FSI hike could unlock redevelopment opportunities in Gujarat urban housing
The growing demand for affordable housing in Gujarat has prompted significant pressure from the real estate sector for a major revision in the state’s Floor Space Index (FSI) policy. As the Gujarat government gears up for the release of new jantri rates, real estate stakeholders have turned their attention to FSI benefits as a means of stimulating redevelopment and addressing the region’s housing shortage. The state is currently facing a backlog of 400 redevelopment societies eagerly awaiting the announcement of updated policies that could unlock redevelopment opportunities.
At the forefront of this push is a proposal to enhance FSI for redevelopment projects, drawing on the successful model seen in Maharashtra. Under the Maharashtra model, redevelopment projects are allocated an FSI of 4-5, significantly higher than the general FSI of 1.5. This higher FSI allows developers to construct taller, more dense buildings, thereby providing much-needed housing in urban areas with limited space. NK Patel, President of the Institution of Town Planners of India (ITPI), advocates for Gujarat to adopt similar policies to fuel urban renewal. According to Patel, a boost in FSI would help expedite the redevelopment process in areas suffering from outdated or unsafe infrastructure, thereby addressing both housing and safety concerns.
Additionally, there is growing support for the use of Transferable Development Rights (TDR) for any unused FSI. TDR allows developers to transfer excess development rights to other areas, creating an incentive for developers to make the most out of the available space. Vatsal Patel, former President of the Gujarat Institute of Civil Engineers and Architects (GICEA), highlighted the potential for this policy to encourage vertical growth within city limits. Not only would this provide more housing units, but it would also drive up tax revenue, which could be reinvested in urban infrastructure. The idea of vertical development has become increasingly relevant as cities like Ahmedabad continue to grapple with expanding populations and the strain on civic amenities.
However, any increase in FSI would need to be paired with robust planning for infrastructure upgrades. As vertical development increases, the demand for public services such as water supply, sewage systems, and road networks will rise dramatically. Sandeep Engineer, President of the Gujarat Chamber of Commerce and Industry (GCCI), cautioned that local authorities must proactively plan for the challenges that come with urban densification. Specifically, the Ahmedabad Municipal Corporation (AMC) and Ahmedabad Urban Development Authority (AUDA) will need to enhance infrastructure to accommodate the increased population density. This focus on infrastructure and civic services is vital for ensuring that redevelopment efforts contribute to the overall sustainability and liveability of urban areas.
From a sustainability perspective, increasing FSI offers a significant opportunity to address both environmental and social challenges. Higher FSI enables the development of more energy-efficient, space-optimised buildings, reducing the urban sprawl that leads to deforestation and other environmental concerns. Additionally, taller buildings can better support public transport systems, encouraging a shift away from private vehicle usage, which in turn helps reduce traffic congestion and air pollution. By balancing the need for more housing with considerations for sustainability, the FSI revisions could contribute to a more resilient, eco-friendly urban environment while also fostering the social benefits of improved housing availability and better civic infrastructure.
Through these proposed changes, Gujarat could see a transformative shift in its urban landscape, with better housing opportunities, a stronger economy, and a more sustainable future for its citizens.
