September 25, 2024 |
Haryana: Property Prices in Gurgaon and Other Areas to Rise as Govt Increases Far Rates. Here Are New Rates by Plot Size
Construction costs for large properties in Haryana are expected to rise as the Department of Town and Country Planning (DTCP) has increased the rates for purchasing Floor Area Ratio (FAR) by around 20 per cent. This is the first rate hike since 2016, responding to growing demand for land in urban areas such as Gurgaon, where population density is on the rise, a TOI report stated.
What is FAR?
FAR, or Floor Area Ratio, is a measure that determines the total floor area of a building relative to the size of the plot on which it is constructed. This ratio is crucial in urban planning, affecting how densely a plot of land can be developed.
Revised FAR Rates
According to DTCP’s directive issued on September 10 by Additional Chief Secretary Arun Kumar Gupta, FAR rates remain unchanged for plots up to 250 square meters. However, there are significant increases for larger plots:
For plots between 250 and 350 square meters, the FAR rate has been revised to Rs 4,500 per square meter, up 19% from the previous rate of Rs 3,770 per square meter.
For plots between 350 and 450 square meters, the new rate is Rs 6,500 per square meter, marking a 21% increase from the earlier rate of Rs 5,380 per square meter.
For plots larger than 500 square meters, the rate has surged nearly 24%, rising from Rs 8,070 per square meter to Rs 10,000 per square meter.
Purpose of the Rate Hike in Haryana
Officials from DTCP explained that the increased rates aim to manage the rising demand for land and generate revenue for city development. “Apart from encouraging city planning, revenue earned from increased FAR rates will be given to the municipal corporation for development,” a DTCP official stated.
Impact on Developers and Homebuyers
Developers have expressed concerns that the higher FAR rates could slow down large-scale projects and significantly increase construction costs. The increased expenses are expected to be passed on to homebuyers, potentially affecting property prices in cities like Gurgaon.
“A 20% increase in FAR rates will certainly impact construction costs for larger plots in Gurgaon. While this move is aimed at boosting municipal development, it poses a significant challenge for developers and individual homeowners, especially those working with tight budgets. The additional financial burden may slow down large-scale residential projects and could potentially shift demand towards smaller plots. Developers will need to reassess their project budgets and pass some of the cost to buyers, which may affect property prices in the area,” a developer commented.
Public Reaction
The rate hike has also raised concerns among city residents. Deepak Verma, a Gurgaon resident, remarked, “This makes it harder for people like us to afford homes, especially in a city like Gurgaon where prices are already high.”
No Additional FAR for Smaller Plots
The DTCP directive also stated that there will be no option to purchase additional FAR for plots up to 75 square meters. The existing rate for plots between 75 and 100 square meters remains unchanged at Rs 1,615 per square meter.
The changes in FAR rates have been communicated to relevant agencies, including Haryana Shahari Vikas Pradhikaran (HSVP), urban local bodies, and other town planning departments. All departments have been directed to update their processes according to the revised pricing structure.
Source : ET
Related Articles
Explore the Advantages of Ithum Dome Center Sector 29 Gurgaon
The Ithum Dome Center Sector 29 Gurgaon has changed the retail and business industry of the city through its exceptional […]
Why Ithum Dome Center in Sector 29 is My First Choice for Commercial Space?
A proper commercial space location demands analysis of accessibility as well as amenities alongside ambiance and investment opportunities. Industry professionals […]
Gurugram’s Realty Market Sees Record ₹88,000-Cr Investment in 2024: RERA
The Gurugram housing market witnessed unprecedented growth in 2024, with investments of Rs 88,000 crore in newly launched real estate […]