20% Hike in Haryana FAR Rates: Impact on Gurugram Housing

The construction landscape in Gurugram is set for a significant shift as the Haryana Department of Town and Country Planning (DTCP) has announced a substantial increase in the rates for purchasing Floor Area Ratio (FAR). This is the first hike since 2016, reflecting the growing demand for land amid rising population density in cities like Gurugram.

Key Changes in Haryana FAR Rates

Effective September 10, the revised Haryana FAR rates are as follows:

• Plots up to 250 sqm: No change in rates.
• Plots between 250 sqm and 350 sqm: Increased from ₹3,770/sqm to ₹4,500/sqm (approximately 19% increase).
• Plots between 350 sqm and 450 sqm: Increased from ₹5,380/sqm to ₹6,500/sqm (approximately 21% increase).
• Plots larger than 500 sqm: Increased from ₹8,070/sqm to ₹10,000/sqm (about 24% increase).

The DTCP states that this increase in Haryana FAR rates aims to enhance city planning and provide additional revenue for municipal development projects.

Implications for Developers and Homebuyers

While the DTCP envisions this move as a step towards improved urban development, developers are expressing concerns about its potential impact. The increased costs associated with the new Haryana FAR rates may lead to higher construction expenses, which could ultimately be passed on to homebuyers. Many developers fear that this burden could deter large-scale residential projects and shift focus towards smaller plots, as they grapple with tighter budgets.

Deepak Verma, a city resident, echoed these concerns, highlighting how this increase in Haryana FAR rates could exacerbate affordability issues for homebuyers in an already expensive market.

Conclusion

The new Haryana FAR rates signal a crucial change in Gurugram’s real estate market. As developers recalibrate their budgets and strategies, the overall impact on housing prices and availability remains to be seen. Stakeholders in the construction and real estate sectors must adapt to these changes while navigating the challenges they present for future projects and home affordability.

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