in new urban areas around the city like Noida-Greater Noida,Gurgaon,Ghaziabad,Faridabad,etc.

What is FAR

FAR is the ratio of the total floor area of a building to the plot area.The concept underlying FAR is utilization of land in the most optimal manner.
After the relaxation of current limit,developers and builders can enjoy the benefit of increased FAR in two ways: one,builders or developers can go vertical by adding floors and,two,expand horizontally by erecting parallel towers on the same plot.
Development authorities,too,can potentially build highrise apartments which could reach up to 20 floors in certain locations,compared to four-to-six floors now.
In line with this, DDA has plans to increase housing stock in the city by increasing FAR.To implement and make it more robust,all feasible suggestions were taken up during the review of Delhis Master Plan-2021.
Like in Noida and Greater Noida,once more FAR is approved,the benefit will show for larger plots in the city as well as for group housing projects. In Noida and Greater Noida,developers and builders are allowed to build only around 2.75 times of the ground area of a project.
This means that on a 1,00,000 sq ft plot,a builder can have 2,75,000 sq ft of builtup area if it is a green building and can build 275 flats of 1,000 sq ft each.After FAR was increased,builders and developers can now build 350 flats of 1,000 sq feet each.
While the scheme is applicable to all group-housing projects,for existing projects the benefit can be taken only after purchasing new FAR;developers and builders will have to pay 40% of the current land rate according to structural design.

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