Realty: Haryana govt may raise floor area ratio in Gurgaon

Haryana government is set to hike the floor area ratio (FAR) for Gurgaon sources told CNBC-TV18. This means developers will be able to build more and therefore, sell more on the land that they own in Gurgaon. The state government at the moment is looking to increase FAR from the current 1.7 percent to as high as 2.25-2.50 percent. This will translate into a FAR increase of almost 28-42 percent.

Also read: World's ultra-rich hold a 5th of their wealth in realtyThe other big booster is that the government is looking to increase the FAR 50 meters along the Gurgaon metro line by as much as 50-70 percent from the current 1.75 to 3. The biggest beneficiary would be DLF. It runs India's first metro developed as a public private partnership with IL&FS.

If one looks at the listed space, companies that have large positions in Gurgaon like DLF, Parsvnath, Omaxe, Godrej also have smaller landholding in Gurgaon.

This is certainly good news. From a consumer’s point of view, developers say that if they are allowed build more, they would have higher FARs and they can bring down the cost of project and therefore, the consumer would be benefited.