by Mr. Anuj Puri, JLL India
As per reports, the
Central Government has approved the proposal to increase the FAR / FSI (floor
area ratio/floor space index ) in Delhi state. This increase in FAR is for
residential plots which are 750 square meters or / higher, wherein the FAR has
been increased to 200 from 150.
For plots bigger than
1000 square meters, the FAR has gone up to 200 from 120 and ground coverage has
been increased from 40 % to 50 %. Providing the higher FAR is a good move; that
said, it will make the apartments bigger - and with no change in density norms,
ticket-sizes may rise as well.
Though no clarity has
been given on an increase in the dwelling units allowed on the larger plots,
there is a provision in the draft Delhi Master Plan 2021 which allows for an
increase in the number of dwelling units.
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| Mr. Anuj Puri, JLL India |
Under this provision,
the cost of a concurrent augmentation of associated civic infrastructure has to
be borne by the developer and paid to the authority.
This provision in the
draft master plan can be used to increase the number of dwelling units.
If used judiciously,
this provision in conjunction with the increased FAR can be utilised for
increasing the housing stock on residential plots going forward.
Only then will some
movement towards creating more houses and an associated reduction in prices be
likely. With height restrictions for individual residential plots not increased
from the current 17.5 meters along with stilt parking provisions, developments
are likely to remain of same height.
There is also likely
be an impact on group housing plots, where ground coverage that was previously
33.3 % will now be 50 %. This will allow for bigger apartments to be built,
though FAR here was already 200 under the master plan.
No height
restrictions were applicable for group housing plots, and hence there is
no issue for such developments with
regards to height provisions.
A sizeable uptick in
the stock prices of listed players which are likely to be holding prime lands
in Delhi – notably DLF Ltd, Unitech & Anant Raj – has been seen.
Better valuation for
such land on account of increased FAR for residential plotted developments is
the likely factor behind this increase in their respective stocks.
The impact may be
seen in the short-term, but there should be more going forward when the
mid-term review of the master plan 2021 is completed and the changes notified
by the end of the year.
About the author
Mr. Anuj Puri is
Chairman & Country Head at JLL India
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