FAR (Floor Area Ratio) is all set to get a hike, from 3.5 to 4 around Aqua Metro line from Noida to Gr Noida but it has future challenges for both authorities.
Gr Noida Industrial Development Authority (GNIDA) has proposed to hike FAR within 500 meters of Noida- Gr Noida metro corridor, Aqua Line from 3.5 to 4. This 29.7 km metro line has 21 metro stations; 15 in Noida and 6 in Gr Noida. Although the proposal is in nascent stage and under consideration but it is expected that FAR hike will increase supply of residential and commercial unit in real estate projects.
This proposed hike will be applicable on ongoing and upcoming residential projects of the region. Developers are keen to get this approval since this will add more figures in projects and attract home buyers to invest in projects close to metro corridor. Currently Aqua Metro ridership is not as it was expected during launch. Hence this could be an effort of authorities to attract more people towards nearest sectors.
Dinesh Jain, MD of Exotica Housing says, “Hike in FAR around Aqua line metro is good for upcoming housing and commercial projects. From central noida to Gr Noida, huge land bank will fall in this category and will become premium in the category. For example; Sector 75- 79 has very limited land bank where new projects are expected sooner or later. “
The matter is subject of approval from various departments of state govt. but if this gets approval as proposed then these projects would have added advantage to develop additional units than others. Being central Noida, home buyers will prefer to choose home near metro corridor. Similarly Noida Expressway from sector 137 to 150 and Gr Noida will gain attention of investors.
Real estate advisers also feel that FAR hike will push real estate market of Noida and Gr Noida. “This is huge opportunity for future projects near Aqua lime metro. Be it residential or commercial, hike will add additional floors and respectively units in the project falling under 500 meter area. Developers will have more to construct and investors will have options to choose. After launch of Noida- Gr Noida metro, this is a periodic hike in FAR. It is expected to attract a dense population around metro corridor stations. On the other hand, revenue of authority will go up that will help to manage resource and infrastructure around metro stations” says
Saurav Paruthi- MD, Param Homes.
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From sector 51 to sector 148 and knowledge park 3 to depot, Aqua metro line has huge land bank on both sides categorized in residential, commercial and institutional etc. Population of near by societies will demand last mile connectivity for the same. In other ways, FAR hike will earn more revenue for authorities. But it will challenge for authorities to manage resources and traffic for commuters.
According to Avneesh Sood- Director, EROS Group, “Hike in FAR is good opportunity for projects but somehow it creates a dense society for residents. More floors will add more units and of course they need similar resources like other units. So somehow the phase or that part of project puts burden on overall project. Approval of FAR demand extra time, involve finance and affects time line of completion too. In fact in Eros Sampoornam I, we are developing project on the basis of old FAR that is 2.75 instead of current i.e; 3.5 allowed. A low rise housing society in Gr Noida West would be centre of attraction in the region.”
Not to forget that purchasing extra FAR also involves huge sum for developers and paper work. Further the builder need to develop and ensure similar infrastructure to the extended towers like others in society and region. Sector 51 to 79 is highly populated belt due to existing housing societies. The condition is similar from sector 137 to 148 where real estate projects are either operation or soon will be operational.
Suresh Garg- CMD, Nirala World has different views on this. He says, “Metro corridor in region solves connectivity issue for daily commuters that attract home buyers to invest and shift. This actually scales up demand of houses in those regions. Having limited land bank, rising FAR is the only step to accumulate more families in the region. This could be an opportunity for developers but extra FAR need extra cost to purchase from authority and re-planning from foundation to top of projects. It is upto developer whether they want to avail extra FAR or not.”
Floor area ratio (FAR) is the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built. The terms can also refer to limits imposed on such a ratio through zoning.