In a move that could significantly impact construction costs in Haryana, the Department of Town and Country Planning (DTCP) has announced a 20% hike in Floor Area Ratio (FAR) rates for plots exceeding 250 square meters. This decision comes after a long period of unchanged FAR rates, with the last revision occurring in 2016.
The revised rates apply progressively, with the increase becoming steeper for larger plots. Plots between 250 sq m and 350 sq m witness a 19% rise, while those between 350 sq m and 450 sq m see a 21% jump. Plots exceeding 500 sq m experience the most significant increase, with FAR rates surging by nearly 24%.
This move by the DTCP is intended to generate additional revenue for municipal development projects. However, it has drawn criticism from developers who fear it will substantially inflate construction costs for larger properties, especially luxury villas and bungalows. They argue that the increased financial burden may be passed on to homebuyers, potentially affecting property prices and dampening demand for these types of residences.
Furthermore, some developers worry that the hike could discourage large-scale residential projects, potentially hindering overall development in the state. The long-term impact of this decision remains to be seen, but it is certain to have a ripple effect on Haryana’s real estate market, particularly in the segment catering to buyers seeking spacious luxury accommodations.
