Bengaluru: The city’s real estate sector is at a pivotal juncture as developers advocate for regulatory changes to facilitate vertical expansion. Despite the Karnataka government unveiling the draft Karnataka Planning Authorities (Amendment) Rules in March, the awaited Governor’s clearance has yet to be granted, causing significant delays in leveraging the proposed premium Floor Area Ratio (FAR) enhancements. This regulatory stagnation is hindering the real estate sector’s growth prospects in Bengaluru.
The Confederation of Real Estate Developers’ Associations of India (CREDAI) Bengaluru has recently escalated their concerns in a meeting led by Deputy Chief Minister D.K. Shivakumar. CREDAI’s memorandum underscores the urgent need to expedite the approval process for the new regulation. CREDAI Bengaluru’s President and Brigade Group Executive Director, Niranjan Hiranandani, remarked, “If the government is committed, these changes should be implemented without delay.” At present, developers are compelled to use Transferable Development Rights (TDR) to build additional floors, a less efficient method compared to the anticipated FAR revisions.
Vertical development is becoming increasingly crucial for urban growth, especially as other Indian cities like Hyderabad are advancing to 50-60 storey structures. Bengaluru, with its burgeoning population and sky-high land prices, is ripe for similar development strategies. However, the city’s real estate sector is facing obstacles not just with vertical expansion but also with the complexities surrounding the TDR policy. The policy, which compensates landowners with TDR certificates for land surrendered for infrastructure projects, is in practice in cities such as Hyderabad and Mumbai.
CREDAI Bengaluru has also pressed for improved ease of doing business, requesting measures like a streamlined single-window system for no objection certificates (NOCs), reduced approval fees, and standardised zoning regulations. Additionally, there is a call for enhanced infrastructure development, prioritising projects such as flyovers, metro lines, and road widening, to keep pace with the city’s growing needs. The real estate body also seeks reductions in land transaction costs and more favourable taxation policies, including lowering stamp duty rates and cement taxes. These recommendations are aimed at curbing the escalating costs associated with real estate development and making Bengaluru a more attractive market for investment.
