The Floor Area Ratio (FAR) in Greater Noida has been revised upwards from existing 3.5 to 4 and this will have a major impact on the commercial real estate development, especially in new buildings.
FAR is the ratio of the total usable floor area that a building has after construction or permitted to have after construction to the total area of the land on which it is built. FAR is subject to government regulations and is restricted by local authorities. In the case of Greater Noida, it is decided by the Greater Noida Industrial Development Authority. There is already a pre-existing norm for FAR of 4 in Greater Noida. The Authority is likely o give its formal approval for the increase in its meeting scheduled in June 2019. However, there are certain things to note bout the increase in FAR in Greater Noida, these are:
1 The FAR increase will be applicable only to projects located within 500 meters of metro stations falling on Aqua Line of Metro Train.
2 The existing commercial real estate projects will be able to add more floors and take advantage of the increase in FAR. The increase is applicable to residential projects also.
3 Globally there is a practice to allow higher FAR around metro trains stations and this will be in line with the global trends and make real estate more attractive proposition in Greater Noida.
4 Real estate projects, especially commercial projects, will become more attractive for developers since they will be able to add more towers and floors and go vertical with their projects.
5 The projects that are nearing completion and the plans for which have been approved by the local authorities may not be able to add more towers or floors and may not really benefit them. New projects will be the real beneficiaries of the increase in FAR, says property experts.
6 Higher density of population with taller buildings around the metro stations have been encouraged world over so as to reduce personal vehicles thereby limiting pollution and the same effect is expected in Greater Noida by the proposed move.
7 The increase in FAR is expected to bring a new set of developers from around Delhi NCR market who will be able to construct taller buildings and make the most of the land parcels, say property experts.
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