Karnataka relaxes FAR rules for taller real estate projects: What it means
Karnataka's new FAR rules allow developers to build taller projects in industrial zones, helping maximise land use as cities like Bengaluru face rising land scarcity
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Karnataka’s decision to relax building rules under the Karnataka Industrial Areas Development Board (KIADB) could change the skyline of Bengaluru and other industrial hubs in the state. The government has allowed developers to build much taller structures by increasing the permissible floor area ratio (FAR) to as high as 5.2, subject to payment of a premium, The Economic Times reported.
The move is expected to encourage denser and more vertical development across industrial, commercial and residential projects, especially in areas where land availability is becoming a major constraint.
What is the floor area ratio (FAR)?
Floor area ratio, also known as floor space index (FSI), is a basic planning rule that decides how much construction is allowed on a piece of land. It is calculated by dividing the total built-up area of all floors by the total area of the plot.
For instance, if a plot measures 1,000 sq m and the FAR is 2, the developer can build up to 2,000 sq m of floor space. This construction can be spread across multiple floors. A higher FAR allows taller or denser buildings, while a lower FAR restricts construction and keeps development more spread out.
City planning authorities use FAR to manage population density, pressure on roads and utilities, and the overall shape of urban growth.
What has Karnataka changed?
According to a government order issued on February 6, Karnataka has revised its planning norms for KIADB areas to allow higher FAR, depending on road width and premium payments. The goal is to use land more efficiently, reduce regulatory hurdles and attract faster investments into industrial zones and townships, the news report said.
Under the new rules, industrial plots located along roads wider than 30 metres can now achieve a maximum FAR of 5.2. Earlier, such plots were allowed a FAR of only around 3.25. Plots along 24-30 metre roads can go up to 4.8 FAR, while those on 18-24 metre roads can build up to 4. Smaller roads also get higher limits than before, ensuring more buildable space across categories, the news report stated.
Boost for industrial townships, factories
The revised norms also allow higher construction intensity in integrated industrial townships. Projects located along wide roads can cover up to 45 per cent of the ground area and build up to 5.2 FAR. This makes it easier to develop large campuses that combine factories, warehouses, offices and worker housing in one location.
Industry experts quoted in the report said the changes will encourage vertical factories, multi-storey warehouses and mixed-use industrial campuses. Earlier rules often left large portions of land unused due to strict height and setback norms.
The new framework will lower business costs, allow higher output per unit of land and generate more jobs. Additional incentives have also been built in to push industrial growth beyond Bengaluru, where land is cheaper and infrastructure is expanding, the news report said.
FAR norms in Mumbai
Mumbai operates under one of the most layered FAR systems in India. In the island city, the base FAR is typically around 1.33, the New Indian Express reported.
However, in redevelopment and slum rehabilitation projects, FAR can go up to nearly 4 to make such projects financially viable.
In suburban Mumbai, the base FAR is usually close to 1. Like the island city, special projects such as Slum Rehabilitation Authority (SRA) schemes and large redevelopment plans can access much higher FAR with approvals and premium payments.
FAR norms in Delhi
Delhi and the National Capital Region follow a wider range of FAR limits. In many parts of Delhi, FAR ranges between 1.2 and 3.5, depending on land use, plot size, road width and zoning rules under the city’s master plan.
Higher FAR is often allowed in redevelopment zones and areas linked to transit-oriented development.
Why FAR is crucial for cities
FAR plays a direct role in shaping housing supply, real estate prices and infrastructure demand. Higher FAR can help cities like Mumbai and Delhi accommodate more people and businesses on limited land. However, without matching upgrades in roads, water supply and public services, denser development can strain urban systems.