Bengaluru Raises FAR Cap for High-Rise Development
Bengaluru’s skyline is poised for a dramatic transformation following the Karnataka government’s decision to increase the Floor Area Ratio (FAR) cap by a significant 60%. This move, effective from February 21, allows developers to construct additional floors on existing properties by paying a premium of 28% of the guidance value. While this change promises to meet the increasing demand for urban space, it also raises concerns over the city’s infrastructure and environmental sustainability.
Bengaluru and nine suburban areas including Kanakapura, Nelamangala, and Hoskote, introduces a two-tier approach to the FAR increase. Developers can avail up to 40% additional construction based on the size of the property and the width of the road. The remaining 20% can be accessed through Transferable Development Rights (TDR), where landowners surrender their property for public projects. For example, a developer owning 10,000 square metres of land with a guidance value of Rs 5,000 per square metre, which previously allowed them to build 25,000 square metres, can now construct an additional 10,000 square metres by paying Rs 1.4 crore. This extra space could potentially generate Rs 50 crore in revenue, making it an attractive option for large-scale projects.
The policy is expected to disproportionately benefit large projects. The increased FAR is particularly advantageous for developments over 5,000 square feet, encouraging joint developments and the amalgamation of smaller plots. Smaller properties, however, may not fully capitalise on the new rules due to existing height restrictions and other regulatory constraints.This shift towards taller buildings comes in response to the rapid urbanisation of Bengaluru, where demand for housing and office space is rising sharply. With the city now expanding across a 30 km radius, the move is seen as a necessary step to support the growing population. Developers are optimistic about the policy, citing it as a catalyst for Bengaluru’s shift towards a more vertical skyline. Despite the optimistic outlook from the real estate sector, concerns are mounting regarding the city’s already strained infrastructure. Experts caution that the FAR increase will exacerbate challenges related to parking, water supply, and sewage management, issues that Bengaluru is already grappling with.
Increased construction activity in already congested areas could lead to further traffic bottlenecks, particularly on major arterial roads, residential streets, and bylanes. Environmentalists are also sounding the alarm. With the city’s infrastructure already under pressure, experts like Sandeep Anirudhan argue that the rise in FAR could intensify Bengaluru’s vulnerability to flooding and water shortages, while contributing to greater air pollution and traffic congestion. “The new FAR policy could significantly impact Bengaluru’s environment and its livability, especially in areas that are already facing infrastructure bottlenecks,” Anirudhan notes.
While the policy is expected to provide a much-needed boost to the city’s real estate sector, developers and city planners must now work together to ensure that sustainable urban planning principles are adhered to.
Measures for water conservation, waste management, and green building technologies will be key to mitigating the long-term impacts of this policy. As Bengaluru’s skyline continues to rise, the challenge will be to balance urban growth with environmental stewardship and social equity. With the right planning and execution, the new FAR policy could herald a new era of sustainable, high-rise development in Bengaluru one that could set a benchmark for other cities grappling with similar challenges
