Bengaluru Industrial Zones Set For Taller Developments
Bengaluru is poised for a notable shift in its urban landscape as Karnataka relaxes building regulations within industrial corridors, allowing developers to construct taller and denser structures. The state government has amended guidelines under the Karnataka Industrial Areas Development Board (KIADB), permitting a floor area ratio (FAR) of up to 5.2 for industrial plots through premium payments. This policy change is expected to accelerate integrated industrial, commercial, and residential projects in peripheral and emerging zones.
FAR, a measure of total buildable floor space relative to plot size, dictates vertical and horizontal expansion. For instance, a 10,000 sq metre plot at FAR 2 allows 20,000 sq metres of construction, whereas an FAR of 5 increases this to 50,000 sq metres. By raising FAR limits, the government enables more efficient land use and encourages developers to explore multi-level warehouses, data centres, offices, and mixed-use townships.
Previously, industrial plots along roads wider than 30 metres were capped at a FAR of 3.25. Under the revised rules, these parcels can now reach 5.2 FAR. Roads measuring 24–30 metres allow 4.8 FAR, 18–24 metres permit 4.0, and 12–18 metres accommodate 3.6 FAR. Even smaller roads under 12 metres now support FAR between 2.45 and 2.8, creating uniform opportunities across KIADB zones. Urban planners and industry analysts suggest that higher FAR will increase land values and make smaller plots economically viable for large-scale developments. This could accelerate project launches in industrial clusters, stabilise emerging micro-markets, and attract institutional investment. More intensive development may also catalyse ancillary infrastructure, including transport links, logistics nodes, and residential settlements to support workforce growth.
While the policy primarily targets peripheral industrial estates, the indirect impact on housing and urban mobility could be substantial over time. Increased employment density and economic activity along industrial corridors may shift housing demand outward, prompting new townships and mixed-use developments. Experts caution, however, that supporting infrastructure must keep pace to prevent congestion and strain on utilities, particularly water, transport, and power. The revised FAR policy positions Bengaluru’s industrial zones for higher-density, vertically integrated growth, aligning with broader goals of efficient land utilisation and sustainable economic development. Monitoring implementation and integrating climate-resilient planning principles will be crucial to ensure that industrial expansion does not exacerbate environmental or social pressures.