Karnataka Government Proposes New Premium FAR Norms: A New Era for Urban Development

Posted On - 14 February, 2025 • By - B. Jayprakash

Introduction:

The Karnataka government’s recent proposal to amend the premium Floor Area Ratio (FAR) norms is set to reshape urban development in the state. Aimed at accelerating real estate growth, this move offers developers the opportunity to purchase additional FAR based on road width. With a 30-day window for public feedback, this proposal is expected to have a profound impact on construction practices in Karnataka.

What’s New in the Proposal?

The premium FAR that can be purchased will now depend on the road width, encouraging higher-density development in urban areas. Here’s how it breaks down:

  • 20% Premium FAR for roads 30 to 40 feet wide;
  • 40% Premium FAR for roads 40 to 60 feet wide; and
  • 60% Premium FAR for roads wider than 60 feet.

    This approach seeks to promote the efficient use of space in areas with larger roads, addressing the growing urbanization needs of the state.

    Why is This Proposal Important?

    The premium FAR is a mechanism that allows developers to increase the built-up area on their properties. The proposed rules make this process more accessible by linking additional FAR to the width of the roads, enabling strategic and dynamic urban growth.

    • Key Highlight: For properties on roads wider than 30 feet, the government proposes a premium FAR rate of 50% of the property’s guidance value. This makes it easier for developers to add more floors and infrastructure, provided they comply with the pricing terms.

      The Financial Side: What Developers Need to Know

      To acquire the additional FAR, developers will need to pay at least 28% of the guidance value for the extra built-up area. This payment structure is designed to ensure transparency and manageable costs, while also encouraging sustainable urban growth.

      • Comparison: The new rules suggest a 50% guidance value for properties on roads over 30 feet wide, contrasting with the previous 40% threshold proposed in the now-withdrawn Karnataka Town and Country Planning (Amendment) Bill-2023.

        A Strategic Move to Bypass the Governor?

        While the new FAR norms are seen as a progressive step for urban development, they also come amid political controversy. The recent withdrawal of the Karnataka Town and Country Planning (Amendment) Bill-2023, which faced scrutiny from Governor Thawar Chand Gehlot, has led to speculation about the government’s motives.

        • Key Point: The new proposal aims to bypass the need for the governor’s approval by amending the zonal regulations of the Revised Master Plan (RMP) 2015 under existing provisions from a 2007 order. This allows the government to implement the FAR norms without requiring further amendments to the law.

          The Road Ahead: Public Opinion Matters

          The Karnataka government has officially notified the draft regulations as of January 4 and has given stakeholders a 30-day window to submit their opinions or objections.

          • Why It Matters: This is a crucial time for developers, urban planners, and the general public to assess the impact of the proposed rules and ensure that the regulations meet the needs of both development and the local community.
            • For property developers and investors, this proposal presents a prime opportunity to unlock the potential of properties, especially in high-traffic areas with wider roads.
            • For citizens, this proposal signifies a shift towards efficient land use, higher-density construction, and a modernized approach to urban planning. However, it also raises critical questions about housing affordability, local infrastructure, and the broader impact of large-scale projects on neighbourhoods.

            Conclusion

            The new premium FAR proposal presents an exciting opportunity for urban development in Karnataka. However, careful evaluation and public engagement are essential to ensure that growth remains balanced and sustainable. With a 30-day feedback period in place, stakeholders have a unique opportunity to influence the future of the state’s urban landscape.