HIKE IN FAR TO BOOST NOIDA REALTY SECTOR
Considering the increase of population in Noida and Greater Noida with special preference for metro corridors by folks, Uttar Pradesh government has approved the proposal of increasing the floor area ratio (FAR) by 0.5 in metro corridors. Before this the FAR permissible was 2.75 which is now increased to 3.25. The main aim of government is to nurture the population concentration alongside the Metro corridors which could help residents to have metro connectivity within their reach.
Recently, the Government brought a major relief to the Noida populaces by approving the mixed land usage in residential and commercial sectors across Noida and Greater Noida. Along with it, now government had notified another major revision of FAR rates. The approval for the amendment in Noida’s building regulation came through a gazette notification issued by UP government dated March 27.
According to Noida Authority Chairman and CEO Rama Raman, FAR will pave the path for additional realty space, which is the demand of increasing population along the Metro corridors. He further added, “We are also encouraging mixed land use in residential and industrial sectors and higher floor area ratio along the Metro corridors to enhance economic activity”.
The new FAR would be applicable within a range of 500 metres radius of the existing Delhi Metro and the upcoming Noida to Greater Noida Metro line. Floor Area Ratio (FAR) is increased from 2.75 to 3.25 in metro corridors. The UP government has also approved an increase in FAR for the proposed Sports City in Noida Sec-150. FAR is raised to 2 from existing 1.5 for permissible ground coverage of 30%. For government, semi-government, corporate offices and other offices in institutional areas, FAR has been increased from 2 to 2.50. But this applies only to the plots which are situated on roads which are 24 m wide or more. For group housing plots, FAR hiked from 2.75 to 3.5 but this hike will be applicable only to developing and undeveloped sectors. Noida authority is expected to generate revenues amounting to Rs. 3,500 to 4,000 crores from the sale of additional realty spaces. These proceeds of additional FAR would be put to support the resources of Metro system besides funding the Noida Metro Rail Company.
With this news of revision in FAR rates, new expectations have started to evolve. By increase in FAR, the Metro corridor areas are likely to come into spotlight because of the migration of general masses to these areas. More number of people can now reside closer to metro corridors. FAR will also allow developers to construct additional units vertically, thereby, increasing their profit margin as, the development will not require further acquisition of land. Not just this, more investments are expected to be done in such areas because it’s a proven fact that wherever massive population assembles, investments do come after them. Finally, more number of units means higher number of registrations with authority; and thus, this will be a win – win situation for public, developers and authorities as well. Keeping in mind all these factors modifications in FAR will bring fruitful and positive results for the society and the entire region altogether.
Mr. Ashok Gupta, CMD, Ajnara India Ltd. said, “The best part about this hike in FAR is that, key real estate regions are located along the metro line and it was extremely important that these regions get highlighted on priority. This would benefit people to reside closer to the metro corridors and enjoy better connectivity and infrastructure. In future, this will also serve as a great source of revenue generation for the authority as well”.
Mr. Deepak Kapoor, Director, Gulshan Homz says, “With the approval of enhancements in FAR by the Noida Authority, the way for constructing additional realty spaces is now open. Amount of around Rs. 3,500 crores is expected to be generated from the sale of extra FAR, which would build up the government resources. These resources would be utilized for better metro networks and a strategic move towards better development of the region”.
Mr. Rupesh Gupta, Director, JM Housing said, “Enhancing FAR will make residential developments go vertical. The NCR will now see more high rise projects and the skyline of the whole region will be transformed. With shortage of land and demand for housing units only going up, increasing FAR is a good step. Noida is a fast developing region in Delhi/NCR”.
Mr. Mahipal Singh Raghav, CMD, MMR Group said, “Increase in FAR will have multiple effects: the buildings will grow taller and developments will be more vertical & more space for recreational activities will be increased. This can help developers build more units in a lesser space which will surely reduce the pressure on land, though marginally. Also, the demand near to important developments such as metro, bus stands, hospitals, schools, etc. is always greater”.
Mr. Prithvi Raj Kasana, MD, Morpheus Group says, “The revision of FAR will aid Noida in diverse ways. This is great news from Noida authority, as the increase in Floor Area Ratio will help the mounting issue of accommodation to all and also in realizing the value of ‘Housing for all’. The increased FAR will help the developers with additional space in fulfilling the demand and supply gap”.
Mr. Rajesh Goyal, MD, RG Group says, “Announcement in the rise of FAR is favorable for all. Escalation in FAR will induce new realty spaces near metro corridors which is beneficial for all. Increase in inhabitants will attract investments too in these regions. This news will also benefit the buyers in respect of prices as the prices will be stable to realistic levels without rise in prices as well that will help the developers with extra space”.