Bengaluru Industrial Corridors Enter Vertical Phase
Bengaluru’s industrial landscape is poised for a fundamental shift after the Karnataka government revised planning controls to allow significantly higher construction intensity within state-developed industrial zones. The policy change, applicable across industrial areas planned by the state’s industrial development authority, enables much taller buildings through enhanced floor area ratio (FAR) norms, signalling a move towards denser, more land-efficient urban growth at the city’s edges. The revised framework allows industrial plots to reach a maximum FAR of 5.2 through premium mechanisms, depending on road width. For a city grappling with shrinking land availability, infrastructure stress and outward sprawl, the change marks a strategic recalibration of how industrial and allied developments are accommodated. Urban planners say the move recognises that horizontal expansion is no longer sustainable for fast-growing metropolitan regions.
FAR determines how much total built-up space is permitted on a given parcel of land. Under the new regime, plots abutting wider roads can support substantially more construction than before, while even smaller internal roads within industrial estates now allow higher buildable potential. The reforms apply not only to manufacturing units but also to commercial facilities, logistics parks, data centres and residential developments permitted within industrial layouts. State officials say the policy is designed to optimise scarce land resources, reduce regulatory friction and support job creation without constantly pushing development further from existing infrastructure networks. By allowing more activity within the same footprint, authorities expect improved productivity per acre and better alignment with global industrial design trends, where vertical factories and stacked logistics facilities are becoming common.
For real estate markets, the implications extend beyond factory floors. Higher FAR allowances are expected to improve project viability across industrial parks, unlocking previously unviable investments and encouraging mixed-use ecosystems. Industry analysts note that demand for worker housing, neighbourhood retail and office space is likely to rise around high-density industrial clusters, particularly along emerging corridors on Bengaluru’s northern and eastern peripheries. However, urban experts caution that increased density brings new responsibilities. Transport capacity, water supply, energy systems and waste management will need to scale in parallel to avoid replicating the congestion challenges seen in older industrial belts. From a climate perspective, denser development can reduce land consumption and commute distances, but only if paired with efficient public transport, green building standards and resilient infrastructure planning.
The policy also includes relaxed setback rules for smaller plots and revised parking norms aimed at reducing non-productive land use. Consultants estimate that earlier regulations left a large share of industrial land underutilised, limiting economic output while inflating costs. Looking ahead, planners believe the success of Bengaluru’s industrial densification will depend on coordinated infrastructure delivery and careful monitoring of cumulative impacts. If managed well, the shift could support a more compact, productive and inclusive urban economy one that balances growth with long-term liveability as the city continues to expand.
