Haryana's Department of Town and Country Planning (DTCP) has increased floor-area-ratio (FAR) rates for large plots by around 20%, the first hike since 2016. Plots between 250-350 sqm will now have an FAR rate of INR4,500/sqm (up 19%), while plots between 350-450 sqm will pay INR6,500/sqm (up 21%). For plots larger than 500sqm, the rate jumps 24% to INR10,000/sqm. The hike aims to address rising land demand in cities like Gurgaon, with revenues supporting municipal development. Developers warn the increase could raise construction costs, potentially slowing large projects and pushing prices onto homebuyers.
Haryana's Department of Town and Country Planning (DTCP) has implemented a 20% increase in floor area ratio (FAR) rates for large plots, marking the first hike since 2016. The revised rates are aimed at addressing the growing demand for land in urban areas like Gurgaon, where population density is rapidly increasing. FAR, the ratio of a building's total floor area to the size of the land on which it is built, plays a crucial role in determining construction potential on a given plot.
The new directive, issued by DTCP's additional chief secretary Arun Kumar Gupta on September 10, outlines that FAR rates remain unchanged for plots up to 250 sqm. However, for plots between 250sqm and 350sqm, the FAR rate has increased by 19% to INR4,500 per sqm, up from the previous INR3,770 per sqm. For plots between 350sqm and 450sqm, the rate has risen by 21%, from INR5,380 per sqm to INR 6,500 per sqm. The most significant increase, at 24%, applies to plots larger than 500sqm, where the FAR rate has jumped from INR8,070 per sqm to INR10,000 per sqm.
Officials explained that a 20% hike in FAR rates is expected to contribute to municipal development, with revenues directed to the municipal corporation. However, developers have expressed concerns that the increased rates will raise construction costs for larger plots, potentially slowing down large-scale projects. This may force developers to pass the additional costs onto homebuyers, which could result in higher property prices. Some experts also fear a shift in demand toward smaller plots as a result of the price hike.
Residents have voiced concerns about affordability, particularly in cities like Gurgaon where property prices are already high. City resident Deepak Verma highlighted the financial strain the increased FAR rates will place on potential homeowners. The DTCP directive further stated that there will be no option to purchase additional FAR for plots up to 75 sqm, and the rate for plots between 75 and 100 sqm will remain at INR1,615 per sqm.Officials stated that the changes have been conveyed to the Haryana Shahari Vikas Pradhikaran (HSVP), town planning departments, urban local bodies (ULB) department, HSIIDC, and other pertinent agencies. All departments have been directed to adjust their processes to align with the new FAR pricing structure.
In conclusion, the DTCP's 20% FAR rate increase aims to accommodate growing urban demand in Haryana but raises concerns about higher construction costs and property prices. This may shift developer focus to smaller plots, affecting affordability for potential homebuyers.
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