Synopsis: Karnataka has recently made a big change by increasing the maximum Floor Area Ratio limit to 5.2 in certain KIADB areas. This means that developers can now build more on the piece of land, this limit is very important for developers and homebuyers. So what does this move mean for people who want to buy homes for property prices and for the future of real estate development, in Karnataka and the KIADB areas.
Karnataka has changed its building rules and increased the maximum allowed FAR from 3.25 to 5.2. This applies to areas developed by the Karnataka Industrial Areas Development Board or KIADB, the goal is to use land. Karnataka wants to support homes, offices and mixed-use projects in growth areas. FAR is the floor area ratio, in which the total built-up area of a building is compared to the plot size, so if a plot is thousand square feet, a FAR of two will mean two thousand square feet of construction is allowed. In simple terms a higher FAR means developers can build more on the same land, basically they can build bigger projects or taller buildings.
For homebuyers, this is a positive news as more houses will be available because builders can put more apartments in the same amount of space, so new projects can have more homes without needing more land. In places where land’s really expensive this can help keep prices from going up too much by having more homes for people to buy. Bengaluru keep growing it’s population which is why building vertically instead of building horizontally is a great way to make room for more people without making the city spread out too much.
Areas That Could Benefit from this news:
- Devanahalli can be a big beneficiary from this because of the airport and the development of The Aerospace Park and Airport City. There are large pieces of land available due to which Devanahalli can benefit a lot from the increased limit for the Floor Area Ratio.
- Hoskote is another area that will do well because of all the logistics work that is happening there. The Chennai-Bengaluru Industrial Corridor and the road that connects to STRR are making this happen.
- Doddaballapur is also growing with a lot of warehouses and industries moving in because it is close to the airport.
- Nelamangala is kind of a hub for industries and logistics, it is in a strategic spot because of the highway and the Tumakuru Road, the future road that will connect to STRR will also help this area.
- KIADB Industrial Areas might benefit as the industrial towns and mixed-use developments will become more possible because the land will be used better.
- The North Bengaluru Airport Corridor will see a lot of development, this includes the areas between Hebbal, Yelahanka and Bagulur, as the land is used efficiently these areas will become more developed.
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While more homes can be built with FAR, it can also cause more problems on roads, traffic, water supply, sewage systems and other city infrastructure. If infrastructure development does not keep up with construction some areas might face congestion and overcrowding. For builders the new rule means they can construct homes or commercial space on the same land. This makes their projects more viable and it may encourage more large-scale residential and mixed-use developments in growth areas. The increase in FAR limit to 5.2 could help Karnataka push growth by allowing more homes and commercial space to be built on the land that already exists. The success of this policy depends on whether roads, public transport, water supply and other infrastructure also grow alongside the homes and commercial space.
Written by Shreya Tiwari
