Cost of constructing large homes in Gurugram rises as FAR prices soar

Building homes on larger plots in Gurugram has become more expensive, as the Gurugram Town and Country Planning Department has increased the cost of Floor Area Ratio (FAR). This has made constructing large houses approximately 20 per cent more expensive. Notably, this is the first hike in FAR prices in eight years.

According to an order issued by Arun Kumar Gupta, Additional Chief Secretary of the Town and Country Planning Department, the price for purchasing FAR for plots up to 250 sq m remains unchanged. However, for plots larger than 250 sq m, the cost has increased. Previously, the FAR rate for plots between 250 to 300 sq m was Rs 3,770 per sq m, but it has now risen to Rs 4,500 per sq m.

For plots ranging from 350 to 450 sq m, the new FAR rate is Rs 6,500 per sq m. Earlier, one had to pay Rs 5,380 per sq m for plots up to 420 sq m. For plots larger than 500 sq m, the FAR price has jumped to Rs 10,000 per sq m from Rs 8,070 per sq m.

According to the Home Developer Association, this will not have any major impact on the market for larger luxury homes but will go a long way in further strengthening the infrastructure around such properties.

“The prices have been raised after eight years, and the increase is not substantial. The consumer base for large plots and homes is niche, so this won’t have a major impact on demand. However, this hike will go a long way in enhancing the infrastructure around the city, especially in areas with larger plots,” said Narender Yadav, chairman of the association.

Building houses on big plots 20% more expensive

• According to an order issued by Arun Kumar Gupta, Additional Chief Secretary of the Town and Country Planning Department, the price for purchasing FAR for plots up to 250 sq m remains unchanged.
• However, for plots larger than 250 sq m, the cost has increased. Previously, the FAR rate for plots between 250 to 300 sq m was Rs 3,770 per sq m, but it has now risen to Rs 4,500 per sq m.
• For plots ranging from 350 to 450 sq m, the new FAR rate is Rs 6,500 per sq m. Earlier, one had to pay Rs 5,380 per sq m for plots up to 420 sq m.
• For plots larger than 500 sq m, the FAR price has jumped to Rs 10,000 per sq m from Rs 8,070 per sq m.
• According to the Home Developer Association, this will not have any major impact on the market for larger luxury homes.